New York's New AI Advertising Law Arrives — And It May Affect More Local Businesses Than They Realize
WATERTOWN, N.Y. — A new New York State law that took effect this week is changing the rules for anyone using artificial intelligence-generated people in advertisements.
The law requires advertisers to clearly disclose when a commercial, social media advertisement, or digital promotion uses what the state calls a “synthetic performer” — an AI-generated person designed to look and act like a real human. Advertisers who fail to provide a conspicuous disclosure can face fines of $1,000 for a first violation and $5,000 for subsequent violations.
While the law is being promoted as a consumer transparency measure, it also highlights how quickly AI has moved from science fiction into everyday business.
Just a few years ago, creating a television spokesperson required hiring actors, cameras, lighting crews, makeup artists, editors, and production staff. Today, a local business can generate a realistic spokesperson from a laptop or even a smartphone in a matter of minutes.
That reality is becoming increasingly common across Upstate New York.
Many small businesses, political campaigns, real estate agents, and online publishers have begun experimenting with AI-generated presenters to create video content at a fraction of traditional production costs. The technology can produce realistic news anchors, commercial spokespersons, customer service representatives, and promotional hosts without ever stepping in front of a camera.
Supporters of the law, including the actors union SAG-AFTRA, argue that viewers deserve to know whether the person speaking to them is a real actor or a computer-generated creation. State officials say the law is intended to increase transparency as AI-generated performers become more common across digital advertising and social media.
Critics, however, argue that the law creates additional compliance burdens and uncertainty for advertisers and content creators who are embracing emerging technology. Advertising groups warned during the legislative process that excessive regulation could slow innovation and create confusion for businesses attempting to use AI responsibly.
The law includes several exemptions. Movies, television programs, streaming content, video games, audio-only advertisements, and content where AI is used solely for language translation are generally excluded from the disclosure requirement.
For local publishers and digital creators in Jefferson County, the law serves as another reminder that artificial intelligence is no longer a future technology. It is already here, already being used, and now increasingly being regulated.
Ironically, one of the easiest ways to comply may simply be honesty.
A small disclosure stating that an advertisement contains an AI-generated presenter may be all that is needed to satisfy the law while allowing businesses to continue using technology that can dramatically reduce production costs.
Whether New York’s approach becomes a national model or a cautionary tale remains to be seen. But one thing is certain: if that spokesperson in your next Facebook ad looks a little too perfect, there is now a good chance you’ll be told whether they are real or not.
And in an era when some people can’t tell the difference between reality and the internet anyway, perhaps that’s not the worst idea.
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