Martech at SMBtech

Could Australian Businesses Be Next? The Potential Impact Of New York’s AI Ad Disclosure Laws 

Artificial intelligence is changing the way businesses create content, from generating campaign imagery to developing virtual influencers and digital brand ambassadors. As AI-generated talent becomes more common across advertising and social media, a new question is emerging for businesses – how can they best communicate when the “person” featured in an advertisement is created using technology?

The conversation around responsible AI adoption is gaining momentum in Australia, with Prime Minister Anthony Albanese recently highlighting the importance of embracing the opportunities presented by artificial intelligence, while ensuring it is developed and used in a way that benefits Australians. As businesses continue to explore how AI can support creativity, productivity and innovation, questions around transparency and audience expectations are becoming increasingly important.

New York’s introduction of legislation requiring advertisers to disclose when AI-generated “synthetic performers” are used in advertising has placed a spotlight on the future of AI-driven campaigns. While the rules currently only apply overseas, they represent a broader global shift towards greater transparency around how artificial intelligence is used to create content.

AI-generated influencers, virtual brand ambassadors and synthetic spokespersons are already being explored across digital campaigns, creating new opportunities for businesses to experiment with creative formats and engage audiences in new ways. As these technologies continue to evolve, expectations around transparency and disclosure are likely to become an increasingly important consideration.

Shelley Friesen, Founder of Melbourne Social Co and ATTN.CTRL, says “Australian businesses should view New York’s legislation as an early indicator of where advertising standards are heading globally. AI-generated talent is becoming increasingly realistic, and businesses have an opportunity to think strategically about how they introduce this technology to audiences. Transparency will be critical in building trust as consumers become more aware of how content is created.”

New York’s AI disclosure laws could shape the future of advertising

The introduction of synthetic performer laws in New York reflects a broader conversation about the role of artificial intelligence in advertising. As technology becomes more advanced, governments, industry bodies and consumers are seeking greater clarity around when content has been generated or altered using AI.

While Australia has not introduced equivalent requirements, global developments are likely to influence expectations locally. Businesses operating across multiple markets, such as ATTN CTRL, may increasingly look to establish consistent approaches for communicating how AI-generated content is created and used.

AI-generated talent is changing how businesses create content

Virtual influencers and AI-generated brand ambassadors are creating new opportunities for businesses to develop digital content in new ways. Unlike traditional talent, AI-generated characters can be adapted quickly, appear across multiple platforms and be developed to suit different creative concepts and audiences.

As adoption grows, businesses will need to consider how AI-generated talent aligns with their brand identity, creative objectives and audience expectations. Clear communication around the use of AI can help businesses make the most of the technology, while creating stronger connections with consumers.

Trust and transparency will become increasingly important

Authenticity remains an important factor in how consumers connect with businesses, particularly online. As AI-generated people become increasingly realistic, clear communication will help audiences better understand the content they are engaging with.

“Businesses that are upfront about their use of AI will be better positioned as expectations continue to evolve. AI provides exciting creative opportunities, and businesses that pair innovation with transparency can create stronger connections with audiences,” added Friesen.

Why businesses should consider disclosure standards now

Although regulation around AI-generated advertising hasn’t been announced in Australia, businesses can begin preparing by establishing clear internal guidelines around how and when AI-generated talent is used. AI-generated talent is likely to become a bigger part of the advertising landscape, offering businesses new ways to create, experiment and connect with audiences. Those that prioritise transparency and clear communication will be best placed to embrace the opportunities AI presents, while maintaining meaningful relationships with consumers.

Last Updated on July 27, 2026 by Nick Ross

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