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New York Law Mandates AI Avatar Disclosure in Ads

â–¼ Summary

– New York Governor Kathy Hochul signed a bill requiring advertisers to disclose if an ad includes AI-generated people, which is described as the first such law in the US.
– A separate bill signed by Hochul requires consent from heirs or executors to use a deceased person’s likeness for commercial purposes.
– These laws are particularly relevant to the film industry and actors, addressing pressing concerns about AI usage and compensation.
– The disclosure law includes exceptions for “expressive works” like movies or video games and imposes fines for violations, starting at $1,000.
– This state-level action occurs as former President Donald Trump appears poised to try to limit states’ ability to regulate AI, causing bipartisan concern.

A new law in New York now mandates that advertisers must clearly disclose when they use AI-generated people in their promotional materials. Governor Kathy Hochul signed the groundbreaking legislation, which is described as a common-sense measure to boost transparency and safeguard consumers from deceptive synthetic media. This move directly addresses growing concerns over the ethical use of artificial intelligence in marketing and entertainment, setting a precedent for other states to follow. A companion bill was also enacted, requiring explicit consent from heirs or executors before a deceased individual’s name or likeness can be used commercially.

These new regulations hold particular significance for the film industry and actors, who have been vocal about the threats and opportunities presented by AI. The issue of AI usage and fair compensation has become a central point of contention in recent labor negotiations. Duncan Crabtree-Ireland, the executive director of SAG-AFTRA, praised the legislative action in a joint statement with the governor. He emphasized that the protections emerged from a collaborative effort between artists, lawmakers, and advocates to address the tangible risks of unregulated AI.

The disclosure bill specifies that any advertisement featuring a synthetic avatar that does not represent a real person must include a “conspicuous” notice alerting the public. There are, however, notable exceptions. No disclosure is required if the AI avatar appears in promotional material for an expressive work, such as a film, television series, or video game, and its use is consistent with its role in that creative project. Reports indicate that some state agencies have already utilized AI in their advertising campaigns, though they may be exempt if the content is classified as a public service announcement.

Enforcement of the rule carries financial penalties. A first violation will result in a $1,000 fine, with subsequent infractions incurring a steeper penalty of $5,000. The law concerning the likenesses of the deceased strengthens New York’s existing right of publicity statutes. This area of law remains a complex patchwork across the country, with many state laws not yet updated to account for the capabilities of modern generative AI tools.

This legislative development in New York arrives amid a broader national debate over AI governance. There is growing political tension as former President Donald Trump has signaled a potential push to limit states’ authority to regulate artificial intelligence, including the possibility of a moratorium on state-level AI laws. While his specific plans remain unclear, his vague but emphatic social media posts on the topic have drawn bipartisan concern from lawmakers who view state action as a necessary step in the absence of comprehensive federal legislation.

(Source: The Verge)

Topics

ai regulation 95% advertising disclosure 90% new york legislation 88% AI Transparency 85% synthetic avatars 85% consumer protection 82% state ai laws 80% right of publicity 80% film industry impact 78% deceased likeness rights 75%