Pennsylvania's AI Ad Label Law: What Marketers Must Do Now

What happened

Pennsylvania Governor Josh Shapiro has signed the Artificial Intelligence Deceptive Advertising Act. According to The Verge AI, any ad that has been "significantly modified or generated by artificial intelligence" must carry a disclosure. That covers still images, video, audio and text. The label has to be in the same format as the ad itself, so a video ad needs a visible or audible disclosure, and a text ad needs written wording.

The law does not care whether the ad is from a global brand or a local restaurant promoting wing specials. It also applies regardless of where the ad was created. A campaign made in another state and also shown in Pennsylvania could therefore need a label.

The loopholes are big

The law is broad in scope but vague in its details. The Verge points out several gray areas:

• "Significantly modified" is subjective. Is AI-assisted retouching significant? What about an AI-rewritten headline?
• Exemptions exist for parody, satire, commentary or criticism, and for content that is "evidently fictional." The second phrase is not clearly defined.
• The "false consumer perception" test. The wording suggests a disclosure is needed when synthetic content creates a false perception of a product or service. That raises the question of what counts as false, and who decides.

The bill's sponsor, State Senator Nick Pisciottano, did not immediately respond to The Verge's request for comment. I would not assume the gray areas will be settled soon.

Why this matters for marketers

Pennsylvania is one of the first states to require disclosure on AI content. Whether or not you sell there, the practical effect could spread. National campaigns are rarely split by state, and it is often simpler to apply one standard everywhere.

For ecommerce sellers, the risk sits in product pages and ads. AI-generated lifestyle photos, synthetic models, AI-enhanced packaging shots and AI-written claims are all common now. If an image makes a product look different from reality, you are in the zone this law targets.

There is also a trust angle. Shoppers are getting more sceptical of images and video, and a clear, honest label may cost you less than being caught using AI without one.

I have not seen penalties, enforcement details or an effective date in the reporting, so check those with a qualified lawyer before changing anything major.

What to do now

1. Audit your AI use. List every place AI touches your ads: image generation, background replacement, voice cloning, video editing, copywriting. You cannot label what you have not tracked.

2. Set your own definition of "significant." Until the law is clearer, I would draw a conservative line. Fully generated people, products, voices or scenes get a label. Light cleanup like cropping or colour correction probably does not. Write the rule down and apply it consistently.

3. Prepare label wording for each format. Because the label must match the ad format, you need a short on-screen line for video, a spoken line for audio and a text line for copy and static images. Build these into your templates now.

4. Tighten your briefs with agencies and freelancers. Ask them to disclose AI use in deliverables and keep records of what was generated. If an ad you run is wrong, the responsibility lands on you.

5. Prioritise accuracy over disclosure. The "false consumer perception" test means the safest path is making sure AI visuals do not misrepresent the size, colour, quality, results or availability of what you sell. A label is not a fix for misleading content.

6. Watch for platform changes. I have not seen any platform response in this report, but ad networks often adapt to rules like this. Keep an eye on policy updates.

The bottom line

This is not a ban on AI in advertising. It is a push toward honesty about it, with enough ambiguity to make businesses cautious. Small businesses may feel the compliance burden most, because the law reaches even a simple flyer. Build the habit of tracking and labelling AI use now, and you will be ready whichever way the rules settle.