Pennsylvania Among First States to Mandate AI Labels on Ads

Pennsylvania is one of the first states in the United States to require clear labeling on advertisements that are significantly modified or generated by artificial intelligence. On Thursday, Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act into law, establishing a new precedent for digital transparency in the advertising industry.

The legislation mandates that any advertisement—whether it appears as a still image, video, audio clip, or text—that has been substantially altered or created using AI must include a disclosure label. This label is required to be presented in the same format as the ad itself, ensuring that consumers can easily identify synthetic content while engaging with marketing materials.

This requirement applies broadly across all types of media and business sizes. The law covers everything from high-budget television commercials produced by multi-billion-dollar corporations to local restaurant flyers promoting weekly specials. By setting this standard, Pennsylvania aims to ensure that consumers are not misled by synthetic imagery or audio when making purchasing decisions.

One of the most significant aspects of the new law is its extraterritorial reach. The disclosure requirements apply regardless of where an advertisement was originally created. Consequently, companies based in other states may need to adjust their campaigns if those ads are also expected to air or appear within Pennsylvania, potentially influencing advertising practices nationwide.

Despite its pioneering status, the law contains several notable loopholes and ambiguities. The statute requires disclosure only for content that "uses synthetic content in a manner that creates a false consumer perception" about a product or service. This phrasing leaves open questions about what constitutes a "false" perception and who is responsible for making that determination under the law.

Furthermore, the term "significantly modified" is subjective, leaving room for interpretation by advertisers and regulators. The law also includes carve-outs for content that falls under "parody, satire, commentary or criticism," as well as material that is "evidently fictional." However, the boundaries of these exceptions remain unclear, particularly regarding what qualifies as evidently fictional in a commercial context.

State Senator Nick Pisciottano, who introduced the bill, did not immediately return requests for comment following the signing. As one of the first states to implement such rigorous disclosure rules, Pennsylvania’s approach will likely be closely watched by other jurisdictions considering similar measures to combat deceptive AI-generated content.

The act represents a growing legislative effort to address the rapid advancement of generative AI technologies. As synthetic media becomes more sophisticated and indistinguishable from reality, policymakers are increasingly focused on balancing innovation with consumer protection. Pennsylvania’s move sets a benchmark for how states might regulate the intersection of technology and commerce.

“Governor Josh Shapiro signs the Artificial Intelligence Deceptive Advertising Act, requiring clear disclosures for ads significantly modified or generated by AI.”