ASCI issues AI labelling guidelines for ads, rules to take effect in three months

Synopsis

ASCI’s new AI advertising guidelines require disclosure of synthetically generated content (SGC) when hiding its AI origin could materially affect how consumers understand or act on an advertisement. The rules take effect three months after publication.

The Advertising Standards Council of India (ASCI) has issued guidelines requiring advertisers to label synthetically generated content in advertisements when its disclosure could materially influence consumer understanding or purchasing decisions. The guidelines will come into effect three months from the date of publication.

The guidelines, released on September 29 following stakeholder consultations on a draft issued in May, set out when AI-generated content must be disclosed and which uses are prohibited, irrespective of whether a label is provided.

As brands increasingly use artificial intelligence (AI) to create and enhance advertising, ASCI’s framework focuses on the potential impact on consumers rather than the technology used. All advertisements containing synthetically generated content (SGC) must continue to comply with the ASCI Code.

Labelling will be mandatory for synthetically generated influencers and brand ambassadors, the replication of a real person’s likeness or voice with consent for personalised messaging, and fabricated events or settings that could affect consumers’ understanding of a product or service.

The requirement also covers demonstrations of products that do not exist, AI-generated sound effects closely linked to a product’s core features, such as headphones, and paid or sponsored AI-generated product recommendations. The latter must specifically carry the label “Sponsored by [Brand]”.

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However, disclosure will not be required for routine editing, including colour correction, light adjustment, noise reduction and minor blemish removal; decorative or ambient elements; obvious fantastical effects; administrative and text-based uses such as generating advertising copy; and accessibility applications such as subtitles, translations and accurate audio descriptions.

The guidelines also specify uses that remain prohibited. These include fabricated endorsements or testimonials, misleading exaggeration of product results or features, representing non-existent locations as real to mislead consumers, unauthorised use of copyrighted work, and deepfakes or the use of an individual’s likeness without consent.

ASCI said that adding an AI label would not make an otherwise misleading advertisement acceptable. Where disclosure is required, advertisers may use labels such as “Audio/Video created using AI” or “Audio/Video enhanced using AI”, including labels provided by advertising platforms. Alternative labels are also permitted, provided they accurately inform consumers about the nature of the synthetic content.

“The responsibility remains with advertisers to ensure that the end communication is honest, transparent and compliant with the ASCI Code,” said Manisha Kapoor, secretary general and CEO of ASCI.

“The use of AI in advertising is evolving rapidly, and our approach must evolve with it while keeping the consumer at the centre,” she said, adding that the guidelines establish practical transparency requirements where a consumer’s understanding of an advertisement could be adversely affected without an AI label.

ASCI said all advertisements using synthetically generated content would continue to be assessed against the ASCI Code in its entirety.

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