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New York is already penalizing the use of AI-generated UGC in advertising, and Spain will be next

In short

  • New York will require brands to clearly disclose whether they use AI-generated synthetic performers in their ads.
  • Global campaigns may be exposed to sanctions and blocking if they do not include the correct disclosure for certain audiences.
  • European and Spanish regulation could follow this precedent, so it is advisable to prepare a legal contingency plan.
In this article

The regulatory oasis in which Spanish brands freely experimented with generative Artificial Intelligence is coming to an end. While in Europe we debate deadlines and abstract ethical frameworks, on the other side of the Atlantic they have moved directly to punitive action.

From next June 9, 2026, the amendment to the General Business Law (SB-8420A) comes into force in New York. A draconian regulation requiring any brand to clearly and prominently disclose on screen whether it has used a synthetic performer (AI-generated humans, faces or voices) in its ads. In other words, AI-generated UGC. More info.

Under the banner of “transparency,” this law is actually a missile aimed at the waterline of corporate efficiency. And even if you think New York is far away, the impact on the Spanish market is immediate, and its arrival in Europe is inevitable.

Worth reading: Is it legal to create an AI avatar to make branded UGC for social media?

The trap of the “warning label”

Creating hyperrealistic models, avatars or voiceovers using AI enabled brands in our country to democratize their production costs and compete globally without million-euro budgets. Using synthetic actors eliminated the friction of castings, endless image rights negotiations and never-ending productions.

The new US law, driven by intense pressure from traditional unions such as SAG-AFTRA, seeks to penalize this competitive advantage. Requiring a visible sign stating “AI-generated person” is not intended to inform; it is intended to break the magic of the content, destroy consumer immersion and generate unjustified distrust toward brands that optimize their resources.

The immediate danger for Spanish brands: The digital environment knows no borders. If your brand distributes global campaigns through Meta, Google or TikTok and a New York resident views your ad without the correct disclosure, your company faces sanctions and the immediate blocking of the campaign on the platforms.

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A chronicle of a regulation foretold in Spain

Why should this concern us in Spain today? Because the European regulatory ecosystem always follows the lead of US restrictions as soon as it sees a precedent.

With the European Union AI Act already rolling out its implementation phases, Brussels regulators and Spain’s own Digital Agenda are watching the New York experiment very closely. Mandatory labeling of “synthetic humans” in national advertising is not a possibility; it is a countdown that has already begun.

When this rule crosses the Atlantic, brands that have built their entire content and virtual influencer strategy without a legal contingency plan will see their workflows collapse overnight in the face of bureaucracy.

At HICARI, we firmly believe in companies’ use of creative AI, but not in the use of generative AI as a substitute for people.

New York’s June 9, 2026 regulation is the first warning of a change. This is especially aimed at those professionals who believe it is a good idea to create AI-generated UGC.

Official sources consulted:

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About the author

Miguel Palau

CMO / Cofounder HICARI

Writes about UGC, social media content and Paid Media, drawing on the projects we run every day at HICARI.

Frequently asked questions

What does New York’s regulation require regarding AI-generated UGC?

Requires any brand to disclose “clearly and prominently” on screen whether it has used a synthetic performer, such as AI-generated humans, faces or voices, in its ads.

What risk do global campaigns by Spanish brands face?

If a campaign distributed through Meta, Google or TikTok reaches a New York resident without the correct disclosure, the company may face penalties and the immediate blocking of the campaign on the platforms.

Why should this regulation concern Spain?

The European regulatory ecosystem often follows US precedents, and regulators are watching the New York experiment. The requirement to label synthetic humans in national advertising is being presented as a countdown that has already begun.

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