New York Just Passed a Major AI Advertising Law
New York recently became the first state in the nation to require disclosures when certain advertisements contain AI-generated content. While the legislation specifically targets political advertising, the broader message is hard to ignore: transparency around AI is becoming a priority.
For marketers, business leaders, and agencies, this is more than a political story. It is an early signal of where advertising regulations may be heading and what consumers will increasingly expect from the brands they trust.
What Is the New York AI Disclosure Law?
Governor Kathy Hochul signed legislation (S.8420-A; NY General Business Law § 396-b) requiring advertisements that use synthetic media created or substantially altered by artificial intelligence to include a disclosure informing viewers that AI was used.
The concern lawmakers are attempting to address is straightforward. As AI tools become more sophisticated, it becomes increasingly difficult for consumers to distinguish between authentic content and content that has been artificially generated.
The legislation is designed to provide transparency so viewers understand what they are seeing before forming opinions based on that content. Lawmakers argue that consumers deserve clarity when synthetic performers are being used to sell products, promote services, or influence purchasing decisions.
The New York legislation reflects a growing belief that innovation and transparency should go hand in hand. Rather than restricting the use of AI in advertising, the law focuses on disclosure, giving consumers additional context about the content they are viewing.
What Counts as AI-Generated Content?
One of the biggest questions surrounding AI regulations is where the line should be drawn. Not every use of artificial intelligence creates the same level of concern.
For example, using AI to brainstorm content ideas or assist with editing copy is very different from generating a realistic video of someone saying something they never said.
The New York legislation primarily focuses on synthetic media, including:
- AI-generated images
- AI-generated video
- Voice cloning
- Digitally altered content that creates a false representation of reality
- Deepfakes and other realistic simulations
The emphasis is not simply on whether AI was involved. The concern is whether AI was used to create content that could reasonably be mistaken as authentic.
That distinction is important because AI is becoming integrated into countless marketing tools. Future regulations will likely focus less on AI’s presence and more on its impact on consumer understanding.
Why Brands Should Pay Attention and What New York’s AI Disclosure Law Means for Marketers
Even if your business doesn’t operate in New York, this law deserves your attention.
One of the biggest misconceptions about the legislation is that it only affects New York-based companies. In reality, the law applies to advertisements shown to consumers in New York. For brands running national, regional, or digitally targeted campaigns, that distinction matters. A company headquartered in another state could still face compliance considerations if its advertising reaches audiences in New York.
That reality alone should put this law on the radar of marketers across the country.
Beyond its immediate implications, the legislation also signals a larger shift in how regulators are approaching artificial intelligence in advertising. Historically, major changes in advertising regulation often begin in a single state before influencing broader industry standards. Privacy regulations, data collection requirements, and influencer disclosure rules all followed a similar path.
Whether or not other states adopt comparable legislation, the conversation around AI is evolving. The focus is no longer centered solely on what artificial intelligence can create. Increasingly, it is about what consumers should know.
That distinction matters.
Consumers are becoming more aware of how AI is being used in marketing, and many are demanding greater transparency from the brands they engage with. In many cases, regulations follow changes in consumer expectations rather than create them.
For marketers, the takeaway is not that AI should be avoided. AI will continue to be a powerful tool for creative development, content production, campaign execution, and operational efficiency.
The takeaway is that transparency is becoming part of the equation.
Transparency Is Becoming a Competitive Advantage
As AI-generated content becomes more common, audiences are becoming more skeptical of what they see online. Trust is becoming harder to earn and easier to lose.
For brands, transparency should not be viewed as a compliance burden. It should be viewed as a business opportunity. Consumers tend to reward organizations that communicate openly. When companies are clear about how content is created, they remove uncertainty and strengthen credibility.
The brands that thrive in the AI era will not necessarily be the brands using the most advanced technology. They will be the brands consumers trust the most. That’s why many organizations are beginning to establish internal AI policies long before regulations require them to do so.
Being proactive today often prevents problems tomorrow.
What Smart Brands Should Be Doing Right Now to Comply With New York’s AI Disclosure Law
Businesses do not need to wait for additional regulations to start preparing.
Marketing leaders should already be evaluating how AI is being used across their organizations and where transparency makes sense.
Some important questions include:
- How is AI being used throughout our content creation process?
- Are there situations where disclosure would help build consumer trust?
- Do we have review processes for AI-generated creative assets?
- How do we ensure AI-generated content is accurate and not misleading?
- Are we documenting how AI is being used across advertising campaigns?
The answers will vary by industry and organization, but the exercise itself is valuable.
Companies that establish clear standards today will be better positioned as regulations continue to evolve.
The Bottom Line
New York’s AI disclosure law represents one of the clearest signs yet that transparency is becoming a foundational expectation in the age of artificial intelligence.
Brands that treat AI disclosure as a regulatory hurdle may find themselves constantly reacting to change. Brands that view transparency as part of their strategy will be better positioned to earn trust, build stronger relationships, and adapt as new standards emerge.
At Brandon, we believe great marketing is built on more than creativity alone. It requires strategic thinking, adaptability, and a deep understanding of the forces shaping the marketplace. As regulations, technologies, and consumer expectations continue to evolve, we’re committed to helping brands stay ahead of what’s next while maintaining the trust that drives long-term growth.
If you’re evaluating how AI fits into your marketing strategy, reach out to our team to start a conversation about building campaigns that are innovative, transparent, and ready for the future.
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