Artificial intelligence regulation shifted dramatically on December 11, 2025, as New York Governor Kathy Hochul signed legislation requiring advertisers to disclose synthetic performers in commercials while the White House issued an executive order seeking to halt state-level AI regulation, according to law firm Davis+Gilbert.
New York’s legislative bills S.8420-A/A.8887-B amend the state’s General Business Law § 396 b to require explicit disclosure when AI-generated “synthetic performers” appear in advertisements. The law defines synthetic performers as digital assets created with generative AI that look like humans performing but do not represent any identifiable natural person.
The legislation takes effect in June 2026 and applies to entities that produce or create advertisements featuring synthetic performers, including advertisers and their agencies. Under the law, these entities must “conspicuously disclose” when synthetic performers appear in advertising they produce or create, in any media where that advertisement appears.
According to Davis+Gilbert, the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) talent union strongly supported the legislation. The union has adopted requirements to protect professional performers from being replaced by AI-generated synthetic performers or replicated using generative AI technologies. The most recently issued SAG-AFTRA Commercials Contract, collectively bargained with the Joint Policy Committee representing advertisers and agencies, discourages advertisers from using synthetic performers when the primary purpose is to save on talent costs.
Video-generating AI applications, including OpenAI’s Sora, have become more popular, raising concerns that advertisers would use such tools instead of hiring actual performers.
Law Exemptions and Penalties
The disclosure requirement contains several exceptions; it does not apply to audio advertisements or when generative AI is used solely to translate a human performer’s language. The law also exempts advertisements and promotional materials for expressive works such as television, movies, and video games, provided the use of synthetic performers in advertising materials remains consistent with the actual content.
The law does not apply to media providers that carry advertising and will not affect protections under Section 230 of the Communications Decency Act, which shields online platforms from liability for user-provided content.
Advertisers and agencies violating the law face a civil penalty of $1,000 for a first violation and $5,000 for subsequent violations.
White House Executive Order Seeks Federal Framework
Hours after Gov. Hochul signed the New York bills, President Trump issued an executive order declaring: “It is the policy of the United States to sustain and enhance the United States’ global AI dominance through a minimally burdensome national policy framework for AI.”
As Davis+Gilbert reports, the executive order aims to overturn or halt the enforcement of state AI laws that conflict with the administration’s policy priorities. The order notes that state-by-state regulation of AI “creates a patchwork of 50 different regulatory regimes that makes compliance more challenging.”
The order encourages Congress to work with the executive branch to establish a national framework for regulating AI that imposes minimal burden on companies, prevents censorship, protects children and communities, and respects copyright.
Federal Enforcement Mechanisms
Until a national AI law is established, the executive order demands that the Attorney General establish a task force to challenge state AI laws that “unconstitutionally regulate interstate commerce, are preempted by existing Federal regulations, or are otherwise unlawful in the Attorney General’s judgment.”
The Commerce Department must publish an evaluation of existing state AI laws that are “onerous” and conflict with federal policy priorities by March 2026.
States deemed to have “onerous AI laws” will be ineligible to receive certain federal funds for universal broadband and high-speed internet infrastructure, as well as other discretionary federal grants.
The executive order also requires the Federal Trade Commission (FTC) to issue a policy statement regarding whether state laws that “require alterations to the truthful outputs of AI models” may violate the FTC’s prohibitions on unfair and deceptive acts and practices. The FTC should consider adopting a federal “reporting and disclosure standard for AI models” to preempt conflicting state laws, according to Davis+Gilbert.
The law firm reports that the executive order will likely face legal challenges, as lawmakers, state attorneys general, and industry groups question its legality and enforceability absent congressional action.
New York’s synthetic performer disclosure law aligns with emerging norms encouraging disclosure when photo-realistic synthetic people appear in consumer-facing media. The law aligns with SAG-AFTRA policy goals, the transparency policies of many social media platforms, and similar disclosure requirements that the European Union AI Act will impose in August 2026.
Davis+Gilbert advises that advertisers should continue adhering to applicable state AI laws and prepare for compliance with newly enacted AI laws, including New York’s disclosure law.
