Artificial intelligence and other digital technologies are changing how advertisements are created, enabling brands to generate realistic images, replicate voices, develop virtual ambassadors and personalise promotional messages. These tools offer considerable creative possibilities, but their use may also make it difficult for consumers to distinguish actual experiences and product demonstrations from artificially created representations. Clear disclosure becomes important when this distinction affects how consumers understand an advertisement or assess the product or service being promoted.
The Advertising Standards Council of India (ASCI) has addressed these issues through its Guidelines for Responsible Labelling of Synthetically Generated Content in Advertising, dated September 17, 2026. The Guidelines establish a framework for determining when synthetic content requires disclosure, when labelling is unnecessary and when the content remains prohibited despite a label. They provide for implementation upon the expiry of 3 months from the date of publication.
Scope of the Guidelines
The Guidelines define “synthetically generated content” (SGC) as audio, visual or audio-visual content artificially or algorithmically created, generated, modified or materially altered through a computer resource to appear real, authentic or true. The definition covers representations of individuals or events that are likely to be perceived as genuine or indistinguishable from a natural person or a real-world event.
The framework focuses on the effect of the advertisement on consumers rather than the technology used to produce it. Its purpose is to ensure transparency where necessary without requiring labels for every use of digital tools, which could reduce the usefulness of disclosures through excessive labelling.
All advertisements containing SGC must comply with the entire ASCI Code. The Guidelines identify risks such as creating expectations that cannot be fulfilled, exploiting vulnerable consumers, depicting unsafe situations, replicating a person’s likeness without consent and conveying false or misleading information through visual or other representations.
Need for Labelling
The requirement to label synthetic content depends on the nature of the communication and the risk of misleading or harming consumers. Under the Guidelines, brands are expected to assess whether SGC is central to the advertisement’s persuasive message or materially influences purchase decisions. They must also consider whether the absence of a label would mislead consumers about the claims, performance or benefits of the advertised product or service.
This assessment requires attention to the role played by the synthetic element within the advertisement. A digitally created background used for decoration may have little bearing on a purchasing decision, but a synthetic demonstration of a product’s performance may directly influence a consumer’s expectations. The need for disclosure therefore depends on what the representation communicates and how it is likely to be understood.
Content Prohibited Despite Disclosure
The Guidelines lay out that an AI label does not make an advertisement acceptable if it is illegal, infringes rights, makes misleading claims, or otherwise violates the ASCI Code. Disclosure may help recognise the nature of the content, but it does not make an objectionable representation acceptable.
Examples of prohibited content include fabricated endorsements or testimonials that falsely suggest a real person has used, experienced, approved or recommended a product or service. The restriction also covers synthetic claims or visuals that exaggerate product results or features beyond what can be substantiated. An artificially generated transformation cannot be presented in a manner that misleadingly suggests the depicted results are achievable through the use of the advertised product.
The Guidelines also prohibit representing non-existent locations or facilities as real, such as an advertisement depicting a hotel where it does not exist. Unauthorised use of copyrighted works, deepfakes or a person’s likeness without consent is also identified as prohibited content. These provisions make rights clearance and the accuracy of the underlying representation essential considerations, independent of labelling.
Requirement Relating to Labels
Labelling is mandatory where SGC materially influences consumer decisions and the absence of disclosure would mislead consumers. Examples include synthetically generated influencers and ambassadors, as well as replicating a real person’s face or voice for personalised messaging, even where that person has consented. Consent addresses permission to use a person’s likeness or voice, but consumers may still need to be informed that the message has been digitally generated or replicated. Obtaining permission does not by itself resolve the transparency requirement.
Labels are also required for fabricated events, settings or situations that may affect a consumer’s understanding of the advertised product or service, and for demonstrations of products that do not yet exist, such as a three-dimensional model of an unbuilt housing complex. Synthetic sound effects may require disclosure where they are closely connected with a product’s core features, including audio used to demonstrate the sound quality of a headset.
The Guidelines separately address paid or sponsored product suggestions made through AI. Where a chatbot recommends a product because a brand has paid for or sponsored the recommendation, the commercial relationship must be clearly identified through a disclosure such as “Sponsored by [Brand]”. This enables consumers to recognise the commercial influence behind the suggestion.
Uses That Do Not Require Labels
Labelling is not required for minor modifications or uses of SGC that do not materially affect a consumer’s ability to make an informed choice. Routine editing, colour correction, lighting adjustments, noise reduction, standard blemish removal, formatting and copy refinement fall within this category, provided they do not alter the substance or core claims of the advertisement.
Purely decorative backgrounds, abstract skylines, ambient music, jingles and background sound effects also do not require labels where they are unrelated to the product’s capabilities or promise. Fantastical effects that audiences would recognise as unreal, such as a vehicle transforming into a flying spaceship, are similarly excluded from the labelling requirement.
The exclusions extend to specified administrative and text uses undertaken in good faith without creating false records, and accessibility uses such as subtitles, closed captions, translations and accurate audio descriptions. These exceptions remain subject to the broader requirement that the advertisement comply with the ASCI Code.
Form of Disclosure
Brands may use suitable labels provided by advertising platforms or introduce their own wording that accurately explains the nature of the content. Suggested labels include “Audio/Video created using AI” and “Audio/Video enhanced using AI”, but alternative wording is permitted if it properly informs consumers. Sponsored AI recommendations must clearly disclose the sponsorship. Disclaimers must follow ASCI’s disclaimer guidelines where applicable. The Guidelines reiterate that even labelled content may remain misleading or objectionable if its overall effect is likely to mislead or harm consumers.
Conclusion
The Guidelines place consumer understanding at the centre of assessing synthetic advertising content. Review for advertisers must address whether the representation is truthful, whether the necessary permissions have been obtained and whether disclosure is required to explain its nature. Incorporating these questions into the creation and approval of advertisements would enable brands to identify prohibited uses early and provide relevant labels when synthetic content affects consumer decisions.
Authors: Manisha Singh and Shivi Gupta