Pennsylvania Requires Labels on AI‑Generated Advertisements

On Thursday, Governor Josh Shapiro signed the Artificial Intelligence Deceptive Advertising Act into law. The statute obliges any advertisement that has been significantly modified or created with artificial intelligence to carry a label in the same format as the ad itself. The rule applies to static images, video, audio and text, whether the ad runs on television, online or in print.

What the law requires

The act defines a required disclosure as a label that appears in the same visual style as the surrounding ad. According to The Verge, the label must be present on any ad that is "significantly modified or generated by artificial intelligence." The law does not distinguish between large corporate spots and small‑business flyers; a restaurant’s hand‑drawn flyer for a wing special would need the same treatment if AI was used to create the graphics or copy.

Who is affected

Because the legislation applies to any ad that will be shown in Pennsylvania, businesses that run national campaigns must consider the label for spots that air in the state. The law also reaches local advertisers that distribute printed or digital materials within Pennsylvania’s borders. Even if an agency creates the ad outside the state, the label must be added if the campaign is expected to appear in Pennsylvania. This makes compliance a cross‑jurisdictional issue for brands that advertise nationwide.

Areas of uncertainty

The bill leaves several key terms open to interpretation. The phrase "significantly modified" is subjective, and the act provides carve‑outs for parody, satire, commentary, criticism and content that is "evidently fictional." The Verge notes that "what constitutes 'evidently fictional' is unclear," and the statute ties the disclosure requirement to content that "creates a false consumer perception" about a product or service. Those gaps mean that businesses may need to seek legal advice to determine when a label is mandatory.

Practical steps for small businesses

If you create or commission ads that use AI tools, follow these basic actions to stay on the safe side:

• Identify AI‑generated elements. Keep a record of any image, video, audio clip or copy that was produced or heavily edited with generative AI.
• Add a clear label. Place a short statement such as "Generated with AI" in the same font, color and size as the rest of the ad.
• Review existing assets. Audit current marketing materials for AI use and retroactively add labels where needed.
• Document decisions. Note why a particular piece does or does not require a label, especially if it falls under a parody or fictional exemption.
• Consult legal counsel. Because the law’s language is open‑ended, a brief review by a lawyer can reduce the risk of inadvertent non‑compliance.

These steps help you meet the letter of the law while keeping the process manageable for small teams.

What to watch next

Pennsylvania is among the first states to enact an AI disclosure requirement, and other states are watching its implementation. Industry groups may lobby for clearer definitions of "significantly modified" and "false consumer perception" in the coming months. Keep an eye on announcements from the Pennsylvania Attorney General’s office, which is expected to issue guidance on label design and enforcement procedures. For businesses that rely on AI for content creation, staying informed about emerging best practices will become part of routine marketing governance.

If you’re unsure how AI fits into your current workflow, consider a plain‑English roadmap that outlines practical uses and compliance steps. Get a plain-English AI roadmap.