AI Ad Labelling Guidelines Issued

AI Ad Labelling is set to become more important for advertisers as the Advertising Standards Council of India (ASCI) has introduced guidelines for responsible labelling of synthetically generated content in advertising. The framework focuses on advertisements created or significantly changed using artificial intelligence and other synthetic media tools. It aims to help consumers understand when AI has played an important role in an advertisement and when such use could affect their buying decisions. ASCI’s framework follows a risk-based approach rather than requiring labels for every use of AI.

What Are the New AI Ad Labelling Guidelines?

The guidelines cover advertising material that is artificially created, modified or materially changed to appear authentic. This can include AI-generated images, synthetic voices, virtual influencers, digitally recreated people and realistic AI-created scenes.

ASCI’s approach is based on the possible effect on consumers. The key question is whether the use of AI materially changes the way consumers understand a product, its performance or its benefits. Where AI plays an important role in the persuasive message and a lack of disclosure could create a misleading impression, disclosure is required.

The framework is also designed to avoid unnecessary labels for simple editing work. This means advertisers can continue to use many common AI-assisted tools without adding a disclosure when the changes do not materially affect consumer choice.

Three Risk Levels for AI Advertising

The framework divides synthetic content in advertising into different risk levels. This makes the rules easier to apply according to the possible impact on consumers.

High-risk content includes misleading or prohibited advertising. Examples include fabricated endorsements, exaggerated product results, realistic fake locations, unauthorised use of a person’s likeness and deepfakes. Such content does not become acceptable simply because an AI label is added.

Medium-risk content requires labelling. This category includes virtual influencers, synthetic replicas of real people, AI-generated product demonstrations, realistic AI-created events and settings, and demonstrations of products that do not yet exist.

AI-generated sponsored product recommendations also require disclosure, with the framework specifically mentioning the label “sponsored by” for such cases.

When AI Labelling Is Required

Advertisers may need to disclose AI use when synthetic content can materially influence how consumers make a purchase decision. For example, an advertisement showing an AI-created product performance scene may need a label if the visual could make consumers believe the product actually performs in that way.

The same principle applies when a real person’s face or voice is digitally recreated, even when the person has given permission for the use. The disclosure helps the audience understand that the content has been synthetically created or altered.

ASCI has suggested labels such as “Audio/Video created using AI” and “Audio/Video enhanced using AI”. Other labels can also be used if they clearly tell consumers about the nature of the synthetic content.

Routine AI Editing Does Not Always Need a Label

Not every AI-assisted advertisement will need an AI label. The framework identifies several low-risk uses where disclosure is not required because the changes do not materially affect informed consumer choice.

These include routine colour correction, noise reduction, minor lighting changes and standard blemish removal. Decorative AI-generated backgrounds, ambient music and obvious fantasy effects can also fall into the no-labelling category when they do not change the main product message.

Generating or improving advertising copy and creating accessibility features such as audio descriptions are also included among the examples of lower-risk uses.

Deepfakes and Fake Endorsements Remain a Concern

The growth of generative AI has made it easier to create realistic faces, voices and scenes. This has raised concerns for advertisers because consumers may find it difficult to distinguish genuine endorsements from synthetic ones.

Under the ASCI framework, advertisers cannot rely on a disclosure label to justify content that is misleading or violates advertising standards. Fabricated testimonials, fake authority figures and unauthorised use of a person’s identity remain problematic even if an advertisement tells viewers that AI was used.

AI Advertising Rules Are Evolving

The new framework comes as advertising platforms and technology companies are also introducing their own AI transparency measures. Google, for example, began allowing advertisers in 2026 to add text or visual AI labels to image and video advertising creatives that were generated or modified using AI. Google also noted that advertisers remain responsible for meeting applicable local requirements.

This wider shift shows how AI transparency is becoming an important part of digital advertising. Brands are increasingly using generative AI for images, videos, voices, virtual characters and marketing content, while consumers are seeking clearer information about what they are seeing.

ASCI’s existing advertising code already requires advertisements to be truthful and not misleading. The new AI-focused framework adds more specific guidance for synthetic content while keeping the broader advertising code applicable to AI-assisted advertisements.

What the Guidelines Mean for Advertisers

For brands and agencies, the focus will be on checking how much AI changes an advertisement and whether that change could affect consumer understanding. Advertisers will need to distinguish between simple production assistance and synthetic content that creates a realistic representation capable of influencing a purchase decision.

The approach also gives advertisers room to use AI for creative and production tasks without placing unnecessary labels on every minor modification. At the same time, realistic synthetic representations, virtual influencers and AI-generated demonstrations may require clearer disclosure so consumers can understand the content they are viewing.