Happy New Year, TCPA World! We may be leaving 2025, but the hottest topic remains in 2026…Artificial Intelligence. And, well, it happens! New York State has officially updated its General Commercial Code to regulate the use of artificial intelligence in advertising. Anyone using AI as part of their marketing strategy should be aware of this law.
On December 11, 2025, the Governor signed Senate Bill S8420A, creating a new compliance framework for advertisers that utilize generative AI. This bill would amend Section 396-b of the General Commercial Code to require transparency when specifically defined digital assets are used in commercial content.
The scope of the regulation depends on three interlocking definitions set out in the text.
The bill defines “artificial intelligence” as “a machine-based system that is capable of making predictions, recommendations, and decisions that affect real or virtual environments for a set of human-defined objectives, that perceives real and virtual environments using machine-based and human-based inputs, abstracts such perception into models through automated analysis, and formulates information or options for action using model inference,” which explicitly includes large-scale language models and computer vision. Additionally, Congress 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 produce derived synthetic content, including, but not limited to, images, video, audio, text, and other digital content.”
These definitions set the stage for the main subject of regulation: “synthetic performers.” The law defines the term as “a digitally created asset that is created, reproduced, or modified by a computer using generative artificial intelligence or software algorithms for the purpose of creating the impression that the asset involves the audiovisual and/or visual performance of a human performer who is not recognizable as an identifiable natural person.”
The new obligations apply directly to the creators of commercial ads, not the platforms hosting them. Any person engaged in the trade of real estate or services who produces or produces advertisements for commercial purposes must conspicuously disclose the presence of synthetic performers in the advertisement itself. This requirement is triggered if the creator has actual knowledge that such performers are included. The law provides a safe haven for broadcasters and publishers by specifying that the law does not apply to newspapers, magazines, television networks, streaming services, and billboard operators who distribute advertisements unless they create the advertisements.
There are some exceptions to the disclosure requirements. Because the definition of “synthetic performer” relies on visual or audiovisual performance; Audio-only ads, such as radio spots and podcasts, are exempt from the rule.
The law also exempts situations where artificial intelligence is used solely for language translation of human performers.
Additionally, the law also includes an exemption for expressive works to avoid conflicts with the entertainment industry. Advertisements for movies, television shows, streaming content, video games, and documentaries do not require disclosure as long as the use of synthetic performers in the advertisement is consistent with their use in the underlying work.
Enforcement of the new statute is structured through civil penalties. The first violation carries a $1,000 civil penalty, and subsequent violations carry a $5,000 civil penalty. The Act does not contain an express provision creating a private right of action for consumers to bring direct action. Plaintiffs may seek to use these violations as the basis for broader deceptive trade practice claims under Section 349 of the General Commercial Code, which itself frames violations as regulatory violations subject to fines.
The law takes effect 180 days after signing, with a compliance deadline of 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 takes effect.
As always, we're here to help with all your AI compliance needs.
See you in 2026!!
