Generative AI tools now let a small business produce a polished video or radio spot without hiring a single actor or voice artist. California has taken notice. On September 16, 2026, Governor Newsom signed Senate Bill 1050 (Chapter 246, Statutes of 2026), which adds Section 17610 to the Business and Professions Code. Starting January 1, 2027, an audio or video advertisement that prominently features an AI-generated “synthetic performer” must tell viewers or listeners so, clearly.
Key takeaways
- SB 1050 takes effect January 1, 2027 and applies to audio, video and audiovisual ads distributed to consumers in California.
- If an ad prominently features a realistic AI-generated performer who is not a real, identifiable person, the ad needs a clear and conspicuous disclosure.
- The statute points to wording substantially similar to “this performance features a synthetic performer” or “no human performer is depicted.”
- Audio-only ads are covered, so an AI-generated narrator or voiceover can trigger the rule.
- A violation is treated as false advertising under Business and Professions Code Section 17500 and can be enforced through the Unfair Competition Law.
What SB 1050 requires
The core rule is short. A person who creates an advertisement and causes it to be published in an advertising medium may not do so if the ad prominently includes a synthetic performer, unless the ad carries a clear and conspicuous disclosure that it includes one. According to the Governor’s announcement, the law is aimed at video and audio ads that use AI-generated performers to sell a product or service.
Who is a “synthetic performer”?
Under the new Section 17610, a synthetic performer is a digital figure, voice or representation created in whole or in part with generative AI that gives the realistic impression of a human performer, but is not recognizable as any identifiable natural person. In plain terms: a lifelike “person” or voice that the AI invented. A cartoon mascot that no one would mistake for a human is a different situation, and a deepfake of a real, recognizable person is governed by other California laws, such as the right of publicity.
When is a performer “prominent”?
The disclosure duty applies only when the synthetic performer is used prominently. The statute describes this as a performer who is in the foreground demonstrating or illustrating the product or service, who provides or voices the narration or commercial message, or who illustrates or reacts to that message. An AI-generated spokesperson, an AI “customer” giving a reaction on camera, or an AI voiceover reading your script would likely qualify. A blurry AI-generated crowd in the background likely would not, although the line will depend on the facts.
What the disclosure should look like
“Clear and conspicuous” means the disclosure should be difficult to miss and easy to understand, judged by the medium, format and context of the ad. A tiny line of gray text that flashes for half a second is unlikely to meet that standard. For an audio ad, a spoken disclosure is the natural fit. For video, an on-screen statement that stays up long enough to read, and is placed where viewers will see it, is a sensible approach. The statute suggests language substantially similar to “this performance features a synthetic performer” or “no human performer is depicted.”
What the law does not cover
SB 1050 is a disclosure law, not a ban. Section 17610 states that it does not restrict creating, distributing or showing synthetic content, and it does not regulate the expressive content of an ad beyond the required factual disclosure. It also carves out:
- Ads for expressive works such as films, TV shows, streaming programs, documentaries and video games, when the synthetic performer is used in the ad consistently with its use in the work itself.
- Translation and accessibility uses, where generative AI is used solely to translate a real human performer’s words into another language or to provide accessibility features.
The translation carve-out may matter to businesses that market to multilingual communities. If a real spokesperson records an ad and AI is used only to render it in Spanish, Romanian or Russian, that use appears to fall outside the disclosure requirement. If AI invents the speaker, it does not.
Platforms, publishers and court orders
Broadcasters, streaming services, online platforms, ad networks and publishers are “advertising media” under the law, but they are not required to screen ads in advance. Their duty arises after a court finds an ad unlawful or enjoins its publication and the medium is served with that order. At that point, the medium must, as soon as commercially reasonable and technically feasible, remove or stop distributing the ad in California and stop accepting payment for it. For advertisers, this means a noncompliant ad could be pulled mid-campaign.
How the law is enforced
SB 1050 does not set a new penalty schedule. Instead, a violation is treated as a violation of California’s False Advertising Law (Business and Professions Code Section 17500) and may be enforced under the Unfair Competition Law (Section 17200 and following). Those laws can be enforced by the Attorney General, district attorneys and certain city attorneys, and by private parties who meet the statutory standing requirements. Because the obligation sits on whoever creates the ad and causes it to be published, a business should not assume that its marketing agency alone is responsible.
What California businesses can do now
- Inventory your ads. List current and planned audio and video ads that will run in California in 2027 and note which use AI-generated people or voices.
- Add a review step. Before an ad is published, ask whether any prominent performer or voice was generated by AI and, if so, whether the disclosure is in place.
- Update your AI use policy. If your business has an internal AI use policy, add a section on marketing content and synthetic performers.
- Review agency and vendor contracts. Consider requiring agencies, freelancers and AI content vendors to tell you when synthetic performers are used, to include compliant disclosures, and to address responsibility if an ad is challenged. Our article on AI agreements covers related contract terms.
- Keep records. Save the prompts, tools and source files used to produce each ad so you can show how it was made if questions come up.
Businesses that advertise nationally should also note that New York has its own synthetic-performer disclosure law with different terms, so a single disclosure approach may need to be checked against both states.
Frequently asked questions
Does SB 1050 apply to still images or text ads?
The law is directed at audio, video and audiovisual advertisements, and its definition of advertising media refers to entities that distribute those kinds of ads. Whether a still image could ever be covered is less clear, so a business using AI-generated people in print or banner ads should have that question reviewed. California’s general false advertising rules apply to every ad regardless.
I used AI to clean up the audio of a real actor. Do I need a disclosure?
The definition focuses on a performer created with generative AI who is not an identifiable real person. Editing a real human performance is different from inventing a performer, but the answer depends on how much of the performance the AI generated. When in doubt, have the specific ad reviewed.
My business is outside California. Does the law apply?
The law addresses ads distributed to consumers in California. A business located elsewhere that runs audio or video ads reaching California audiences should consider it.
When does the law take effect?
January 1, 2027. The bill has no urgency clause, so it follows California’s standard effective date for laws passed in the 2026 session.
Talk with a California business and AI attorney
If your business uses AI tools to produce marketing, we can help you review ad workflows, update your AI use policy and tighten agency and vendor contracts before January 1, 2027. Businesses can also work with us on an ongoing basis through our outside general counsel service; see our legal fees page for options. Book a free 15-minute call or call 1 (800) 285-1140. Consultations are available in English, Romanian and Russian.
Author: Andrei Jingan, Attorney at Law, AJ Law Firm (Law Office of Andrei Jingan).
This article is general information, not legal advice. Reading it does not create an attorney-client relationship. Attorney advertising.