New York Passed a Novel AI Transparency Act. Others Are Taking Notice.
It is becoming increasingly challenging to have a conversation about any topic without somehow talking about AI. As AI-generated designs, logos, commercials, voices, songs, articles, social media posts and advertisement become more and more ubiquitous, and as AI technology continues to improve, it is becoming harder and harder to distinguish between what is real and what is not.
On June 9, 2026, the State of New York passed a first-of-its-kind bill to attempt to change that. The “synthetic performers” act (NY State Senate Bill 2025-S8420A) (“Act”) requires any person engaged in the business of dealing in any property or service who creates an advertisement to “conspicuously disclose” whether the advertisement contains a “synthetic performer.” A synthetic performer is defined as:
A digitally created asset created, reproduced, or modified by computer, using generative artificial intelligence or a software algorithm, that is intended to create the impression that the asset is engaging in an audiovisual and/or visual performance of a human performer who is not recognizable as any identifiable natural performer.
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The Act imposes monetary fines on those who violate the disclosure requirements, with fines ranging from $1,000 for an initial violation and $5,000 for any subsequent violation. The Act officially went into effect on June 9 of this year. Various New York elected officials, including Governor Kathy Hochul, praised the Act as a proactive step to protect New York’s performers and the general public from deceptive advertisements that feature AI-generated people.
So far, at least one major retailer has taken notice: on July 22, 2026, Amazon announced that it is requiring all third-party sellers to provide a disclosure on any product images or videos that contain “AI-generated people” in light of the Act (though the disclosure is not required for content featuring TV, video game and movie characters, nor is it required for some other types of content). Similarly, though it did not directly attribute the Act for the change, Spotify announced on August 11, 2026, that it would be adding an “AI Persona” badge on artist profiles where the artist’s identity “may be” AI-generated. See Introducing a New Label for AI-Generated Artist Identities on Spotify — Spotify. Spotify noted, when introducing the change, that listeners “have been clear in telling [Spotify] that they don’t like seeing an artist profile that seems human, only to find out that the persona is AI-generated.” Id. Anthropic also announced in August 2026 that all of its AI models released after August 2, 2026—including Claude—will begin applying an invisible watermark to all AI-generated text and files. The company announced this change on its support page, citing the European Union’s AI Act's Article 50(2) Code of Practice on Transparency of AI-Generated Content as the driver. See How Claude marks AI-generated content | Claude Help Center. Anthropic has further stated that it is working to develop technology that will allow both its users and other third-parties receiving AI-generated content to detect the watermarks, though it has cautioned that heavy editing may render the mark undetectable.
It remains to be seen whether other states will follow New York’s lead and require disclosures in advertisements that feature AI-generated subjects and content. As a major player in both commerce and the arts, the Act has potentially wide-reaching implications for companies and artists both in and outside of New York. One thing is clear: as AI continues to evolve, the legal and regulatory landscape surrounding its use continues to rapidly evolve with it.