New York Governor Kathy Hochul recently signed a bill mandating that advertisers disclose when an advertisement features AI-generated individuals. Known as S.8420-A/A.8887-B, this legislation is reportedly the first of its kind in the United States, aiming to enhance transparency and offer consumer protection. Another bill signed by Hochul requires organizations to obtain consent from heirs or executors before using the name or likeness of deceased individuals for commercial purposes.
These new laws are particularly relevant to the film industry, where concerns about the use of AI and related compensation are prevalent. The SAG-AFTRA union, representing actors, commended the legislation in a joint press release with Hochul. Executive Director Duncan Crabtree-Ireland emphasized the importance of these measures in addressing the risks associated with the unregulated use of AI.
The disclosure bill specifies that advertisements featuring synthetic avatars that do not represent real people must include a conspicuous notice. In contrast, the bill concerning deceased personalities falls within the state’s right of publicity framework, which varies significantly across the United States, as there is no federal standard.
Certain exceptions to the disclosure requirement exist; for instance, ads promoting expressive works like films, television shows, or video games that appropriately feature AI avatars may not need to disclose their use. Reports indicate that some state agencies have utilized AI for ad production, but they might qualify for exemptions as public service announcements.
Violations of the disclosure rule carry penalties, starting with a $1,000 fine for the first offense and increasing to $5,000 for subsequent violations.
Source: https://www.theverge.com/news/842848/new-york-law-ai-advertisements-sag-aftra-labor