The news: Pennsylvania passed a bill Thursday that requires the disclosure of AI use in ads under certain circumstances.

• The bill, which will now go to Governor Josh Shapiro, requires disclosure when campaign materials modified or created using AI mislead the consumer about the “nature, origin or authenticity of the goods or services being advertised.”
• Under the bill, AI disclaimers must be in the same medium as the advertisement, and, when possible, should be “permanent or extraordinarily difficult to remove from the synthetic content.”
• The bill goes beyond some state laws that only require disclosures for AI-generated humans and performers.

The trend: AI advertising laws are fragmenting both domestically and globally.

• New York has two AI regulations that place barriers on AI-generated human images in ads; one requires a conspicuous disclosure for AI-generated performers, while the second focuses on protections of deceased individuals.
• California governor Gavin Newsom last month signed a law requiring disclosures on video or audio ads that use AI-generated performers.
• Globally, regulations like the EU AI Act require disclosures when AI-generated or modified images, video, or audio could be mistaken for authentic content.

Where it differs: Pennsylvania’s proposed changes, while similarly targeting AI in advertising, differ from other legislation by focusing less on AI-generated performers and more on any content that could mislead consumers on a product’s nature, origin, or authenticity.

That raises the stakes for brands to closely monitor AI disclosures and scrutinize whether their creative could mislead consumers about what they’re buying, even unintentionally.

Recommendations for marketers: The growing patchwork of AI regulations make the inclusion of AI in ads riskier without clear, consistent internal guidelines.

• Verify product accuracy before launching. Check that any AI-generated ad content accurately depicts a product’s appearance, size, features, packaging, and performance—or stick with AI for internal campaign aspects like audience analysis and targeting. If choosing the former, human oversight will be critical to catch AI alterations that make a product appear differently from what the customer will actually receive.
• Scrutinize any implied claims the campaign makes. Ask what the average customer would assume from viewing the creative without more knowledge of the brand, even if the ad makes no explicit claims. For instance, a campaign with a cleaning product showing stains removed instantly could imply results the product does not actually deliver.
• Document reviews and disclosures. A clear review process involving marketing, legal, and product teams should be established, while disclosures should be assessed to ensure they are sufficiently clear under the rules in different jurisdictions.

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