Pennsylvania will require labels on AI-generated ads

Pennsylvania Gov. Josh Shapiro has signed the Artificial Intelligence Deceptive Advertising Act, according to The Verge, making the state one of the first to require labels on AI-generated advertising. The rule matters for marketers because it applies across formats, from TV spots to local flyers, and may affect campaigns made outside Pennsylvania if they are intended to run there.

What the new ad labeling rule covers

The law requires a disclosure when an advertisement “has been significantly modified or generated by artificial intelligence,” according to the text cited by The Verge. That includes still images, video, audio and text.

The label must appear in the same format as the ad itself. In practical terms, that means teams cannot treat disclosure as a back-office note or a hidden production detail. If an ad is audio, the disclosure requirement is tied to the audio format; if it is visual or text-based, the notice must match that context.

The Verge notes that the law applies broadly, not just to large national advertisers. A major TV commercial and a small restaurant flyer could both fall under the requirement if they use AI-generated or significantly AI-modified material.

For small businesses and agencies, the important shift is process. If AI is used in a campaign, teams will need a reliable way to identify where it was used, decide whether the use is substantial enough to matter, and place a disclosure in the ad format rather than only in internal records.

Why marketers outside Pennsylvania should pay attention

The law is not limited to ads created inside Pennsylvania. According to The Verge, the disclosure requirement applies regardless of where the ad was made. That means a campaign produced elsewhere may still need a label if it is expected to appear in Pennsylvania.

This is where the operational burden can spread beyond state borders. Brands often reuse the same creative across markets, platforms and local media buys. If Pennsylvania is part of the distribution plan, marketers may decide it is simpler to label the AI-generated version everywhere rather than maintain separate versions.

That does not mean every AI-assisted workflow is automatically covered. The source text focuses on ads that are significantly modified or generated by AI. But it does mean marketers should know which assets were created with synthetic content and where those assets are scheduled to run.

A practical checklist for ad teams now looks like this:

• Track AI use at the asset level, not just the campaign level.
• Ask vendors and freelancers whether synthetic content was used.
• Review image, video, audio and copy workflows before launch.
• Plan disclosures early enough that they fit the final creative format.
• Keep Pennsylvania distribution in mind when adapting national campaigns.

The loopholes and gray areas

The Verge’s report highlights several unresolved questions. The biggest is the phrase “significantly modified.” The law does not remove the need for judgment, and different teams may interpret significance differently.

There are also carve-outs for parody, satire, commentary or criticism. The law also excludes content that is “evidently fictional,” though The Verge notes that the meaning of that phrase is unclear.

Another gray area is the law’s wording around synthetic content that creates a false consumer perception about a product or service. That raises follow-up questions: what counts as false, how much consumer perception matters, and who decides when an ad crosses the line?

The office of State Senator Nick Pisciottano, who introduced the bill, did not immediately respond to The Verge’s request for comment.

For marketers, the uncertainty is the main issue. The law creates a disclosure requirement, but the boundaries around significant modification, obvious fiction and false perception may need clarification through guidance or enforcement.

How this fits into the wider AI disclosure shift

Pennsylvania’s move is part of a broader push to make AI-generated media more visible to audiences. Platforms and companies have been experimenting with labeling systems in other contexts, including music; for example, YouTube has added “Made with AI” labels to AI-generated songs. Advertising is a higher-stakes category because it is designed to shape consumer decisions.

For creators and small businesses, the takeaway is not to stop using AI in marketing. It is to treat disclosure as part of production, just like rights clearance, claims review or brand approval. If an ad uses AI-generated imagery, synthetic audio, AI-written copy or AI-edited video in a significant way, the safest workflow is one that can document that use and make room for a label.

The law also arrives as AI and advertising policy are becoming more closely linked. Recent debates over personalization and ad targeting, including Google-related policy changes, show how quickly AI practices can become compliance issues for marketers; see our coverage of how a Google policy change ties AI personalization to ad targeting.

Pennsylvania’s act leaves open questions, but it gives marketers a clear signal: AI use in ads is moving from an internal creative choice to something consumers may be required to see.