ASCI Releases Draft Guidelines for Responsible Labelling of AI-Generated Content in Advertising

The Advertising Standards Council of India (ASCI) on Tuesday released draft guidelines for the responsible labelling of Artificial Intelligence (AI)-generated content in advertising, amid growing use of AI-powered campaigns by brands across sectors.The proposed guidelines, aligned with the amended Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2026, aim to ensure transparency for consumers while avoiding excessive disclosure requirements that may lead to “label fatigue.”ASCI said the framework follows a risk-based approach, focusing on consumer impact rather than regulating the technology itself. According to the draft, AI-generated advertising would be considered misleading or harmful if it creates false expectations, exploits vulnerable consumers, depicts unsafe situations, or uses a person’s likeness without consent.

The guidelines divide AI-generated advertising into three categories — high risk, medium risk, and low risk. High-risk content, including fabricated endorsements, deepfakes, fake doctors, misleading product demonstrations, and unauthorised use of likeness, will remain prohibited even if labelled.Medium-risk advertisements, such as AI-generated influencers, synthetic product demonstrations, or realistic AI-created events, will require mandatory disclosures like “Audio/Video created using AI.”Meanwhile, low-risk uses including colour correction, minor editing, ambient AI-generated backgrounds, and fantasy elements will not need labelling.

In Kolkata, the draft framework could significantly impact digital advertising agencies, e-commerce brands, and influencer-driven campaigns operating in eastern India. Marketing professionals believe clearer disclosure norms may improve consumer trust while encouraging responsible adoption of AI tools in advertising and branded content creation.ASCI has invited feedback from industry stakeholders, consumer groups, and the public till June 13, after which the guidelines will be finalised.

By Business Bureau