Dive Brief:
- The Interactive Advertising Bureau released version two of its AI Transparency and Disclosure Framework in an effort to establish an industry baseline for when and how AI use in ads should be disclosed, per information shared with Marketing Dive.
- The updated guidelines recommend finding a balance between transparency and business objectives, warning advertisers that overusing AI disclosures can lead to “label fatigue,” making them less effective in the long-term.
- The update to the framework, which was first published in January, comes as marketers and lawmakers wrestle with how to handle and regulate the fast-moving technology. Since the initial publication, laws and regulations surrounding AI disclosure have taken effect in the European Union, Asia, New York and California.
Dive Insight:
The IAB’s updated framework doesn’t change its previous recommendations, but expands them to incorporate the quickly changing regulatory landscape marketers are facing. Since January, laws and regulations have taken effect in three continents requiring AI labeling in some capacity.
How marketers disclose AI use is outlined in the framework, with version two incorporating how marketers can use the labels required by law. U.S. advertisers can use a standardized sparkle icon or a text label, while a common EU icon isn’t finalized, per press details.
Version two also provides evidence-based support for the guidelines. AI adoption has expanded rapidly, with 83% of ad executives saying they have used the technology in the creative process, a 23 percentage-point jump from 2024, per IAB and Sonata data cited in the guidelines. Marketers have also expressed a need for transparency, with 72% believing there should be an industry standard when it comes to disclosure of AI use in ads, according to an AdvertiserPerceptions study referenced in the framework.
While the data outlined in the framework found 73% of millennials and Gen Z consumers said an ad generated with AI would have no effect on, or even increase, their likelihood of making a purchase, other studies have found that AI-generated ads can negatively impact click-through rates. IAB’s guidelines argue that marketers should balance the need for transparency while keeping business goals in mind.
The updated guidance reiterates that AI disclosures should focus on consumer-facing use cases, including synthetic images or video, digital twins of both living and deceased persons, synthetic voices in specific situations and conversational agents used in advertising. Like the initial guidelines, the second version says no disclosure is needed for standard editing, such as color correction, or other post-production tasks. It is also not needed in “clearly stylized or fantastical imagery.”
"Trust is everything between a brand and its customers, and being honest about AI is part of earning it,” said Caroline Giegerich, vice president of AI at the IAB, in press materials. “That said, not every use of AI needs a label — labeling everything teaches consumers to ignore labels and could negatively impact advertisers. This is why we take a meticulously nuanced position in this framework."
