If your business runs video or image ads, and any of the people in them were generated by AI, New York now requires you to say so. Since June 9, 2026, New York General Business Law § 396-b has required advertisers to conspicuously disclose when an advertisement includes a “synthetic performer,” meaning an AI-created person who looks like a real human but is not any identifiable individual.

Governor Kathy Hochul signed the law (S.8420-A/A.8887-B) on December 11, 2025, and her office has called it the first law of its kind in the nation. The short version: if you know an ad contains an AI-generated human performer, label it clearly. Otherwise you face civil penalties of $1,000 for a first violation and $5,000 for each one after that. This guide explains what the statute covers, what it leaves out, and how to build a disclosure process before regulators come asking.

What New York’s AI Disclosure Law Requires

The core obligation is in a single sentence. A person engaged in the business of dealing in property or services who, for a commercial purpose, produces or creates an advertisement in any medium must “conspicuously disclose in such advertisement that a synthetic performer is in such advertisement, where such person has actual knowledge.”

Four parts of that sentence do most of the work:

• Who is covered: the business that produces or creates the ad for a commercial purpose. This will usually be the brand, but it can also be the agency or production company that builds the creative.
• What triggers the duty: the presence of a synthetic performer. AI-written copy, AI-generated backgrounds, and AI product renders without a human figure do not trigger it.
• Knowledge: the duty applies only where the advertiser has actual knowledge that a synthetic performer is in the ad. This is not strict liability. An earlier version of the bill would also have counted what an advertiser’s agents or employees knew, and that language was removed before enactment.
• Where the disclosure goes: in the advertisement itself, not on a separate web page or in your terms of service.

What Counts as a “Synthetic Performer”?

The statute defines a synthetic performer as a digitally created asset, “created, reproduced, or modified by computer, using generative artificial intelligence or a software algorithm,” that is intended to create the impression that it is engaging in an audiovisual or visual performance of a human performer “who is not recognizable as any identifiable natural performer.”

In practice, these ads are likely covered:

• An AI-generated spokesperson or presenter in a video ad
• AI-generated models wearing or holding products in e-commerce listings, display ads, or social posts
• Virtual influencers created with generative AI who appear in sponsored content
• Crowd scenes or “customer” testimonials featuring people who were generated rather than filmed

The definition excludes AI versions of real, recognizable people. Digital replicas of real people are governed by a different body of law, including New York’s right of publicity statutes and, if you use them without consent, the misappropriation of publicity claims covered elsewhere on this blog. Using a real person’s AI likeness does not avoid liability; it simply moves the risk to a different law.

There are gray areas. Commentators have flagged that the law does not clearly say whether traditional CGI, motion capture, or digital compositing counts as a “software algorithm,” or how much AI alteration turns a real actor into a synthetic performer. Until regulators or courts answer those questions, treat substantial AI generation of a human figure as a disclosure trigger.

Exceptions to the Disclosure Requirement

The statute carves out four situations:

1. Expressive works. Ads and promotional materials for movies, TV shows, streaming content, documentaries, video games, and similar audiovisual works are exempt, as long as the synthetic performer is used in the ad the same way it is used in the work.
2. Audio advertisements. Audio-only ads, such as radio spots and podcast reads, are exempt, even if they use an AI-generated voice. A synthetic voice paired with an AI-generated person on screen in a video ad is not audio-only.
3. Language translation. If the only AI use is translating a real human performer into another language, no disclosure is required.
4. The medium that carries the ad. Newspapers, magazines, TV networks and stations, streaming services, cable systems, billboards, and transit advertisers are not liable for publishing or disseminating a noncompliant ad. The statute also preserves the immunity that interactive computer services have under federal law (47 U.S.C. § 230). The obligation stays with the business that created the ad.

Penalties and Enforcement

A violation carries a civil penalty of $1,000 for the first violation and $5,000 for any subsequent violation. The statute does not create a private right of action, so consumers and competitors cannot sue under § 396-b directly. Enforcement is expected to come from the New York Attorney General.

The law does not say how violations are counted: per ad, per placement, per impression, or per campaign. If each placement is a separate violation, a single undisclosed campaign running across many channels could add up quickly. As of late summer 2026, there were no reported enforcement actions, no published guidance from the Attorney General, and no court challenge to the statute. The absence of early enforcement is not a safe harbor. It also means the first cases will define the rules.

A missing disclosure can also create exposure outside § 396-b. An ad that leads consumers to believe a real customer or a real professional is speaking can be a deceptive practice under state consumer protection laws and Section 5 of the FTC Act. That is the same analysis that applies to e-commerce false advertising generally.

Does the Law Apply to Businesses Outside New York?

Probably, if your ads reach New York consumers. The statute is written around the advertiser’s conduct and does not expressly limit itself to New York-based companies, and most commentators read it to reach ads shown to New York audiences. Geographic scope is one of the open questions practitioners have flagged. But national digital and social campaigns almost always reach New York, and adding a disclosure costs little compared with building a New York-only version of a campaign. For most brands, the practical answer is to disclose everywhere.

