Happy New Year’s Eve TCPAWorld! We might be leaving 2025, but the hottest topic isn’t changing in 2026…artificial intelligence. And well, I’ll be! New York has officially updated its General Business Law to regulate the use of artificial intelligence in advertising that all of you utilizing AI as part of your marketing strategy need to know about this one.
On December 11, 2025, the Governor signed Senate Bill S8420A into law, creating a new compliance framework for advertisers utilizing generative AI. The bill amends Section 396-b of the General Business Law and mandates transparency when specifically defined digital assets are used in commercial content.
The scope of the regulation relies on three interlocking definitions provided in the text.
The bill defines “Artificial Intelligence” as “a machine-based system that can, for a given set of human-defined objectives, make predictions, recommendations, or decisions influencing real or virtual environments, and that uses machine- and human-based inputs to perceive real and virtual environments, abstract such perceptions into models through analysis in an automated manner, and use model inference to formulate options for information or action”–explicitly including large language models and computer vision. The legislature further defines “Generative Artificial Intelligence” as “a class of artificial intelligence models that are self-supervised and emulate the structure and characteristics of input data to generate derived synthetic content, including, but not limited to, images, videos, audio, text, and other digital content.”
These definitions set the stage for the primary subject of the regulation: “Synthetic Performer.” The statute defines this term as “a digitally created asset created, reproduced, or modified by computer, using generative artificial intelligence or a software algorithm, that is intended to create the impression that the asset is engaging in an audiovisual and/or visual performance of a human performer who is not recognizable as any identifiable natural person.”
The new mandates apply directly to the creators of commercial advertisements rather than the platforms hosting them. Any person engaged in the business of dealing in property or services who produces or creates an advertisement for a commercial purpose must conspicuously disclose the presence of a synthetic performer within the advertisement itself. This requirement is triggered when the creator has actual knowledge that such a performer is included. The statute explicitly provides a safe harbor for broadcasters and publishers, stating that the law does not apply to the newspapers, magazines, television networks, streaming services, or billboard operators that disseminate the ads, provided they did not create the advertisement.
There are several exemptions to the disclosure requirement. Because the definition of a “synthetic performer” hinges on visual or audiovisual performance, audio-only advertisements such as radio spots and podcasts are not subject to the rule.
The law also exempts situations where artificial intelligence is used solely for the language translation of a human performer.
Additionally, the law includes an exemption for expressive works to avoid conflict with the entertainment industry. Advertisements for motion pictures, television programs, streaming content, video games, and documentaries do not require a disclosure, provided the use of the synthetic performer in the advertisement is consistent with its use in the underlying work.
Enforcement of the new statute is structured through civil penalties. A first violation results in a civil penalty of $1000, while any subsequent violation carries a penalty of $5000. The statute does not contain an express provision creating a private right of action for consumers to sue directly. While plaintiffs may attempt to leverage these violations as a predicate for broader deceptive trade practice claims under General Business Law Section 349, the statute itself frames noncompliance as a regulatory offense subject to fines.
This Act takes effect 180 days after signing–placing the compliance deadline on June 9, 2026.
Advertisers targeting New York consumers should begin auditing their creative assets to distinguish between human talent and synthetic performers before the law goes live.
As always, we are here for all of your AI compliance needs!
See you all in 2026!! 🙂
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