ASCI Mandates Disclosure for AI-Generated Advertising Content in India
India's Advertising Standards Council (ASCI) has released new guidelines requiring brands to disclose the use of synthetically generated content in advertisements when it could materially influence consumer decisions. The rules, which take effect three months after publication, also prohibit fabricated endorsements and unauthorised likenesses, clarifying that an AI disclosure label cannot legitimise an otherwise misleading advertisement.
The Advertising Standards Council of India (ASCI) has introduced new guidelines governing the use of synthetically generated content (SGC) in advertising, setting out when brands must disclose the use of AI-generated material and where such content will not be permitted. The rules will come into effect three months after publication.
The guidelines follow stakeholder consultations on a draft released in May and come as brands increasingly use AI to create, enhance and personalise advertising content.
When disclosure is required
Under the guidelines, disclosure will be mandatory when synthetic content could materially influence a consumer's decision and withholding the information could be misleading. Specific scenarios requiring disclosure include synthetically generated influencers and brand ambassadors, the replication of a real person's voice or likeness with consent for personalised advertising, fabricated events or settings that could affect how consumers understand a product, demonstrations of products that do not yet exist, and AI-generated sound effects closely linked to a product's core features.
Paid or sponsored AI-generated product recommendations must carry a specific disclosure: "Sponsored by [Brand]".
What an AI label cannot excuse
ASCI has drawn a clear distinction between disclosure and broader compliance. Advertisements that fabricate endorsements, exaggerate product results, create fictional locations and present them as real, use unauthorised copyrighted material, or deploy a person's likeness without consent remain prohibited regardless of labelling. According to the guidelines, adding an "AI-generated" label will not make an otherwise misleading advertisement compliant with the ASCI Code, and all advertising using synthetically generated content will continue to be assessed under the ASCI Code in its entirety.
Exemptions from disclosure
The guidelines specify that routine editing — such as colour correction, lighting adjustments, noise reduction and minor blemish removal — will not require disclosure where it has no material impact on a consumer's ability to make an informed choice. Similarly, decorative or ambient elements, obvious fantasy effects, administrative or text-based applications such as generating advertising copy, and accessibility tools including subtitles, translations and accurate audio descriptions will not require an AI label.
Permitted label formats
Where disclosure is required, brands may use labels such as "Audio/Video created using AI" or "Audio/Video enhanced using AI". Platform-provided labels are also acceptable, and alternative wording is permitted provided it accurately communicates the nature of the synthetic content. ASCI said disclosures must also comply with its existing rules around disclaimers.
Manisha Kapoor, Secretary General and CEO of ASCI, said the framework is intended to keep pace with the rapid evolution of AI while ensuring consumers are not misled. Kapoor said the responsibility remains with advertisers to ensure honest, transparent and compliant communication.
Prepared with AI assistance by Endata and reviewed by the editorial team.
