By Jonathan Baker Since generative AI entered the mainstream, businesses, consumers, and regulators have debated its role in everyday life. Nowhere is that debate more visible than advertising, where a growing number of states are introducing rules that govern AI-generated content. California Joins New York in Laying Down the Law At the end of 2025, New York Governor Kathy Hochul signed two laws to demand transparency and consent in any ad content that was either completely created or altered by AI. These laws went into effect this past June. Last week, California Governor Gavin Newsom signed a bill requiring disclosures on video and audio advertisements that use AI-generated performers. Going a step further, the bill prohibits the continued running of non-compliant advertisements. First New York, then California. How soon before other states put their own laws regarding AI usage in video and audio ads into effect? As pointed out in EMARKETER, advertisers throughout the nation should not play a waiting game but take proactive measures now. What should they take into consideration? Becoming AI Compliant in Advertising is Not an Uphill Battle Although advertisers will need to pay closer attention to evolving regulations, compliance may be less burdensome than many expect. This is not, however, an “advertisers versus consumers” situation. Citing findings in MediaScience, EMARKETER noted how ads labelled “AI-generated” will not impact their performance. Complementing this, 57 percent of consumers from the Gen Z and Millennial audiences simply want disclosures for any AI-generated or altered video ads. In short, the concern is not whether ads are created with AI, but the transparency (or lack thereof) surrounding them. With this in mind, advertisers not yet impacted by compliance laws would do well to begin placing disclaimers alerting viewers to any AI-generated content before legality becomes an issue. What Should Advertisers Do as the Ripple Effect of Regulation Travels? As regulations continue evolving from state to state, staying compliant may become increasingly complex for brands operating across multiple markets. Having experienced partners who understand both AI’s capabilities and its regulatory implications can help advertisers stay ahead of those changes. That’s why many advertisers are looking for agencies that combine AI expertise with a “people-first” approach. Keeping the Human Factor in Focus Part of the push for increased AI regulation stems from concerns about misuse, misleading content, and a growing volume of low-quality AI-generated material, including the proliferation of AI slop and broader concerns about technology overshadowing human creativity. EGC Group fully understands these concerns and remains vigilant in keeping the focus on advertising professionals and their audiences (i.e., human beings). If you are concerned about AI compliance in your video and audio ad content, contact us. We will help you navigate the changing rules so that you, your target audience, and any prospective customers will have peace of mind. P.S. For further insights into the value of transparency, you might like View from YouTube: Disclose AI-Created Content.
