California’s AI Act: What the New Law on Synthetic Performers Means for Advertisers and Consumers
Why It Matters
AI-generated people and voices are showing up in more ads, and California is now requiring advertisers to say so. Starting January 1st, any ad that prominently features a realistic synthetic performer needs a clear, conspicuous disclosure. Violations count as unlawful advertising, with fines and court orders that can force platforms to pull the ad and stop taking payment for it. The law can reach anyone whose ads are seen by Californians, not just brands based there, and other states and countries may follow. Building a disclosure process now is far easier than scrambling after the rules spread, especially with AI UGC and avatar-style creative becoming a standard part of ad accounts.
Who This Is For
Built for Founders members running paid creative that uses AI-generated avatars, voices, or UGC-style performers, especially brands and agencies advertising to U.S. audiences. If your team is scaling AI creative and hasn’t yet worked out how to handle disclosure, this is your heads-up on what’s coming.
AI is advancing rapidly, producing synthetic content that is increasingly widespread and convincingly realistic. But with all this tech comes a bunch of questions, including: how do we keep things transparent in advertising? California’s got a new bill that’s trying to tackle this.
Basically, if you’re running ads with AI-generated people, you’ve got to be transparent about it. Let’s break down what’s in the law, what people are saying online, and what it means for you.
What Does the AI Act Do?
The core of the law is simple: if an ad prominently features a synthetic performer, meaning a realistic digital figure, voice, or representation created with generative AI that gives the impression of a real human, advertisers must include a clear and conspicuous disclosure using direct language such as “this performance features a synthetic performer” or “no human performer is depicted.”
The point of the act is to stop ads from tricking people into thinking they’re seeing a real person when it’s actually an AI creation.
If You Haven’t Read Our New York Breakdown Yet, Start There
California isn’t the first state to require AI disclosures in ads. New York’s synthetic performer law took effect on June 9, 2026, and it applies to every paid channel an ad runs on: Meta, Google, YouTube, TikTok, CTV, and display. If you haven’t read it yet, check out our full breakdown: New York’s AI advertising law: What it means for your brand or agency right now. It covers what counts as an AI-generated human (and what doesn’t), the penalties, and a five-step checklist for auditing your live creative. Most of that checklist works for California too.
Social Media Reactions: Loopholes, Opportunities, and Criticisms
The digital marketing and e-commerce communities have been quick to weigh in.
Some commentators joked that the law could be gamed: “We can start reporting every single ad as AI even if it’s real—brands have to prove it’s not. Someone could create a bot to report nonstop and flood their inbox.”
Others wondered how the law will affect businesses outside California, or whether it could inspire similar regulations elsewhere.
There’s also skepticism about enforcement and unintended consequences, with one user noting that “California’s love of PAGA’s is brutal. They did it with employment. They did it with Prop 69 even if you don’t live in the state and ship here. People have no idea.”
Not everyone is worried: Some see the requirements as positive, while others dismiss them as not relevant to their business.
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Key Details from the Bill
Who’s Covered? Anyone creating or publishing ads in California that use synthetic performers.
What’s Required? Clear, easy-to-understand disclosure when you use synthetic performers.
What Counts as a Synthetic Performer? Any digital figure, voice, or representation made (in whole or part) with generative AI, intended to look or sound like a real human (but not an identifiable, real person).
Exemptions: The law doesn’t restrict the creation or distribution of synthetic content itself, nor does it apply to movies, TV, video games, or other expressive works where the use of synthetic performers is consistent with the work. Accessibility features, such as language translation for a human performer, are also exempt.
Penalties: Violating the law counts as unlawful advertising under existing consumer protection statutes and can lead to fines and court orders.
Enforcement: If a court finds an ad in violation, it can order platforms to remove or block the ad and stop accepting payment for it.
Why Now?
With generative AI getting better and easier to use, it’s getting harder to tell what’s real and what’s not—especially in marketing, where trust really matters.
What It Means for Brands and Agencies
If you’re running ads in California and using AI-generated people or voices, get ready to start adding clear disclosures on January 1st. Even if you’re not in California, your ads might still count if Californians see them.
This is likely just the start.Other states or countries could jump on board, so if you’re a brand, now’s the time to start thinking about how you handle disclosure and transparency with AI.
Bottom Line:
California’s AI Act is a major step toward transparency in advertising.
If you use AI-generated performers, start preparing for mandatory disclosures.
Expect more jurisdictions to consider similar laws as synthetic content spreads.
The age of AI in advertising is officially here, and so are the new rules.
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Note: This blog was written by a human, but AI helped draft the outline and synthesize ideas.
