The Advertising Standards Council of India has unveiled comprehensive rules for labelling and disclosure of AI-generated content in advertising, aiming to enhance transparency and protect consumers from misleading synthetic content.
The Advertising Standards Council of India has moved to set clearer rules for the use of synthetically generated content in advertising, issuing guidance that separates harmless enhancement from material disclosure risks. The framework follows consultations on draft rules circulated in May and reflects a broader concern that artificial intelligence is increasingly being used not just to polish campaigns, but to shape what consumers believe they are seeing. Industry reports on the draft said ASCI was aiming for a risk-based model focused on consumer impact rather than on the technology itself.
According to ASCI’s announcement, the key test is whether synthetic content could alter a consumer’s understanding of an advert in a meaningful way. The council said the guidance is designed to address situations in which AI-generated material creates unrealistic expectations, targets vulnerable audiences, depicts unsafe situations, or uses a person’s likeness without consent. Media reports on the draft rules noted that ASCI had also sought to avoid unnecessary disclosure overload, with the framework intended to reduce label fatigue rather than force warnings on every use of AI.
The new rules divide uses of synthetic content into broad categories. Content that is illegal, misleading or otherwise breaches the ASCI Code remains prohibited even if it carries an AI label. That includes fabricated testimonials, misleading depictions of product performance, false locations, unauthorised use of copyrighted material and deepfakes or likenesses used without consent. By contrast, disclosure becomes mandatory where synthetic elements are likely to influence consumer decisions, including AI-generated influencers, synthetic voices or faces used with consent for personalised messaging, fictitious settings that could affect understanding, and demonstrations of products that do not yet exist. Paid or sponsored AI-generated product suggestions must be labelled “Sponsored by [Brand]”.
ASCI also drew a line around routine production work that does not, in its view, require disclosure. That includes colour correction, lighting changes, noise reduction, minor retouching, decorative effects, obvious fantasy elements, and administrative uses such as generating copy or subtitles. The council said that where disclosure is needed, advertisers may use labels such as “Audio/Video created using AI” or “Audio/Video enhanced using AI”, provided the wording accurately describes the synthetic content. Manisha Kapoor, ASCI’s secretary general and chief executive, said the responsibility still sits with advertisers to ensure that the final communication remains honest, transparent and compliant with the code. The guidelines are due to take effect three months after publication, and ASCI said all adverts using synthetic content will continue to be judged against the full code.
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