Pennsylvania will require labels on AI-generated ads

Key points

• Pennsylvania Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act into law on Thursday.
• The law requires any ad significantly modified or generated by AI to include a label in the same format as the ad.
• The law contains loopholes, including subjective terms like 'significantly modified' and exemptions for parody, satire, and evidently fictional content.

Pennsylvania Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act into law on Thursday. The law requires disclosures on ads that are generated or significantly modified by artificial intelligence.

The requirement applies to any ad format, including still images, video, audio, and text. It covers ads from large companies as well as small businesses, and applies regardless of where the ad was created. Pennsylvania is one of the first states to enact such a requirement.

Scope of the law

The law mandates that any ad 'has been significantly modified or generated by artificial intelligence' must include a label in the same format as the ad itself. This means TV commercials and other ads expected to air in Pennsylvania would need disclosures even if produced elsewhere.

The law leaves several loopholes. The term 'significantly modified' is subjective, and there is a carve-out for 'parody, satire, commentary or criticism,' as well as for anything 'evidently fictional.' The meaning of 'evidently fictional' is unclear.

Additionally, the wording suggests only content that 'uses synthetic content in a manner that creates a false consumer perception' about a product or service would require a disclosure. This leaves open questions about what qualifies as 'false' and who makes that determination.

has been significantly modified or generated by artificial intelligence

— the law

Comment from sponsor

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