Pennsylvania Signs Law Requiring Labels on AI-Generated Ads

Pennsylvania Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act into law on Thursday. The law requires a disclosure on advertising that has been significantly modified or generated by AI, according to The Verge.

What the law requires

The rule covers any ad that “has been significantly modified or generated by artificial intelligence.” That includes still images, video, audio and text. The label must appear in the same format as the ad itself. The Verge notes that this reaches TV commercials from large companies as well as small business flyers, such as a restaurant’s promotion for wing specials.

The disclosure requirement applies regardless of where an ad was created. The Verge points out that commercials made elsewhere may therefore carry the label if they are also expected to air in Pennsylvania.

State Senator Nick Pisciottano introduced the bill.

Why it matters

The Verge describes Pennsylvania as one of the first states to require disclosures on AI content. Because the law follows the ad into Pennsylvania rather than the place it was made, its reach may extend beyond the state’s borders.

The Verge also flags several gaps in the text:

• What counts as “significantly modified” is subjective.
• The law exempts “parody, satire, commentary or criticism,” along with anything “evidently fictional.” The meaning of “evidently fictional” is unclear.
• The wording suggests a disclosure is required only for content that “uses synthetic content in a manner that creates a false consumer perception” about a product or service.

That last condition raises the question of what qualifies as “false” and who decides, according to The Verge.

What we don’t know yet

The law’s text leaves open how “significantly modified” and “evidently fictional” will be interpreted in practice, and who will make that call. Pisciottano’s office did not immediately respond to The Verge’s request for comment, so there is no explanation yet of how the sponsor reads these terms.