ASCI issues final guidelines on labelling AI-generated ads, to take effect in three months

The Advertising Standards Council of India (ASCI) today issued guidelines for properly labelling synthetically generated content (SGC) in advertisements. The guidelines lay down when advertisers must disclose the use of artificially created content and which content may not be used at all. A draft was released in May, and the final guidelines were announced after consultations with stakeholders.

Brands are using artificial intelligence (AI) on a large scale to create and refine advertisements. The guidelines focus on the effect of content on consumers. SGC can be misleading or harmful if it raises undue expectations, exploits vulnerable groups, shows unsafe situations, uses a person's likeness without approval, or gives false and misleading information. All advertisements that use SGC must comply with the ASCI Code.

The guidelines will come into force three months after the date of issue. They clarify four main areas, so that advertisers understand when disclosure is required and which uses of SGC are not acceptable.

The first area is prohibited content. Advertisements that are illegal, infringe rights, make misleading claims or breach the ASCI Code will remain barred even if they carry an AI label. This includes creating fake endorsements or testimonials. It also covers using synthetic presentation to misrepresent a product's results or features. Also counted are presenting places or backgrounds that do not exist as real in order to mislead consumers, using copyrighted material without permission, and using deepfakes or a person's photograph without approval.

The second area is content that must be labelled. A label is mandatory where SGC influences consumers' decisions and consumers could be misled without disclosure. This covers synthetically created influencers and brand ambassadors. It also covers imitating a real person's face or voice, with approval, for personalised messages. Also included are showing fake events or backgrounds that could influence consumers about the advertised product or service, and demonstrating products that do not yet exist. Sound effects made with SGC that are closely tied to the core features of a product such as headphones also need a label. Paid or sponsored AI-generated product recommendations must be clearly labelled "Sponsored by (brand)".

The third area is content that needs no label. Where SGC does not affect a consumer's ability to make an informed decision, disclosure is not required. This covers routine editing such as colour correction, light adjustment, noise reduction and removal of minor blemishes. Decorative or incidental background elements, clearly fictional effects, and administrative and text-based tasks such as drafting an advertisement are also included. Applications that improve accessibility, such as subtitles, translation and accurate audio description, are exempt too.

The fourth area is disclosure labels and enforcement. Where disclosure is needed, brands can use the labels provided by advertising platforms, such as "audio/video created using AI" or "audio/video altered using AI". Brands may also use other labels, provided they let consumers properly understand the nature of the synthetic content. Where applicable, these disclosures must follow the ASCI Code's guidelines on disclaimers.

Manisha Kapoor, Secretary General and CEO of ASCI, said: "The use of AI in advertising is growing rapidly, and with consumers at the centre, our approach must change accordingly. Advertisements without AI labels in particular can have an adverse effect on consumers, so these guidelines ensure practical transparency. Importantly, the guidelines make clear that merely adding an AI label does not make a misleading advertisement acceptable. The responsibility for ensuring that communication is honest, transparent and in line with the ASCI Code will rest with advertisers."