Do AI-generated ads and images need a label in India?

Updated 12 October 20269 sources, each openedNo paid placements

The short answer

Sometimes. ASCI's guidelines, signed 17 September 2026, require a label when AI content materially influences a buying decision, such as a synthetic influencer or a product that does not exist1. The IT Rules put the labelling duty mainly on platforms and AI tool providers2. This is general information, not legal advice.

Key facts

  1. ASCI's guidelines are dated 17 September 2026 and take effect on the expiry of three months from publication; the document gives no calendar date1.
  2. ASCI requires a label for synthetic influencers and ambassadors, fabricated events or settings that affect how a product is understood, and demonstrations of products that do not yet exist1.
  3. ASCI says no label is needed for routine edits such as colour correction and noise reduction, decorative backgrounds, obviously fantastical effects, ad copy, and accessibility uses such as subtitles1.
  4. India's IT Rules amendment was notified on 10 February 2026 as G.S.R. 120(E) and, according to a law firm summary, took effect on 20 February 202623.
  5. Under Rule 3(3), an intermediary offering tools that can create synthetic content must label it prominently and embed permanent metadata where technically feasible2.

What do ASCI's AI guidelines say?

ASCI, the Advertising Standards Council of India, defines synthetically generated content as audio, visual or audio-visual material made or altered by AI so that it appears real and shows a person or event in a way likely to be believed as true. That covers images as well as video and sound1. The guidelines sort uses into three groups.

First, some uses are prohibited even with a label. The guidelines name fabricated endorsements or testimonials, AI visuals that exaggerate product results, non-existent locations shown as real, and unauthorised copyrighted work, deepfakes or a person's likeness without consent1.

Second, a label is mandatory when the AI content materially influences a consumer's decision and leaving the label out would mislead. ASCI's examples are below.

Third, no label is needed where AI has no material effect on an informed choice, as listed in the facts above. Where a label is needed, brands may use their own wording or the platform's, such as "Audio/Video created using AI"1. A label does not cure a misleading ad: the whole ASCI Code still applies1.

  • Synthetic influencers and ambassadors.
  • Replicating a real person's likeness or voice, even with their consent, for personalised messaging.
  • Fabricated events, settings or situations that affect how the product or service is understood.
  • Demonstrating a product that does not currently exist, such as a model of an unbuilt housing complex.
  • AI sound effects that are highly relevant to the product's core features.
  • Paid or sponsored AI product suggestions, labelled as sponsored by the brand.

When do the ASCI rules start?

The date is unconfirmed. The ASCI document says the guidelines take effect three months after publication but states no calendar date, and the PDF is signed 17 September 20261. Trade press reported the release on 29 September 20264. Counting three months from those two dates gives mid to late December 2026. Outlets may report a different day, so plan to be ready by the end of December 2026 and check ASCI's own notice for the exact date.

What do India's IT Rules 2026 require, and from whom?

The February 2026 amendment defines synthetically generated information as audio, visual or audio-visual information made or altered by computer so that it appears real and is indistinguishable from a natural person or real-world event. It excludes routine editing, colour adjustment, noise reduction, compression, and uses that only improve accessibility or translation2.

The duties sit on intermediaries. Under Rule 3(3), a platform that offers a tool for creating synthetic content must use technical measures to block unlawful material, label the rest prominently, embed permanent metadata where feasible, and not let the label be removed. Under Rule 4(1A), a significant social media intermediary must require users to declare whether content is synthetic, verify the declaration, and label confirmed content2.

The rule text names intermediaries, not advertisers. In practice, expect a declaration prompt when you upload realistic AI media to a large platform, and answer it honestly2.

One change is still only a draft. A MeitY draft placed in the public domain on 30 March 2026 would replace the current prominent-visibility wording with a label that stays visible throughout a video, with comments open until 7 May 2026. MediaNama reported it as a draft, and we found no final notification, so its status is unconfirmed5.

Who carries the duty: the brand, the agency or the platform?

ASCI's chief executive said responsibility stays with advertisers to make sure the final communication is honest, transparent and compliant with the ASCI Code4. The IT Rules, by contrast, bind platforms and tool providers2. An ad can fall under both.