What Makes a Disclosure “Conspicuous”?

The statute does not define “conspicuous” or prescribe any wording, size, or placement, and no state guidance has been issued. The most useful benchmark is the Federal Trade Commission’s definition of “clear and conspicuous” in its Endorsement Guides, 16 C.F.R. § 255.0(f): a disclosure must be “difficult to miss” and easily understandable by ordinary consumers. Applied to synthetic performers, that means:

• Video: put an on-screen label in the visual portion while the synthetic performer is on screen, in a size, contrast, and duration a viewer can read. Adding a voice-over line makes it stronger.
• Static images and product listings: put the label on or directly next to the image, not in a caption the user has to expand.
• Social media: place the disclosure in the creative itself or at the start of the caption, before the “more” cutoff. Use platform AI labels as well, but do not rely on them alone.
• Plain language: wording such as “AI-generated performer” or “The people in this ad were created with AI and are not real” works. Vague phrases like “digitally enhanced” may not tell viewers what they need to know.

Our earlier post on sponsored content risks covers how the FTC evaluates disclosures that are technically present but easy to miss.

A Companion Law on Digital Replicas of Deceased Performers

On the same day, Governor Hochul signed a second bill (S.8882) amending New York Civil Rights Law § 50-f, the state’s post-mortem right of publicity. That law took effect immediately. It requires consent from the rights holders before a business uses a deceased personality’s name, voice, or likeness, or a digital replica of a deceased performer, for commercial purposes. Damages are the greater of $2,000 or actual damages, plus profits attributable to the use and, in some cases, punitive damages. Exceptions cover news, commentary, parody, documentaries, and other expressive uses.

Taken together, the two laws draw a line. If you use a synthetic person who is not real, disclose it. If you use a digital replica of a real person, living or deceased, you need permission.

How the Federal Executive Order Affects the Law

On December 11, 2025, the day the New York law was signed, the President issued an executive order aimed at limiting state AI regulation. It directs the Department of Justice to challenge state AI laws it considers burdensome and ties certain federal funding to state AI policy. An executive order cannot repeal a state statute, and no court has blocked § 396-b. Unless and until that changes, the disclosure requirement is enforceable, and advertisers should comply.

Compliance Checklist for Advertisers

1. Inventory your creative. Identify live and scheduled ads that use AI-generated people, including product photos, marketplace listings, and social content, not just video spots.
2. Assign responsibility in your contracts. Require agencies, production companies, and virtual influencer partners to tell you in writing when a deliverable includes a synthetic performer. Because the law turns on actual knowledge, you want that information flowing to you, and you want the contract to say who adds the label.
3. Add a review step. Make “Does this ad include an AI-generated person?” a standard question in your pre-launch ad review, alongside claim substantiation and endorsement disclosures.
4. Standardize your labels. Create approved disclosure formats for each format you run: video, static, social, and programmatic.
5. Keep records. Document which tools created each asset and when, and keep copies of disclosed versions. If the Attorney General asks, you will want to show your process.
6. Watch other states. Similar proposals are moving elsewhere. Our overview of AI disclosure laws for e-commerce and SaaS brands tracks the broader trend, and our post on using AI in marketing covers the copyright and consumer protection issues that come with AI creative.

Frequently Asked Questions

When did New York’s synthetic performer disclosure law take effect?

June 9, 2026. Governor Hochul signed S.8420-A/A.8887-B on December 11, 2025, and the law took effect 180 days later. It is codified in New York General Business Law section 396-b.

Do I have to disclose AI-generated voices in my ads?

Not in audio-only ads. The statute exempts audio advertisements, such as radio spots and podcast ads. The law targets visual and audiovisual performances, so an AI-generated person appearing on screen in a video ad must be disclosed. A synthetic voice paired with a real, filmed actor is a gray area worth reviewing with counsel.

Does the law cover AI-generated versions of real people?

No. The definition covers only performers who are not recognizable as any identifiable natural person. Using an AI replica of a real person raises separate right of publicity issues, and for deceased performers New York Civil Rights Law section 50-f requires consent from the rights holders before commercial use.

Can a consumer sue me for failing to disclose a synthetic performer?

Not under section 396-b. The statute sets civil penalties of $1,000 for a first violation and $5,000 for later violations but does not create a private right of action, so enforcement is expected to come from the New York Attorney General. A misleading ad could still support claims under other consumer protection laws.

Is my ad agency or my company responsible for the disclosure?

The duty falls on the person who, for a commercial purpose, produces or creates the advertisement and has actual knowledge that it includes a synthetic performer. That can include both the brand and its agency. Newspapers, broadcasters, streaming services, billboards, and other media that simply run the ad are not liable. Your agency contracts should say who is responsible for adding the disclosure.

Talk to Revision Legal About AI Advertising Compliance

Revision Legal advises brands, agencies, and AI companies on advertising disclosures, influencer programs, and consumer protection risk. If you use AI-generated people in your marketing, our internet lawyers can review your creative, your agency contracts, and your disclosure process. You can contact us through the form on this page or call (855) 473-8474.