India
ASCI Issues New Guidelines for Responsible Labelling of AI-Generated Content in Advertising: The Advertising Standards Council of India (ASCI) has released new guidelines governing the responsible labelling of Synthetically Generated Content (SGC) in advertising, introducing a risk-based framework designed to improve transparency while protecting consumers from misleading or harmful AI-generated representations.
The guidelines, dated September 17, 2026, address the growing use of artificial intelligence and other computer-based technologies to create or materially alter audio, visual and audiovisual advertising content. They will come into effect three months after publication.
Focus on Consumer Protection
ASCI defines Synthetically Generated Content as advertising audio, visual or audiovisual material that has been artificially or algorithmically created, modified or materially altered to appear real, authentic or true, including representations that could be perceived as depicting real people or real-world events.
Rather than regulating AI technology itself, the guidelines focus on its impact on consumers. ASCI says SGC becomes a concern when it can create unfulfillable expectations, exploit vulnerable consumers, depict unsafe situations, replicate a person’s likeness without consent or provide false or misleading information.
All advertising containing AI-generated SGC remains subject to the entire ASCI Code.
Three-Part Framework
The new framework broadly divides AI-generated advertising content into three categories: prohibited content, content requiring mandatory labelling and content that does not require labelling.
Prohibited AI Advertising
ASCI states that certain uses remain prohibited even when an AI disclosure is provided.
These include fabricating endorsements or testimonials that falsely suggest a real person used, approved or recommended a product; using AI to exaggerate product results; depicting non-existent locations as real; and using unauthorised copyrighted material, deepfakes or an individual’s likeness without consent.
The guidelines make clear that simply adding an “AI-generated” label does not make otherwise misleading or prohibited advertising acceptable.
When AI Labelling Is Mandatory
Labelling is required when SGC materially influences consumer decisions and failing to disclose its use could mislead consumers about the representation.
Examples include synthetically generated influencers and ambassadors, digitally replicated versions of real people’s faces or voices—even with consent when used for personalised messaging—and fabricated events or situations that could affect consumers’ understanding of a product’s performance.
The requirement also applies to demonstrations of products that do not yet exist, such as a digitally generated representation of an unbuilt housing development.
AI-generated sound effects can also require disclosure when they are highly relevant to a product’s core features—for example, sound effects demonstrating the audio quality of headphones.
AI Recommendations Must Identify Sponsorship
One notable provision addresses AI-powered product recommendations.
Where a brand has paid for or sponsored an AI recommendation, the content must specifically identify the commercial relationship using a disclosure such as “Sponsored by [Brand].”
ASCI provides the example of a consumer asking an AI chatbot for a moisturiser recommendation and a particular product being suggested because the brand paid for the recommendation. The commercial influence must be clearly communicated to the consumer.
Not Every Use of AI Requires a Label
ASCI has also sought to avoid excessive disclosure or what it describes as consumer label fatigue.
No label is required for low-impact uses of synthetic content that do not materially affect a consumer’s ability to make an informed decision. These include routine colour correction, lighting adjustments, noise reduction, standard blemish removal, formatting and copy refinement where the substance or core claims of the advertisement are unchanged.
Decorative AI-generated backgrounds, abstract skylines, ambient music, jingles and unrelated background sound effects also fall within the no-labelling category.
Similarly, clearly fantastical elements that audiences understand are not real—for example, magical or impossible scenarios—do not require an AI label under the guidelines.
AI-assisted accessibility functions, including subtitles, captions, translations and accurate audio descriptions for visually impaired audiences, are also exempt from labelling.
Disclosure Labels
Where disclosure is required, advertisers may use labels supplied by advertising platforms or their own clear wording.
ASCI gives examples including “Audio/Video created using AI” and “Audio/Video enhanced using AI.” Alternative wording is permitted provided it accurately informs consumers.
For sponsored AI recommendations, the disclosure should explicitly identify the sponsoring brand.
AI Does Not Override Advertising Standards
ASCI stresses that the presence of a disclosure does not automatically make an advertisement compliant.
The organisation states that SGC may still be considered misleading or objectionable regardless of whether a label is provided if its overall effect is likely to mislead or harm consumers. All such advertising remains subject to the ASCI Code.
A New Standard for India’s AI Advertising Economy
The guidelines arrive as artificial intelligence becomes increasingly integrated into advertising production, including synthetic influencers, digital replicas, AI-generated environments, automated recommendations, voice generation and image and video creation.
ASCI’s framework establishes a distinction between using AI as a production tool and using synthetic content in a way that could materially influence consumer understanding or purchasing decisions.
With the guidelines taking effect three months after publication, advertisers, agencies, platforms, creators and brands will need to assess how AI-generated elements are used in their campaigns and whether disclosure is necessary.
The move represents another step in India’s evolving effort to establish greater transparency, accountability and consumer protection in an increasingly AI-driven advertising ecosystem.
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