ASCI’s AI ad labelling rules: what marketers must disclose

India’s advertising watchdog has drawn a clearer line between creative AI use and consumer deception. The Advertising Standards Council of India (ASCI) has released its guidelines for Responsible Labelling of Synthetically Generated Content in Advertising, effective three months from publication. The framework follows stakeholder consultations on a draft issued in May.

The central logic is not “ban AI” but a materiality test: synthetic content must be disclosed when its absence could mislead a consumer about a product. If AI merely cleans up audio or removes a blemish, it is background craft. If it fabricates an influencer, a product demo or a personalised voice, it becomes decision-shaping.

What stays label-free

Routine edits such as colour correction, lighting adjustments, noise reduction and minor blemish removal do not require disclosure. Obvious fantastical effects, decorative or ambient elements, and accessibility tools such as subtitles, translations and accurate audio descriptions are also exempt. Administrative uses, including generating advertising copy, fall outside the labelling requirement.

When disclosure becomes mandatory

Mandatory disclosure kicks in for synthetic elements that materially influence consumer decisions, including:

• Synthetically generated influencers or ambassadors
• Replication of a real person’s likeness or voice with consent for personalised messaging
• Fabricated events or settings that shape product understanding
• Demonstrations of products that do not currently exist
• AI-generated sound effects tied to core product features

Paid or sponsored AI-generated product recommendations must also carry the disclosure “Sponsored by [Brand]”.

An AI label is not a free pass

ASCI is explicit that an AI label does not make an otherwise misleading or non-compliant advertisement acceptable. Fabricated endorsements, misleading synthetic representations of results, fake locations presented as real, unauthorised copyrighted work and deepfakes without consent remain prohibited even if labelled.

Manisha Kapoor, secretary general and CEO of ASCI, said:

“The use of AI in advertising is evolving rapidly, and our approach must evolve with it while keeping the consumer at the centre.”

She added that the responsibility remains with advertisers to ensure the end communication is honest, transparent and compliant with the ASCI Code. Where disclosure is required, advertisers can use labels such as “Audio/Video created using AI” or “Audio/Video enhanced using AI”, including labels provided by advertising platforms. Alternative labels are allowed if they accurately communicate the nature of the synthetic content.

Why this matters for brand teams

The three-month window is a useful forcing function. Mark every AI-generated or AI-enhanced asset as material or non-material. If the synthetic element could change purchase belief, disclose. If it is invisible craft, move on. Over-labelling adds clutter and may train consumers to discount ads; under-labelling risks complaints, loss of trust and regulatory action. From a consumer behaviour lens, a label signals the brain to evaluate authenticity rather than accept the scene as documentary evidence. When a brand skips that cue for a synthetic influencer, the audience may infer a real endorsement—exactly the kind of material influence ASCI is targeting.

Source: Afaqs!