Pennsylvania will require labels on AI-generated ads

What happened

Pennsylvania Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act into law on Thursday, requiring labels on ads significantly modified or generated by AI, with disclosures in the same format as the ads. The requirement applies regardless of where an ad was created. However, ambiguous wording around significant modification, false consumer perceptions, and exemptions for evidently fictional content leaves questions about its scope.

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The story so far

Pennsylvania Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act into law, establishing disclosure requirements for ads significantly modified or generated by AI. The law covers still images, video, audio and text, requires disclosures in the same format as the ad, and applies regardless of where the ad was created. The law exempts parody, satire, commentary, criticism and content that is “evidently fictional.” The Verge reported that ambiguity over what counts as significant modification leaves the scope uncertain. It also reported that the wording suggests disclosures may be required only when synthetic content creates a false consumer perception about a product or service.