New York mandates disclosure labels for AI-generated 'synthetic performers' in ads

The law marks the first time a U.S. state has regulated the creative output of AI in advertising rather than just data privacy or deepfake fraud. For streaming platforms and agencies, this creates an immediate compliance hurdle for ‘multimodal’ campaigns that use AI-generated extras or models across social and digital display. It signals a shift toward mandatory AI transparency that will likely fragment the national ad market as states like California and Illinois advance similar but distinct likeness protections. Watch for a rise in 'AI-free' certification services as brands attempt to audit their supply chains to avoid state-level penalties.

The New York law is part of an accelerating legislative push to codify 'digital likeness' rights. In September 2024, California Governor Gavin Newsom signed AB 2602 and AB 1836, which respectively require informed consent for AI-generated digital replicas of living performers and empower estates to protect the likeness of deceased artists, per Manatt. Similarly, Illinois amended its Right of Publicity Act in August 2024 to prohibit the unauthorized distribution of digital replicas, effective January 2025, per Reuters. These state moves have created a complex regulatory patchwork that some federal lawmakers are working to streamline.

At the federal level, the bipartisan NO FAKES Act was reintroduced in May 2026 to establish a national property right over an individual’s voice and visual likeness, per a Senate report. The federal bill includes a notice-and-takedown mechanism modeled after the DMCA, aimed at providing a unified standard to preempt conflicting state rules. However, the federal effort faces pressure from a late 2025 executive order that urged states to pause AI regulations to maintain U.S. competitive standing against China, according to legal analysis from Davis Wright Tremaine.

Internationally, the landscape is tightening as the European Union’s AI Act reaches its primary enforcement phase in August 2026. Per Charles Russell Speechlys, the EU Act mandates that any content constituting a 'deepfake' must be disclosed with technical markers like watermarks or metadata. For global streaming and advertising firms, the simultaneous activation of New York’s standards and the EU’s mandates suggests that 'conspicuous disclosure' will soon be a baseline operational requirement for any AI-assisted creative production.