Could Australian Businesses Be Next? The Potential Impact of New York’s AI Ad Disclosure Laws
Artificial intelligence is changing how businesses create advertising content. Companies can now generate campaign imagery, virtual influencers, and digital brand ambassadors at speed. However, AI ad disclosure laws are creating a new question for businesses: how should they tell audiences when the “person” featured in an advertisement was created using technology?
The conversation around responsible AI adoption is also gaining momentum in Australia. Prime Minister Anthony Albanese recently highlighted the importance of embracing the opportunities presented by artificial intelligence, while ensuring it is developed and used in a way that benefits Australians.
As businesses explore how AI can support creativity, productivity and innovation, transparency is becoming increasingly important. Audience expectations are also changing as AI-generated content becomes harder to distinguish from content featuring real people.
New York’s introduction of legislation requiring advertisers to disclose when AI-generated “synthetic performers” appear in advertising has placed a spotlight on AI-driven campaigns. While the rules currently apply overseas, AI ad disclosure laws could signal a broader global shift towards greater transparency around AI-generated content.
AI-generated influencers, virtual brand ambassadors and synthetic spokespersons are already being explored across digital campaigns. These technologies give businesses new ways to experiment with creative formats and engage audiences. However, as their use grows, businesses will also need to consider how clearly they communicate the role of AI.
Shelley Friesen, Founder of Melbourne Social Co and ATTN.CTRL, says “Australian businesses should view New York’s legislation as an early indicator of where advertising standards are heading globally. AI-generated talent is becoming increasingly realistic, and businesses have an opportunity to think strategically about how they introduce this technology to audiences. Transparency will be critical in building trust as consumers become more aware of how content is created.”
New York’s AI Ad Disclosure Laws Could Shape Advertising
The introduction of synthetic performer laws in New York reflects a broader conversation about artificial intelligence in advertising. As AI becomes more advanced, governments, industry bodies and consumers are seeking greater clarity about when technology has generated or altered content.
Australia has not introduced equivalent requirements. However, developments in other major markets could influence expectations locally.
Businesses operating across multiple markets, such as ATTN CTRL, may therefore look to establish consistent approaches for communicating how they create and use AI-generated content. Developing those standards early could also make it easier to respond as regulations and consumer expectations evolve.
AI Ad Disclosure Laws Put AI-Generated Talent in Focus
Virtual influencers and AI-generated brand ambassadors are creating new opportunities for businesses to develop digital content. Unlike traditional talent, businesses can adapt AI-generated characters quickly, use them across multiple platforms and develop them for different creative concepts and audiences.
That flexibility makes synthetic talent attractive for brands looking to scale content production. However, convenience does not remove the need for clear communication.
As adoption grows, businesses will need to consider how AI-generated talent fits their brand identity, creative objectives and audience expectations. Clear disclosure can help businesses use the technology while giving consumers a better understanding of what they are seeing.
Trust and Transparency Are Central to AI Ad Disclosure Laws
Authenticity remains an important part of how consumers connect with businesses, particularly online. As AI-generated people become increasingly realistic, audiences may find it harder to determine whether a person, spokesperson or influencer is real.
Clear communication can help audiences understand the content they are engaging with. It can also help businesses set expectations before disclosure becomes a regulatory requirement in their market.
“Businesses that are upfront about their use of AI will be better positioned as expectations continue to evolve. AI provides exciting creative opportunities, and businesses that pair innovation with transparency can create stronger connections with audiences,” added Friesen.
Why Australian Businesses Should Consider AI Disclosure Standards Now
Australia has not announced equivalent regulation around AI-generated advertising. Even so, businesses can begin preparing by establishing internal guidelines for how and when they use AI-generated talent.
Those guidelines could cover campaign imagery, synthetic spokespersons, virtual influencers and other AI-generated representations of people. Businesses can also determine how they will disclose AI use consistently across websites, advertisements and social media platforms.
AI-generated talent is likely to become a bigger part of the advertising landscape. It offers businesses new ways to create, experiment and connect with audiences.
At the same time, the rise of AI ad disclosure laws overseas shows that transparency is becoming part of the wider discussion around responsible AI use. Australian businesses that consider disclosure early will be better prepared to embrace AI-driven creativity while maintaining meaningful relationships with consumers.
https://melbournesocialco.com.au/
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