The news: California governor Gavin Newsom signed a law on Wednesday requiring disclosures on any video or audio advertisement using AI-generated performers. The bill also prohibits the continued use of ads currently in violation of the new law.

The news comes just a few months after New York passed a similar law requiring disclosure when AI-generated performers are used in ads.

Why it matters: Marketers must now track state-level requirements closely and build flexibility in campaigns so they can adjust ad creative and disclosures as rules evolve.

Changes in AI regulations vary by market. California and New York are just the beginning of a broader wave from other states, increasing complexity for advertisers operating across markets.

But even as laws like California’s make marketing across jurisdictions more complicated, marketers that learn to navigate the shifting landscape of AI disclosures can turn compliance into an advantage.

• Labeling video ads as AI-generated doesn’t hurt how ads perform, per MediaScience.
• 57% of Gen Z and millennial consumers want advertisers to disclose when an ad uses AI-generated video, above any other format, per IAB and Sonata Insights.
• 56% want advertisers to disclose when ads are 100% AI generated, while 54% want disclosures for AI-generated images and 48% for AI-generated voices.

Consumers aren’t entirely averse to AI being used in advertising. 2025 EMARKETER data showed that consumers across generations did not report disliking an ad more when they noticed it used AI. That suggests that the bigger risk is opaque use of AI—and that brands may benefit from labeling AI-generated ads even in states where disclosure is not yet required, given the lack of evidence that disclosure harms performance.

Implications for marketers: Even though AI laws vary across states, advertisers can use clear disclosures to meet emerging requirements and audience preferences without automatically undermining ad performance.

• Establish shared governance frameworks with clear human accountability and oversight at the forefront. That could mean implementing stricter constraints and controls that can be applied at scale.
• Apply disclosure requirements consistently, coordinate with platforms that might have specific labeling standards, and ensure all workflows are updated to reflect new regulations.
• Rethink how AI is used in content creation as disclosure becomes mandatory in more jurisdictions. Consider limiting AI-generated content in ads if you believe it will complicate compliance.

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