New York laws cracking down on AI in ads are here

The news: Two AI regulations will go into effect in New York on Tuesday that place barriers on AI-generated human images.

  • One law requires a conspicuous disclosure when AI-generated performers are used in advertisements.
  • The second law expands protections for deceased individuals by limiting unauthorized AI-generated replicas of their voice or likeness and giving rights holders greater control over commercial use.
  • Movies, TV shows, video games, books, and other creative works are exempt, and ads promoting those works can use AI if it remains consistent with its use in the work itself.
  • The law also does not apply for audio-only ads.
  • Brands will not be penalized for the use of AI for language translation of human performers under the new laws.
  • Media companies and online platforms generally won’t be responsible if someone else places an ad that breaks the law; liability remains with the advertiser or creator of the content.
  • First-time offenses will be fined $1,000, and $5,000 for each subsequent violation.

The trend: AI regulation is trending up globally.

  • In the US, more than 250 AI bills in over 40 states have been proposed as of Q1 2026, per DLA Piper.
  • The EU AI Act, effective August 6, establishes a risk-based framework that requires disclosure when AI-generated or manipulated images, audio, or video—such as deepfakes depicting real people—could be mistaken for authentic content.
  • China maintains centralized, strict AI controls with heavy oversight of content, algorithms, and data use; this includes rules around synthetic media and digital likeness.

Why it matters: The regulations come at a time when advertisers are ramping up AI usage for campaign creation and deployment.

  • Advertisers are increasingly using AI to generate, enhance, and personalize creative assets. Seventy-four percent of US advertisers use AI for enhancement, per Advertiser Perceptions, while 38% use it to generate entire creative assets.
  • Major tech companies including Meta, Amazon, and Google are rolling out AI tools that accelerate content creation, from image-to-video generation and AI-generated characters to creative agents that automate campaign production.

Implications for marketers: As AI becomes more embedded in advertising workflows, brands face a growing patchwork of rules governing how synthetic people and content can be used. Brands advertising in New York and other regulated markets will need to build disclosure, consent, and rights-management checks directly into creative workflows rather than treating them as after-the-fact legal reviews.

AI laws are likely to spread. Those already using digital replicas of real people will need to ensure they have documented consent, while brands may increasingly favor wholly synthetic personas that avoid likeness-related legal risks.

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