New York Implements AI Advertising Disclosure Law Amid Federal-State Regulatory Clash
New York has become the first state to require advertisers to disclose the use of AI-generated performers in advertisements. On December 11, 2025, Governor Kathy Hochul signed legislation including bills S.8420-A/A.8887-B, which mandates conspicuous disclosure of synthetic AI performers, and S.8391/A.8882, which prohibits using a deceased performer's likeness without consent from the estate.
Governor Hochul framed these measures as steps to ensure transparency in ad campaigns that use AI-generated imagery. The Screen Actors Guild‐American Federation of Television and Radio Artists (SAG-AFTRA) supports the laws and has advocated for broader protections, including a federal No Fakes Act. The union referenced a 2023 strike settlement that introduced consent and compensation terms valued at over $1 billion.
Simultaneously, former President Donald Trump signed an executive order directing the Department of Justice to challenge state AI regulations on grounds of federal preemption. The order also warns that states imposing onerous AI rules could lose eligibility for the federal BEAD broadband funding program. It establishes an AI Litigation Task Force and ties state-level AI regulation to federal funding eligibility, signaling a regulatory showdown between federal and state authorities.
Analysts suggest enforcement of New York's law will primarily impact large advertisers and major studios, prompting more caution in using generative AI, although deepfake content is expected to continue circulating online. This development illustrates ongoing debates over whether AI regulation should be managed nationally or by individual states and reflects a broader push for comprehensive federal protections against synthetic media misuse.
