Pennsylvania will require labels on AI-generated ads

Pennsylvania’s AI‑Labeling Law: What It Means for Advertisers

Pennsylvania has become one of the first U.S. states to require explicit disclosures on advertisements that are created or heavily modified by artificial intelligence. Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act into law, mandating that any ad—whether a static image, video, audio clip, or text—display a label indicating its AI origin. The label must appear in the same format as the ad itself, ensuring viewers see the disclosure in context.

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Why the Law Was Passed

The rapid rise of AI‑generated content has blurred the line between authentic and synthetic media. Deep‑fakes, AI‑crafted copy, and generative‑art tools enable marketers to produce polished ads at unprecedented speed and low cost. Policymakers worry that consumers could be misled about the source of a product’s claims, especially when AI is used to fabricate testimonials, exaggerate features, or create hyper‑realistic visuals. By requiring a label, Pennsylvania aims to preserve consumer trust and give shoppers a clear signal when they are viewing AI‑enhanced messaging.

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Key Requirements for Advertisers

1. Scope of Coverage – The law applies to any advertisement that is "significantly modified or generated by artificial intelligence." This includes:

- Television commercials and online video ads - Print flyers, billboards, and digital banners - Audio spots on radio or streaming platforms - Text‑based promotions, such as sponsored social‑media posts or email newsletters

1. Label Placement – The disclosure must be integrated into the ad’s visual or auditory format, not tacked on as a separate footnote. For example, a video ad might overlay a semi‑transparent banner reading "AI‑generated content" at the bottom of the screen.
2. Timing – The label must appear whenever the ad is shown in Pennsylvania, regardless of where the ad was produced. This means national campaigns will need a Pennsylvania‑specific version or a universally applied label.
3. Exemptions – The act carves out limited exceptions for:

- Parody, satire, commentary, or criticism - Content that is "evidently fictional" However, the law does not define these terms, leaving room for interpretation.

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Ambiguities and Potential Loopholes

While the intent is clear, the legislation contains several vague elements that could complicate compliance:

• "Significantly Modified" – Determining the threshold for what counts as a substantial AI contribution is subjective. A minor touch‑up using AI‑based background removal might or might not trigger the label requirement.
• "False Consumer Perception" – The act ties the labeling duty to the creation of a false impression about a product or service. Yet, what constitutes a false perception is not precisely defined, potentially leading to disputes over intent versus effect.
• Exemption Boundaries – The "evidently fictional" clause could be exploited by framing promotional content as fictional storytelling, even when it subtly promotes a real product.
• Enforcement Authority – The law does not specify which state agency will oversee compliance or how violations will be penalized, leaving advertisers uncertain about enforcement mechanisms.

These gaps may prompt legal challenges or encourage the development of industry guidelines to fill the interpretive void.

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Practical Steps for Marketers

1. Audit Existing Creative – Review current campaigns to identify any AI‑generated elements. Flag assets that use generative‑image tools, AI‑written copy, or synthetic voiceovers.
2. Develop a Standard Label – Create a reusable disclosure graphic or audio cue that can be seamlessly integrated across media formats. Ensure the design complies with the "same format" requirement.
3. Document Decision‑Making – Keep records of how each piece of content was produced, including the AI tools used and the extent of human oversight. This documentation can support compliance arguments if the label’s necessity is questioned.
4. Train Creative Teams – Educate designers, copywriters, and media buyers on the law’s requirements and the importance of consistent labeling.
5. Monitor Legal Updates – Stay alert for clarifications from Pennsylvania regulators or court rulings that may refine the definitions of "significant modification" and "false perception."

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Looking Ahead

Pennsylvania’s AI Deceptive Advertising Act sets a precedent that other states may follow, potentially leading to a patchwork of labeling requirements across the country. For now, advertisers targeting Pennsylvania audiences should treat the label as a non‑negotiable element of any AI‑enhanced campaign. By proactively integrating clear disclosures, brands can avoid regulatory headaches and maintain consumer confidence in an era where synthetic media is becoming the norm.