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June 17, 2026

Draft Guidelines For Responsible Labelling Of Synthetically Generated Content In Advertising, 2026

Author: Sarvangi Aggarwal

The Advertising Standards Council of India (ASCI) has released draft guidelines (https://www.ascionline.in/wp-content/uploads/2026/05/asci-ai-labelling-guidelines.pdf) on the responsible labelling of AI-generated content in advertising. The proposed framework seeks to address the growing use of AI in advertising while ensuring that advertisements continue to comply with standards of honesty, fairness, decency, and consumer protection. The guidelines have been formulated in alignment with the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2026, and aim to promote transparency without overwhelming consumers with excessive disclosures.

ASCI has adopted a risk-based approach that focuses on the impact of AI-generated content on consumers rather than regulating the technology itself. Under the draft framework, AI use in advertising is considered problematic only where it misleads consumers, creates unrealistic expectations, exploits vulnerable groups, depicts unsafe situations, or uses a person’s likeness without consent, which goes against Chapter I and III of the ASCI Code. All advertisements incorporating AI-generated content must mandatorily comply with the ASCI Code in its entirety.

To determine when disclosures are necessary, the guidelines classify AI-generated advertising content into three categories based on the level of risk posed to consumers. The first category, High Risk (Prohibited Content), covers advertisements that are illegal, deceptive, infringe intellectual property or personality rights, or otherwise violate the ASCI Code. Examples include fabricated testimonials, exaggerated product claims, unauthorized deepfakes, realistic but fictitious locations, misuse of copyrighted works, and AI-generated authority figures that falsely imply expertise or endorsement. Such content remains prohibited regardless of whether it is labelled AI-generated.

The second category, Medium Risk (Labelling Required), includes advertisements where AI-generated content could materially influence consumer decision-making. Mandatory disclosure is required for content which could potentially mislead consumers, such as virtual influencers, AI-generated replicas of real individuals, synthetic demonstrations of product performance, realistic AI-created events or settings, demonstrations of products that do not yet exist, exaggerated AI-generated sound effects relevant to product functionality, and AI-generated sponsored recommendations.

The third category, Low Risk (No Labelling Required), includes routine and non-material uses of AI that do not affect a consumer’s ability to make informed decisions. These include basic image enhancements, colour correction, noise reduction, decorative backgrounds, ambient sound effects, obvious fantasy elements, accessibility tools, and the generation of advertising copy or administrative documents.

Wherever required, advertisers may use labels such as “Audio/Video created using AI” or “Audio/Video enhanced using AI”, subject to ASCI’s disclaimer requirements. Through these guidelines, ASCI seeks to balance transparency and consumer protection while allowing responsible innovation in AI-powered advertising.

Disclaimer: Views, opinions, interpretations are solely those of the author, not of the firm (ALG India Law Offices LLP) nor reflective thereof. Author submissions are not checked for plagiarism or any other aspect before being posted.

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