ASCI DRAFTS AI LABELLING RULES TO REIN IN SYNTHETIC ADVERTISING

India’s advertising watchdog has proposed new draft guidelines requiring brands to label AI-generated advertising content where it could materially influence consumer decisions. The framework targets misleading deepfakes, synthetic influencers and fabricated endorsements, while allowing routine AI enhancements without disclosure under a risk-based regulatory approach.

India’s advertising industry is moving towards tighter oversight of artificial intelligence-driven campaigns after the Advertising Standards Council of India (ASCI) released draft guidelines for the responsible labelling of synthetically generated advertising content.

The proposals arrive at a moment when AI-generated imagery, cloned voices and deepfake-style promotional material are increasingly finding their way into mainstream marketing campaigns. ASCI’s draft framework seeks to balance technological innovation with consumer protection by focusing not on the use of AI itself, but on whether such content could mislead, manipulate or create unrealistic expectations among audiences.

Under the proposed rules, synthetically generated content includes advertisements that are artificially created, modified or materially altered to appear authentic. The scope covers deepfakes, synthetic spokespersons, AI-generated voices and materially altered visuals. ASCI noted that AI becomes problematic only when it misleads consumers, exploits vulnerable groups, depicts unsafe situations or reproduces a real person’s likeness without consent.

Central to the proposal is a three-tier risk-based framework that classifies AI-generated advertisements into high, medium and low-risk categories. High-risk content would effectively remain prohibited even if disclosures are added. This includes fabricated endorsements, exaggerated product performance claims, fake locations presented as genuine, unauthorised deepfakes and AI-generated authority figures such as fictitious doctors endorsing health products.

The medium-risk category, where mandatory disclosure labels would apply, reflects the areas where AI is increasingly shaping commercial storytelling. ASCI identified virtual influencers, AI-generated replicas of real people, fabricated events or settings, non-existent products represented through realistic visualisation and exaggerated AI-generated sound effects linked to core product features as examples requiring transparency. Sponsored AI-generated product recommendations would also need explicit labelling.

At the other end of the spectrum, the draft guidelines exempt what ASCI considers low-risk applications from disclosure requirements. Routine editing practices such as colour correction, lighting adjustments, background enhancements, ambient AI-generated music and fantastical effects like dragons or fairies would not require labels because they are unlikely to materially influence consumer decisions. Administrative uses of AI, including generating advertising copy or accessibility descriptions, would also remain outside the disclosure mandate.

The proposed disclosure language itself is relatively straightforward. Brands may use labels such as “Audio/Video created using AI” or “Audio/Video enhanced using AI”, provided the disclaimers clearly inform consumers about the nature of the synthetic content. However, ASCI stressed that labels alone would not legitimise advertisements deemed misleading or harmful under the wider ASCI Code.

The guidelines also align with amendments to the SGI Rules introduced earlier this year, reflecting a broader regulatory shift towards transparency in digital communications. Yet the council appears keen to avoid overwhelming consumers with excessive disclaimers, warning against “consumer label fatigue” while attempting to preserve trust in advertising.

The draft signals a significant moment for India’s advertising ecosystem, where AI-generated content is rapidly becoming both a creative tool and a commercial risk. By distinguishing between harmless enhancement and deceptive manipulation, ASCI is attempting to establish guardrails for an industry racing to integrate artificial intelligence into every aspect of brand communication.