AI ad disclosure: what New York, Pennsylvania, the EU and the platforms require

AI ad disclosure is not one rule, and using AI does not by itself mean an ad needs a label. New York's law turns on synthetic performers, the EU's on deep fakes, and Pennsylvania's new law on whether AI content creates a false impression of the product. Google and Meta have their own label systems, and neither one settles your legal position. So the useful question is not "did we use AI?" but "which trigger does this asset hit, in which market?"

Why AI ad disclosure is back on the list this week

Pennsylvania governor Josh Shapiro signed Senate Bill 806 on 22 October, and it takes effect on 21 December, in the middle of the holiday peak. Loeb & Loeb's review of the law says it applies when synthetic content creates a false consumer perception about the nature, origin or authenticity of what is being advertised.

Two details matter. First, according to Loeb, the Senate removed wording that limited the law to advertisers acting knowingly, recklessly or wilfully, so there is no knowledge requirement. Second, a label may not be a full defence: an ad that creates a false perception could stay exposed under other laws even with one. Loeb also flags the open question: nobody has said what "false" is measured against, or whether simply depicting a product with AI is enough.

Do all AI-generated ads need a label?

No. The laws here are narrower than most coverage suggests, and each has a different trigger.

One point is unsettled. Loeb reads Pennsylvania's law as exempting text-only content, while AI Affairs notes that The Verge reported text as covered. We could not retrieve the enacted text to check, so read Act 99 itself before relying on either. Loeb also does not say whether the $3,000 is per violation.

The IAB line is useful as a working default. According to MarTech, it calls for disclosure on realistic synthetic images and video generated from prompts, some synthetic voices and avatars, and chatbots people could mistake for humans. It generally does not call for it on routine post-production, background music, ad copy or obviously stylised avatars. IAB's guidance does not override the law, and where a stricter law applies, the law wins.

What Google and Meta do, and what that does not cover

Google. Its 9 July policy update lets advertisers put AI labels inside image and video ads, or use an AI label setting rolling out across Google Ads, Display & Video 360, Campaign Manager 360, Merchant Center and Ads Editor. Such labels do not break its overlay rules. Google may also label assets made by its own AI tools. The update names rules in the EU, India and New York, and says the setting does not guarantee compliance with any regulation. Pennsylvania is not mentioned, because the update predates it. Do not assume the setting covers that state's disclosure format.

Meta. An update dated 1 June to its transparency post says it will automatically detect ads made with third-party AI tools through industry-standard signals, and put an "AI info" label in About this ad, behind the three-dot menu. Its help page, which carries no date, still says third-party ads will not have the label, so check what your own account does. According to Jon Loomer, Ads Manager also gained a self-disclosure checkbox in June, and in regions with AI transparency rules, checking it puts the label beside "Sponsored". He notes that Meta's documentation is unclear about when it applies. Ads Meta's AI edits are a related problem, which we cover in our guide to auditing Meta Advantage+ creative.

A label buried in a menu may or may not meet a law that asks for a clear and conspicuous notice. Loeb's summary of Pennsylvania's law asks for one that appears when the content first appears, in the same medium, and is permanent where feasible. Treat a platform label as a feature, not as your compliance position.

What does an AI label do to performance?

NYU Stern reports that telling people an ad was made with generative AI cut click-through by 31.5%, in the same research that found fully AI-generated ads beating human expert ads by up to 19%. That is one research project, not a rule for your account, and it does not tell you whether a small label behind a menu has the same effect.

It does explain the temptation to skip the label. Do not. Where a law applies, the cost of a label is not a choice. Where none applies, the honest way to reduce that cost is to change the asset: an ad without a synthetic performer or a realistic generated scene may trigger nothing at all.

Label placement is a spec problem

If you add your own label, it becomes a design element that has to survive the platform. According to PPC Land, Google says to keep labels outside a 5.5% margin around the image edge, and warns that automatic enhancements such as cropping can remove them, so you may need to turn those off. On 9:16 video, a label also has to clear the interface, which is what the Instagram Reels safe zone margins describe. A disclosure hidden under the caption is not conspicuous.

These are facts, and we have measured where facts belong. When Meta's safe zones were stated in its instructions, our untrained base model respected them in 9 of 10 cases; our fine-tune, trained on examples rather than told the rule, managed 5 of 10. The result is in our build log, and the argument is in when to fine-tune an LLM. If an assistant is drafting your briefs, write the disclosure wording and position into its instructions.

Where gloofy fits, and where it does not

gloofy cannot tell you whether an ad needs a label. It does not detect AI-generated images, does not read law, and does not check that a label is visible. The released models work on ad copy, as listed under the gloofy models, and our image composition adapter is not released.

What it can do is the neighbouring job: consistent tags for hook, angle, persona, offer and funnel stage across every variant, run on your own machine. Combine those with a provenance column your team fills in, and you can compare labelled against unlabelled ads for yourself. Provenance has to come from the people who made the asset, because no tag we produce can establish it. Other rules of this kind collect in our platform specs and compliance hub. None of this is legal advice.

What to do this week

1. Add a provenance field to every asset: tool used, what it changed, whether a synthetic person or voice appears, and who approved it.
2. Map each live campaign to its markets, and check New York, the EU and Pennsylvania first.
3. Review anything running after 21 December that depicts a product with AI, especially product results, origin or authenticity claims.
4. Test your labels in each placement and crop. Check that automatic enhancements do not remove them.
5. Ask counsel about Pennsylvania's text-only question and whether a platform label meets its format.

FAQ

Do AI-generated ads need to be labelled?

Not automatically. It depends on the trigger: synthetic performers in New York, deep fakes in the EU, and content creating a false perception of the product in Pennsylvania from 21 December 2026. Routine retouching and generated copy usually fall outside IAB's guidance, but check the law for each market you run in.

Does Google's AI label setting make my ads compliant?

No. Google says the AI label setting does not guarantee compliance with specific regulations, and advises advertisers to seek legal guidance. It helps you apply a label across Google Ads and related products, but whether that label meets a given law's format, timing and placement rules remains your responsibility.

When does Pennsylvania's AI ad law take effect?

Pennsylvania's SB 806 was signed on 22 October 2026 and takes effect on 21 December 2026. According to Loeb & Loeb, it has no knowledge requirement, and only the attorney general and district attorneys can enforce it. Evidently fictional content, parody, satire, commentary and criticism are exempt from the disclosure duty.

Do AI ad labels reduce clicks?

One study suggests they can. NYU Stern reports that telling people an ad was made with generative AI cut click-through by 31.5%. That finding comes from one research project and may not transfer to your account or to labels placed behind a menu, so measure your own ads where you can.