New York Becomes the First State to Require Transparency in the Use of AI Actors With New Law

New York has made history as the first state to enact a law requiring transparency in the use of AI-generated actors as well as the use of a person’s name, image, and likeness after death.

Governor Kathy Hochul signed two pieces of legislation on December 11 that intend to slow down the unchecked use of AI in entertainment and ads. The first piece of legislation requires advertisers to disclose whenever AI-generated actors are used instead of humans in commercials they produce.

“The proliferation of deepfakes and other artificial intelligence has blurred the lines between the digital world and reality, costing jobs and harming consumers in the process,” Assembly member Linda B. Rosenthal said of the impact of AI in these niche fields.

The second piece of legislation requires consent from a deceased person’s heirs or estate before their name, image, or likeness can be used for commercial purposes. This has been a hot button topic in the industry over the last few years as many of the greats passing away brought the notion of profiting from their likenesses into question. To be fair, some estates have approved that kind of usage, but it’s still a fairly easy thing to exploit without the necessary guardrails.

McDonald’s unveiled what has to be the most god-awful ad I’ve seen this year – worse than Coca-Cola’s.

Fully AI-generated, that’s one. Looks repulsive, that’s two. More cynical about Christmas than the Grinch, that’s three.

I don’t wanna be the only one suffering, take a look: pic.twitter.com/lRYODLkkBJ

— Theodore McKenzie (@realTedMcKenzie) December 6, 2025

“We are enacting common sense laws that will ensure we are fully transparent when using images generated by artificial intelligence and also prevent the unauthorized commercial use of a deceased individual’s name or likeness,” Hochul explained of the law. “In New York State, we are setting a clear standard that keeps pace with technology, while protecting artists and consumers long after the credits roll.”

State Senator Michael Gianaris also noted: “Film and television production remains an integral part of New York’s economy, and that is why New York will continue to lead in protecting the workers who power this industry.”

The labor union for actors, the Screen Actors Guild, aka SAG-AFTRA, is fully in support of this legislation. “These protections are the direct result of artists, lawmakers and advocates coming together to confront the very real and immediate risks posed by unchecked AI use,” national executive director Duncan Crabtree-Ireland said in a statement. “By mandating transparency and securing consent, New York has drawn a bright line that puts human creativity, integrity and trust first. This is smart, forward-looking legislation that will have national impact.”

Coca-Cola’s annual Christmas advert is AI-generated again this year.

The company says they used even fewer people to make it — “We need to keep moving forward and pushing the envelope… The genie is out of the bottle, and you’re not going to put it back in” pic.twitter.com/g1dogxS8Tq

— DiscussingFilm (@DiscussingFilm) November 3, 2025

The news comes hot on the heels of two controversial AI-generated holiday commercials: one from Coca-Cola, for the second year in a row, and one from McDonald’s. McDonald’s ended up pulling the ad amid a backlash, but Coca-Cola’s remains online.

Jason Zada, founder and chief creative officer of AI studio Secret Level, defended his company’s work on Coke’s Christmas promo. “The haters on the Internet are the loudest. A lot of the people complaining last year were from the creative industry who were just afraid — afraid for their jobs, afraid for what it did. But I think the spot tested really well and average people really enjoyed it.”

Pratik Thakar, global vp and head of generative AI at Coca-Cola, added: “Last year we decided to go all in, and it worked out well for us… Yes, some parts of the industry were not pleased we were using a 100% generative AI film, but that’s part and parcel of doing something pioneering. We understand that concern. But we need to keep moving forward and pushing the envelope. The genie is out of the bottle, and you’re not going to put it back in.”

The use of generative AI to create videos both commercial and non-commercial is one of the hottest topics in all entertainment. OpenAI’s Sora 2 app, for example, has caused significant controversy after it was used to flood social media with videos containing depictions of copyrighted characters including those from popular anime and game franchises such as One Piece, Demon Slayer, Pokémon, and Mario. OpenAI CEO Sam Altman has called Sora 2 videos using copyrighted characters “interactive fan fiction.”

And in September, SAG-AFTRA issued a strongly worded statement in response to the emergence of Tilly Norwood, the AI-generated “actress” that has enraged Hollywood.

Lex Briscuso is a film and television critic and a freelance entertainment writer for IGN. You can follow her on Twitter at @nikonamerica.