If an agency or studio makes the ad, agree in writing who decides whether a label is needed, who writes it, and who keeps the record of which parts were AI-generated.

What about the US and the EU?

In the EU, Article 50 of the AI Act requires deployers of an AI system that generates or alters image, audio or video resembling real people, objects or places to disclose that it is artificially generated. Evidently artistic, creative or fictional works get a lighter duty. The article's page lists 2 August 2026 as its date6. This page does not cover the separate duties on AI providers to mark their output.

In the US, the federal item we cite is the FTC's final rule of 14 August 2024, which bans fake and AI-generated reviews and testimonials that misrepresent a person who does not exist7. New York requires ads using a synthetic performer to disclose it conspicuously from 9 June 2026, with civil penalties of $1,000 for a first violation and $5,000 for later ones8. Google Ads names the EU, India and New York as places with AI disclosure rules9.

What should I do before I publish?

Work through each AI element of the ad, not the ad as a whole.

  • List the AI elements: people, voices, scenes, products, music, sound effects.
  • For each, ask whether it changes what a buyer would believe about the product. If yes, label it. If it fits ASCI's no-label list, you can leave it.
  • Do not use AI to make a testimonial, a before-and-after result, or a place that does not exist. A label does not make these acceptable1.
  • Keep written consent for any real person whose face or voice is replicated.
  • Burn the label into the ad and use each platform's own AI label setting where one exists. Google says its label setting does not guarantee compliance with specific regulations9.
  • Have a lawyer review anything high-risk, such as health, finance or endorsements.

Our side, stated plainly

What KanavuLab does

For films and images made in our studio, generated people and scenes are disclosed as generated and are never presented as real customers. The storyboard is approved before anything is rendered, and you approve everything that goes out under your name, including how it is labelled.

We are not a law firm. For your own ads, treat this page as general information and ask a lawyer about your specific case. Video work is scoped and quoted after a 20-minute call.

Follow-up questions

Does a small business running Instagram ads need to label AI images?

It depends on what the AI did. Under ASCI, a label is needed when AI content materially influences the buying decision, such as a synthetic ambassador. Routine edits, decorative backgrounds and AI-written copy need none1. The platform may also ask you to declare realistic AI media at upload2. This is general information, not legal advice.

Does an AI label make a misleading ad acceptable?

No. ASCI lists uses that are prohibited whether or not a label is used, including fabricated endorsements and a person's likeness without consent, and says all AI ads must comply with the whole ASCI Code1.

Are the IT Rules label and the ASCI label the same thing?

No. They come from different bodies and aim at different parties. The IT Rules, issued by MeitY, set duties for platforms and tool providers2. The ASCI guidelines address advertisers and apply the ASCI Code to ads1.

Do I need a label for AI-written ad copy?

ASCI lists generating or enhancing advertising copy among the uses that need no label1.

Sources

Every source was opened before this page was published. Figures from vendors who sell in this market are labelled as such in the text.

  1. ASCI Guidelines for Responsible Labelling of Synthetically Generated Content in Advertising, 17 September 2026. Opened 12 October 2026
  2. MeitY, Government of India IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, updated 10 February 2026, 10 February 2026. Opened 12 October 2026
  3. HLC India introduces mandatory labelling for AI and 3-hour takedown for illegal content. Opened 12 October 2026
  4. MediaNews4U ASCI issues guidelines for labelling AI-generated content in advertising, 29 September 2026. Opened 12 October 2026
  5. MediaNama MeitY draft would require AI labels to stay visible for the full duration of content, 23 April 2026. Opened 12 October 2026
  6. EU Artificial Intelligence Act Article 50: Transparency obligations for providers and deployers of certain AI systems. Opened 12 October 2026
  7. US Federal Trade Commission FTC announces final rule banning fake reviews and testimonials, 14 August 2024. Opened 12 October 2026
  8. Hunton Andrews Kurth New York enacts law regulating the use of AI-generated synthetic performers in advertising, December 2025. Opened 12 October 2026
  9. Google Advertising Policies Help Updates to AI labeling requirements (July 2026), 9 July 2026. Opened 12 October 2026

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Scoped and quoted after the call. Not the right fit? We will say so.