The Advertising Standards Council of India (ASCI) has introduced guidelines for the responsible use and labeling of synthetic content in advertising. The new rules require disclosure of AI usage in cases where AI-generated material may influence consumer decisions or where the absence of such labeling could mislead the audience. Advertisers can use phrases like 'Audio/video created with AI' or 'Audio/video enhanced with AI' to denote such content. Other formulations are also allowed if they clearly explain the nature of the technology used to the user. ASCI notes that synthetic content can create unrealistic expectations, depict unsafe situations, use a person's image or voice without permission, or contain inaccurate information.
Mandatory labeling is required for several categories of advertising materials. Specifically, it is needed when using AI-created virtual influencers and ambassadors, as well as the image or voice of a real person for personalized advertising messages. The label should also be present if the advertisement shows an artificially created event or place that could influence audience behavior, depicts a non-existent product, or uses synthetic sound effects related to key product features. The requirement also applies to paid or sponsored product recommendations created using AI.
ASCI's Secretary General and CEO, Manisha Kapoor, noted that the use of AI in advertising is rapidly evolving, and the regulator's approach must evolve with it, keeping the consumer at the center. According to her, the new guidelines set practical transparency requirements in cases where understanding of the advertisement by the consumer could suffer without AI labeling. Kapoor emphasized that labeling alone does not make misleading advertising permissible: the responsibility for honesty, transparency, and compliance with ASCI's code remains with the advertiser. Materials that violate advertising standards or use someone's likeness without consent must still meet general requirements.
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