On Thursday, Pennsylvania Governor Josh Shapiro enacted the artificial intelligence Deceptive Advertising Act. The legislation obliges any advertisement that has been substantially altered or produced by artificial intelligence to display a disclosure that mirrors the ad’s original format. Whether the piece is a static image, a video spot, an audio clip, or plain text, the label must appear alongside the content, making the AI involvement unmistakable to the viewer.
This requirement does not differentiate between high-budget national campaigns and modest local flyers. A multi-billion-dollar corporation’s television commercial and a neighborhood restaurant’s flyer for wing specials must both carry the same type of AI disclosure if the material was generated or heavily edited by AI tools.
Core provisions of the Pennsylvania AI advertising law
The statute lays out three essential rules. First, any ad that is significantly modified or fully produced by AI must include a label that matches the ad’s visual or auditory style. Second, the label must be placed in the same format as the advertisement itself, ensuring it cannot be overlooked. Third, the law applies to content destined for Pennsylvania audiences regardless of where the ad originates, meaning out-of-state campaigns will need to adapt if they plan to reach Pennsylvanian viewers.
Undefined terms and built-in exemptions
While the law’s intent is clear, several phrases remain open to interpretation. The phrase “significantly modified” lacks a quantitative benchmark, leaving marketers to decide at what point AI alterations become material. Additionally, the bill carves out exceptions for parody, satire, commentary or criticism, and for material deemed “evidently fictional”. The meaning of “evidently fictional” is not spelled out, raising questions about whether a sci-fi advert or a stylized promotional video might qualify for exemption.
Moreover, the statute specifies that a disclosure is required only when AI usage creates a false consumer perception about a product or service. Determining what constitutes a “false” perception could become a legal gray zone, as it will likely rest with regulators or courts to interpret intent and impact.
Practical impact on advertisers
Businesses of all sizes will need to audit their creative pipelines. Companies that rely on generative AI for copywriting, image synthesis, or video deep-fakes must establish internal checks to ensure a compliant label is attached before publication. For large brands, this may involve updating ad-serving platforms to automatically append AI disclosures. Smaller enterprises, such as local eateries, might find the requirement burdensome if they lack the technical resources to generate or verify labels.
Because the law applies to any ad that could be shown in Pennsylvania, even marketers elsewhere must consider adding the label if their campaign’s reach includes the Keystone State. This could spur the development of a standardized AI-label template that can be easily integrated across different media formats.
Political backdrop and unanswered questions
The bill was introduced by State Senator Nick Pisciottano. When approached for comment, his office did not respond immediately, leaving the public without insight into the legislative intent or anticipated enforcement mechanisms. Critics argue that the vague language around “significant modification” and “false perception” could invite legal challenges, while proponents contend that any transparency is preferable to the current opacity surrounding AI-driven marketing.
As one of the first U.S. states to enact mandatory AI advertising disclosures, Pennsylvania’s approach may set a precedent for other jurisdictions. Yet the success of the law will hinge on how regulators interpret the ambiguous terms and whether they provide clear guidance to advertisers navigating this novel terrain.
