Pennsylvania will require labels on AI-generated ads: AI regulation

Pennsylvania Governor Josh Shapiro recently enacted a landmark piece of legislation, the Artificial Intelligence Deceptive Advertising Act, on October 24, 2026. This new law mandates that any advertisement "significantly modified or generated by artificial intelligence" must include a clear disclosure label. The move positions Pennsylvania as one of the first states in the nation to tackle the burgeoning challenge of AI-driven deceptive content in advertising, setting a potential precedent for broader regulatory efforts.

The New AI Deceptive Advertising Act

The newly signed Act applies broadly to various advertising formats, encompassing still images, video, audio, and text. Under its provisions, advertisements that incorporate AI technology to a notable degree, described as "significantly modified," are now legally required to carry a label. This mandate spans the entire spectrum of advertising, from high-budget television commercials produced by multinational corporations to simple, localized flyers promoting restaurant specials. Crucially, the disclosure must be presented in the same medium and format as the advertisement itself, ensuring its prominence and accessibility to consumers.

Broad Reach and National Implications

A significant aspect of Pennsylvania's new law is its jurisdictional reach. The legislation dictates that these AI disclosure requirements apply to any advertisement intended to air or be displayed within the state, irrespective of where the content was originally created. This particular clause suggests that advertisers operating on a national scale, or even internationally, may need to incorporate AI labels into their campaigns if those ads are also slated for distribution in Pennsylvania. Such an expansive scope could inadvertently lead to AI disclaimers appearing in other states as well, as companies might adopt a universal labeling standard to simplify compliance.

Ambiguities and Loopholes

Despite its groundbreaking nature, the Artificial Intelligence Deceptive Advertising Act is not without its ambiguities, prompting questions from legal and industry observers. A primary concern centers on the subjective interpretation of what precisely constitutes "significantly modified" by artificial intelligence. The law also includes several specific carve-outs, exempting content created for "parody, satire, commentary or criticism," as well as anything deemed "evidently fictional." However, the criteria for classifying content as "evidently fictional" remain undefined, leaving room for diverse interpretations.

Further compounding these uncertainties, the Act implies that a disclosure would only be necessary if the synthetic content is used in a manner that "creates a false consumer perception" regarding a product or service. This provision introduces additional layers of complexity, as it raises questions about how "false" will be legally defined and which entities will be responsible for making such determinations. These undefined terms could potentially create enforcement challenges and inconsistencies in how the law is applied across different advertising scenarios. State Senator Nick Pisciottano, who initially sponsored the bill, has yet to comment on these specific interpretations.

Looking Ahead: The Future of AI Regulation

Pennsylvania's proactive step into AI regulation highlights a growing awareness among lawmakers about the potential for artificial intelligence to reshape, and potentially mislead, public perception through advertising. As AI capabilities continue to advance rapidly, particularly in generating hyper-realistic media, regulations like this signal a broader legislative trend towards greater transparency. The implementation and enforcement of the Pennsylvania Act will serve as a crucial test case, offering valuable insights for other states and federal bodies considering similar measures to protect consumers while fostering responsible technological innovation.

FAQ

Q: What types of advertisements are covered by Pennsylvania’s new AI Deceptive Advertising Act?

A: The Act covers a wide range of advertising formats, including still images, video, audio, and text. If an ad has been "significantly modified or generated by artificial intelligence," it must carry a disclosure label.

Q: What are some of the key ambiguities or "loopholes" identified in the new law?

A: Critics and observers have pointed to the subjective nature of terms like "significantly modified" and "evidently fictional," which are not clearly defined within the Act. Additionally, there are exemptions for parody, satire, commentary, or criticism, and disclosures may only be required if the AI content creates a "false consumer perception," raising questions about interpretation and enforcement.

Q: Could this Pennsylvania law affect advertisements shown outside of the state?

A: Yes, potentially. The law requires disclosures for any AI-generated ad aired in Pennsylvania, regardless of where it was produced. This means national or international advertisers might opt to apply AI disclosure labels universally to their campaigns to ensure compliance in Pennsylvania, thereby increasing the visibility of these labels in other states as well.