New York makes history with first-of-its-kind law regulating AI-powered commercials

A new, first-of-its-kind law has taken effect in New York, effectively targeting advertisements that feature an image or video of a person generated using artificial intelligence.

The state’s synthetic performer disclosure law, signed by Gov. Kathy Hochul in December 2025, requires advertisements featuring an AI-generated person to include a clear label indicating the individual is not real.

"In New York, we are setting the rules of the road instead of letting AI run the show," Hochul said in a press release. "Requiring simple, honest disclosure when an ad uses synthetic performers protects consumers, respects our creative workforce and keeps New York at the forefront of responsible innovation."

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AI-generated synthetic performers are digitally created media that look and sound like real people and are often used in marketing campaigns across social media and within digital advertising instead of traditional photoshoots.

Under the new law, first-time violations carry a civil fine of up to $1,000 — with a $5,000 penalty tacked on for every subsequent violation.

However, the law does not provide statutory guidance regarding the wording or delivery of the disclosure, and only requires that the notice be "conspicuous" to consumers.

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AI-generated human avatars at a Graphen Robotics exhibitor booth during The AI Summit New York 2023 in New York, US, on Wednesday, Dec. 6, 2023. (Bing Guan/Bloomberg via Getty Images)

"The rise of deepfakes and AI-generated performers have made it more difficult than ever for consumers to decipher fact from fiction," New York Assemblymember Linda B. Rosenthal, D-Manhattan, said.

"The synthetic performer legislation will alert New Yorkers to the use of synthetic performers in advertisements, providing much-needed transparency to consumers and protections to artists."

According to a report released by the Interactive Advertising Bureau, roughly 83% of advertisement executives have reported that their companies are using AI in the creative process this year — marking a 60% increase from 2024.

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The state’s synthetic performer disclosure law was signed by New York Gov. Kathy Hochul in December 2025. (Adam Gray/Bloomberg via Getty Images)

The law was backed by national performers union SAG-AFTRA, which hailed the decision as a step toward AI regulation and consumer protections as fears surrounding deepfakes grow among creatives.

"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," Duncan Crabtree-Ireland, SAG-AFTRA National Executive Director and Chief Negotiator, said in a previous press release.

"By mandating transparency and securing consent, New York has drawn a bright line that puts human creativity, integrity and trust first," he continued.

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Hochul's office did not immediately respond to Fox News Digital's request for comment.