Proposed AI Ad Rules Face Resistance From Broadcasters, Ad Agencies.

The One Big Beautiful Bill Act (H.R. 1) backed by President Trump runs 1,038 pages. The spending measure was approved by House Republicans last month, and it is what appears on page 278 that is something that has the eye of the broadcast and advertising industry alike. If passed, it would enact a 10-year moratorium on state laws regulating artificial intelligence.

Broadcasters are especially focused on proposals targeting the use of AI in advertising, like a pair of bills that are advancing in New York. They have prompted the New York State Broadcasters Association (NYSBA) to take the rare step of taking to airwaves to advocate against the proposals.

The bills (S.1228C/A.606B) would create a “synthetic performer disclosure requirement” that will require any AI voice in a radio or TV spot, or an AI-generated image in a TV, print or digital ad to be clearly labeled so that the average person will be able to quickly decipher the person isn’t real. Failure to properly label a synthetic performer will result in fines of $1,000 for the first violation, and up to $5,000 for subsequent violations.

State Sen. Michael Gianaris (D-Queens) says the increase in the use of generative AI across all forms of media necessitates action. “Without notice that the content one is viewing is not real, synthetic performers and manipulated media contribute to a false news narrative and undermine one's ability to accurately distill fact from fiction,” he writes in a sponsor’s memo to fellow lawmakers.

But New York broadcasters are fighting the proposal, saying it would make advertising more expensive for small businesses, while also effectively preventing radio and TV stations from using new technology to compete against Big Tech. Since AI is often used to produce the localization tags in spots for each market, NYSBA says local radio stations will be especially hurt if the law passes because advertisers will not buy time on a station if they are required to place lengthy labels on every radio spot. It also points out that stations receive thousands of advertisements per week from national networks and programming syndicators. Not only would it be impossible to pre-screen them all, NYSBA says local stations may also be bound to air them under contract. The association is also worried that the definition of AI in the proposed law is so expansive, it could apply to just about any advertisement that was stored or modified in some way by a computer.

To help push back against the proposal, NYBSA has created ads for radio and television that it asking members to air. The spots urge listeners to contact their local lawmakers and urge them to reject the bills.

Broadcasters aren’t along in sounding the alarm. The American Association of Advertising Agencies is also going on record opposing the effort. While the legislation aims to promote transparency for consumers, the 4A’s says the unintended consequences would be “substantial” for advertising. It says it would inject “compliance uncertainty” into the advertising process, burdening brands and their agencies, and undermining creative and technological innovation.

“There are plenty of legitimate use cases for AI-generated advertising, and the vast majority of brands and agencies have absolutely no intention of deceiving or misleading their target audiences with content developed or altered using GenAI tools,” the 4A’s writes in a letter to lawmakers.

It too argues that not only is the definition of AI overly broad, but it would include a wide array of long-standing post-production practices that have been standard for decade. The 4A’s says the required labels would also inundate consumers with repetitive, overly cautious notices. By “overregulating and over-labeling,” the ad group says a well-intentioned measure would turn into “a source of misinformation and consumer fatigue.”

The National Association of Broadcasters and the Association of National Advertisers have also spoken out against the New York effort and AI regulations related to advertising overall. When the Federal Communications Commissions was considering an AI disclosure rule targeted at political ads last year, the NAB pointed out that the technology is becoming a tool for broadcasters. “Generative AI is not the enemy,” it said in a filing, calling it the equivalent of a studio microphone.

New York’s legislature previously considered proposals to mandate AI labels in its two previous sessions, but none of the legislation got past committee. This time, the bills have moved onto the floors of the Senate or Assembly. Time is short, however. The legislature’s session is expected to draw to a close on June 15, which will make the next few weeks critical in its latest effort.