Real or Rendered? – How New York’s Proposed Synthetic Performer Disclosure Bill Could Change the Script For Advertisers

New York’s proposed Synthetic Performer Disclosure Bill (), currently advancing in the New York State Legislature, could impose mandatory disclosure requirements on advertisements generated by artificial intelligence (AI) or which contain digitally altered human-like figures. While intended to promote transparency, the bill’s broad scope and ambiguous definitions has raised potential compliance and operational concerns for advertisers, agencies and content creators. The bill requires conspicuous disclosures in advertisements that include “synthetic performers”—a term the bill defines broadly to encompass a digital asset created, reproduced or modified using generative AI or software algorithms to simulate a human performance.

The bill mandates that advertisers clearly disclose any ads featuring AI “synthetic performers,” or face civil penalties ranging from $1,000 to $5,000 per violation.

The advertising industry, including the American Association of Advertising Agencies, the Association of National Advertisers and the National Association of Broadcasters, has voiced strong opposition to the bill, citing the following concerns: 

• Overbreadth: The bill’s definition of synthetic performers could encompass standard industry practices such as computer generated imagery (CGI) animation, digital compositing autotune, voiceovers and AI-assisted postproduction techniques, many of which consumers are generally accustomed to or expect to observe in content or advertisements.
• Compliance Ambiguity: The bill lacks clarity on what constitutes a “conspicuous” disclosure, creating uncertainty and potential for inconsistent enforcement.
• Innovation Chilling Effect: By failing to distinguish between fully autonomous AI-generated content and human-directed enhancements of AI, the bill may stifle creative and technological innovation beyond accomplishing its objective of transparency in marketing.
• Competitive Disadvantage: New York-based advertisers could face higher compliance burdens than those in other states, potentially deterring investment, production, and job creation.

Why it matters

While the legislation aims to promote transparency for consumers, especially in an age where AI is becoming more prevalent in various interactions between advertisers, content creators and consumers, the bill’s broad scope creates significant unintended consequences. In certain cases, where it may be material to a consumer’s behavior or purchasing intent, disclosure of AI in advertisement may be appropriate. However, the broad scope of the bill instead creates unintended financial and operational burdens which could be substantial for the advertising industry—injecting compliance uncertainty into the advertising and production process, burdening brands (and their agencies) who advertise in New York, and undermining creative and technological innovation and potentially eliminating certain cost efficiencies and savings that can be achieved using technology that may, in some cases, improve both the process and user experience. If enacted, the bill would have far-reaching implications across the advertising supply chain:

• Advertisers and agencies must audit creative assets for synthetic elements and implement disclosure protocols.
• Advertising technology platforms may need to develop tools to detect and flag synthetic content.
• Content creators using AI tools for voiceovers, avatars or post-production effects could face new legal exposure.

The bill, in its current form, fails to define what constitutes a “conspicuous” disclosure, opening the door to inconsistent enforcement and confusion among regulators, advertisers and other stakeholders, although we would generally recommend adhering to long standing Federal Trade Commission principals on disclosure in the endorsement context as a guidepost. Arguably, the law as currently drafted risks chilling the use of otherwise innocuous technology, slowing innovation as advertisers abandon AI and software-based tools in favor of safer, analog alternatives. The very innovations that brought us CGI, autotune and modern post-production may be sacrificed in an effort to avoid the financial penalties this bill imposes.

Manatt is closely monitoring the bill’s progress and will provide updates as it moves through the legislative process. In the meantime, we recommend advertisers and agencies:

• Conduct an internal audit of advertising and content creation workflows to identify potential use of synthetic performers.
• Educate existing workforce on these potential new rules and implement or supplement AI policies to address the potential consequences of the law.
• Review contracts with vendors and creative partners to allocate disclosure responsibilities.
• Prepare compliance protocols in anticipation of potential enactment.