New York’s new law forces advertisers to say when they’re using AI avatars

New York Gov. Kathy Hochul signed a bill Thursday that will require advertisers to identify if an ad includes AI-generated people. Hochul’s announcement said the bill, S.8420-A/A.8887-B, was the first of its kind in the US, describing it as a “common sense” law that would bring increased transparency and protect consumers. A separate bill also signed by Hochul requires that entities get consent from heirs or executors if they want to use a deceased person’s name or likeness for commercial purposes.

The bills are especially relevant to the film industry and actors, for whom AI usage (and compensation) is one of the most pressing issues the profession is facing. In a joint press release with Hochul, SAG-AFTRA executive director Duncan Crabtree-Ireland celebrated the signings.

“These protections are the direct result of artists, lawmakers and advocates coming together to confront the very real and immediate risks posed by unchecked AI use,” Crabtree-Ireland said. The disclosure bill says that the notice must be “conspicuous” when the ad includes a synthetic avatar that doesn’t correspond to a real human. The bill dealing with the likenesses of deceased people is part of the state right of publicity — there’s no federal right of publicity, but instead a patchwork of uneven state laws, many of which are not updated for the generative AI era.

There are some specific cases where a disclosure isn’t needed: if the advertisement or promotional material is for an “expressive work” like a movie, TV show, or video game, where the AI avatar in the ad is consistent with its use in the work. State politics outlet New York Focus reported that at least a few state agencies have used AI to produce ads, though in some cases they may be exempt because they’re considered public service announcements.

Violations of the disclosure requirement incur a $1,000 fine for the first time and jump to $5,000 for subsequent instances.