The Advertising Standards Council of India (ASCI) has released draft guidelines for the responsible labelling of synthetically generated content in advertising, as the use of Artificial Intelligence continues to grow in brand campaigns.
The guidelines are aligned with the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2026, notified on February 10, and aim to ensure transparency while avoiding excessive or unnecessary disclosures that could lead to consumer fatigue.
ASCI has adopted a risk-based approach, focusing on the potential impact on consumers rather than regulating the use of AI itself. Under the framework, AI-driven advertising is considered problematic only when it misleads consumers, creates unrealistic expectations, exploits vulnerable groups, depicts unsafe scenarios, or uses a real person’s likeness without consent.
The draft categorises AI-generated content into three risk levels:
High Risk (Prohibited Content):
Advertisements that are illegal, misleading, or violate the ASCI Code fall under this category and remain prohibited regardless of labelling. These include fabricated endorsements, exaggerated product claims, fake locations presented as real, unauthorised use of deepfakes or likeness, and AI-generated authority figures such as fake doctors implying expertise.
Medium Risk (Labelling Required):
Content where AI materially influences consumer decisions must be clearly disclosed. This includes virtual influencers, AI-generated replicas of real individuals (even with consent), synthetic product demonstrations, fictional yet realistic scenarios, and AI-driven sponsored recommendations. Standard disclosures such as “Audio/Video created using AI” may be used.
Low Risk (No Labelling Required):
Routine or non-material uses of AI do not require disclosure. These include basic edits like colour correction, background enhancements, ambient sound, clearly fictional elements, and administrative uses such as copy generation or accessibility features.
ASCI stated that all disclosures must adhere to its existing disclaimer guidelines where applicable.
The draft guidelines are now open for public consultation. ASCI has invited feedback from industry stakeholders, consumer groups, and the public until June 13, 2026, after which the final framework will be formalised.
