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New Regulations in New York: AI in Advertising

Introduction to the New Legislation

On Thursday, New York Governor Kathy Hochul made headlines by signing two significant bills aimed at regulating the use of artificial intelligence in advertising. The first bill, known as S.8420-A/A.8887-B, stands out as a pioneering measure in the United States, mandating that advertisers disclose when an ad features AI-generated individuals. Governor Hochul described this legislation as a “common sense” approach that promises to enhance transparency and consumer trust. In conjunction with this bill, another measure was signed requiring businesses to obtain consent from heirs or executors if they wish to utilize the name or likeness of a deceased individual for commercial endeavors.

Impact on the Entertainment Industry

These new laws hold particularly crucial implications for the film and entertainment sectors, where the use of AI technologies is becoming increasingly prevalent. With concerns about proper compensation and rights for actors and creators taking center stage, the introduction of these regulations is timely. In a joint announcement alongside Governor Hochul, Duncan Crabtree-Ireland, the executive director of SAG-AFTRA, expressed his support and enthusiasm. He noted that these newly established protections stem from the collaboration of artists, lawmakers, and advocates who rallied to address the immediate challenges presented by the unchecked proliferation of AI technologies.

Disclosure Requirements and Compliance

The disclosure bill stipulates that any advertisement featuring a synthetic avatar must conspicuously indicate that it does not represent a genuine human being. This clear labelling is designed to protect consumers from potential deception when interacting with advertisements. In addition, the legislation regarding the use of deceased individuals’ likenesses is particularly relevant in today’s digital age. While there is no overarching federal right of publicity, this state law aims to address the inconsistencies arising from a patchwork of state regulations that often overlook the advancements in generative AI.

There are exceptions to the disclosure requirement. Notably, if the advertisement promotes an “expressive work”—such as a movie, television show, or video game—and the AI avatar matches its role within that work, the disclosure may not be necessary. Reports from New York Focus indicate that numerous state agencies have already employed AI to craft advertisements. In some instances, these agencies may be exempt from disclosure due to being categorized as public service announcements, further complicating the regulatory landscape.

Penalties for Non-Compliance

Violating the disclosure requirement comes with financial consequences. The initial breach will incur a fine of $1,000, with penalties escalating to $5,000 for repeated violations. This clearly establishes that adherence to the new law is not merely a suggestion but a legal obligation that must be taken seriously by advertisers.

The Role of AI legalese decoder

In the evolving landscape of advertising regulations, the AI legalese decoder emerges as an essential tool for businesses aiming to navigate these changes effectively. It simplifies complex legal jargon into understandable language, ensuring that companies comprehend their responsibilities under the new laws. By utilizing this tool, advertisers can be informed about the implications of using AI-generated content, helping them to make compliant decisions and avoid hefty fines.

In a time where transparency and consumer protection are paramount, integrating resources like the AI legalese decoder can shield businesses from potential pitfalls while enabling them to harness AI technologies responsibly. As the intersection of law and technology continues to evolve, resources that demystify legal language will be invaluable for creatives and advertisers alike.

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