Pennsylvania Signs Law Requiring Labels on AI-Generated Ads

Pennsylvania Governor Josh Shapiro on Thursday signed the Artificial Intelligence Deceptive Advertising Act, making the state one of the first in the US to require disclosures on AI content in advertising.

The law covers any ad that "has been significantly modified or generated by artificial intelligence." That includes still images, video, audio and text, and the label must appear in the same format as the ad itself. It applies equally to television commercials from large corporations and to a local restaurant's crowded flyer promoting its wing specials.

Reach beyond state lines

The labeling requirement applies regardless of where an ad was created. As a result, viewers in other states may start seeing AI disclosures on commercials that are also expected to air in Pennsylvania. For national advertisers, that could make the state's rule a practical standard well beyond its borders.

Loopholes and open questions

The law leaves considerable room for interpretation. What counts as "significantly modified" is subjective. There is a carve-out for "parody, satire, commentary or criticism," as well as for anything "evidently fictional," a phrase that is not clearly defined.

The wording also suggests that a disclosure is required only when an ad "uses synthetic content in a manner that creates a false consumer perception" about a product or service. That raises further questions about what qualifies as "false" under the law and who will make that call.

The office of State Senator Nick Pisciottano, who introduced the bill, did not immediately respond to a request for comment.

For advertisers, the practical effect will depend on how those vague terms are interpreted and enforced. For consumers, the law is a step toward knowing when synthetic content is being used to sell them something, even if its gaps may limit how often labels actually appear.