Jonathan is a South African content creator, photographer and videographer with 25 years of experience in journalism and print media design. He is interested in new developments in AI content creation and covers a broad spectrum of topics within the creator economy.
Artificial intelligence regulation shifted dramatically on December 11, 2025, as New York Governor Kathy Hochul signed legislation requiring advertisers to disclose synthetic performers in commercials while the White House issued an executive order seeking to halt state-level AI regulation, according to law firm Davis+Gilbert.
New York’s legislative bills S.8420-A/A.8887-B amend the state’s General Business Law § 396 b to require explicit disclosure when AI-generated “synthetic performers” appear in advertisements. The law defines synthetic performers as digital assets created with generative AI that look like humans performing but do not represent any identifiable natural person.
The legislation takes effect in June 2026 and applies to entities that produce or create advertisements featuring synthetic performers, including advertisers and their agencies. Under the law, these entities must “conspicuously disclose” when synthetic performers appear in advertising they produce or create, in any media where that advertisement appears.
According to Davis+Gilbert, the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) talent union strongly supported the legislation. The union has adopted requirements to protect professional performers from being replaced by AI-generated synthetic performers or replicated using generative AI technologies. The most recently issued SAG-AFTRA Commercials Contract, collectively bargained with the Joint Policy Committee representing advertisers and agencies, discourages advertisers from using synthetic performers when the primary purpose is to save on talent costs.
Video-generating AI applications, including OpenAI’s Sora, have become more popular, raising concerns that advertisers would use such tools instead of hiring actual performers.
Law Exemptions and Penalties
The disclosure requirement contains several exceptions; it does not apply to audio advertisements or when generative AI is used solely to translate a human performer’s language. The law also exempts advertisements and promotional materials for expressive works such as television, movies, and video games, provided the use of synthetic performers in advertising materials remains consistent with the actual content.
The law does not apply to media providers that carry advertising and will not affect protections under Section 230 of the Communications Decency Act, which shields online platforms from liability for user-provided content.
Advertisers and agencies violating the law face a civil penalty of $1,000 for a first violation and $5,000 for subsequent violations.
White House Executive Order Seeks Federal Framework
Hours after Gov. Hochul signed the New York bills, President Trump issued an executive order declaring: “It is the policy of the United States to sustain and enhance the United States’ global AI dominance through a minimally burdensome national policy framework for AI.”
As Davis+Gilbert reports, the executive order aims to overturn or halt the enforcement of state AI laws that conflict with the administration’s policy priorities. The order notes that state-by-state regulation of AI “creates a patchwork of 50 different regulatory regimes that makes compliance more challenging.”
The order encourages Congress to work with the executive branch to establish a national framework for regulating AI that imposes minimal burden on companies, prevents censorship, protects children and communities, and respects copyright.
Federal Enforcement Mechanisms
Until a national AI law is established, the executive order demands that the Attorney General establish a task force to challenge state AI laws that “unconstitutionally regulate interstate commerce, are preempted by existing Federal regulations, or are otherwise unlawful in the Attorney General’s judgment.”
The Commerce Department must publish an evaluation of existing state AI laws that are “onerous” and conflict with federal policy priorities by March 2026.
States deemed to have “onerous AI laws” will be ineligible to receive certain federal funds for universal broadband and high-speed internet infrastructure, as well as other discretionary federal grants.
The executive order also requires the Federal Trade Commission (FTC) to issue a policy statement regarding whether state laws that “require alterations to the truthful outputs of AI models” may violate the FTC’s prohibitions on unfair and deceptive acts and practices. The FTC should consider adopting a federal “reporting and disclosure standard for AI models” to preempt conflicting state laws, according to Davis+Gilbert.
The law firm reports that the executive order will likely face legal challenges, as lawmakers, state attorneys general, and industry groups question its legality and enforceability absent congressional action.
New York’s synthetic performer disclosure law aligns with emerging norms encouraging disclosure when photo-realistic synthetic people appear in consumer-facing media. The law aligns with SAG-AFTRA policy goals, the transparency policies of many social media platforms, and similar disclosure requirements that the European Union AI Act will impose in August 2026.
Davis+Gilbert advises that advertisers should continue adhering to applicable state AI laws and prepare for compliance with newly enacted AI laws, including New York’s disclosure law.
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