On December 11, 2025, New York Governor Kathy Hochul signed into law two bills governing the use of artificial intelligence (AI) in advertising. The governor’s office described the bills as “first-in-the-nation legislation to protect consumers and boost AI transparency in the film industry.” Both bills unanimously passed through the New York Legislature.
The first bill, S.8420-A/A.8887-B, requires all persons producing or creating advertisements that include AI-generated synthetic performers to conspicuously disclose that fact. AI-generated synthetic performances are digitally created assets that are reproduced or modified by a computer using generative AI and intended to create the impression of a human performer. The legislation does not apply to audio advertisements, AI used solely for language translation, or advertisements for expressive works, which include movies, TV shows, and other similar audiovisual works, so long as the use of a synthetic performer in any ad is consistent with its use in the expressive work. It also does not apply to media providers that carry advertising.
Any person who, for a commercial purpose, produces or creates an advertisement must conspicuously disclose that a synthetic performer is in the ad, if they have actual knowledge of the synthetic performer’s presence. Failure to do so carries a penalty of $1,000 for the first violation, and $5,000 for all subsequent violations. This is the first bill passed by any state to require such disclosures. As with many AI laws, other states will likely use the law as a model for similar legislation.
Additionally, S.8391/A.8882 expands New York’s post-mortem right of publicity law to require consent from heirs or executors to use the name, image, or likeness (NIL) of a deceased individual for commercial purposes. As a result, businesses must obtain consent from performers or their estates if they plan to use their likeness in advertising.
Although presented as consumer protection measures, a union representing actors and other performers was a driving force behind both bills.
Takeaway
As AI adoption accelerates across industries, state governments are moving quickly to regulate its use — often targeting what they view as abusive, high-risk, or opaque AI practices. This wave of novel, state-level AI legislation means that businesses may find themselves subject to new compliance obligations in ways they did not anticipate, including businesses that only minimally deploy AI technologies. And despite recent federal attempts to supersede state-level AI legislation, companies should anticipate continued proactivity and experimentation in state AI laws and proactively monitor legal developments to stay ahead of emerging requirements. Regular consultation with key stakeholders, including experienced outside counsel, in the development of effective internal policies and procedures is crucial to mitigating regulatory risk in the AI space.
