IAB Updates Industry Framework for Consistent AI Transparency & Disclosure in Advertising

The Interactive Advertising Bureau (IAB), the leading trade association for the digital advertising industry, today announced the AI Transparency and Disclosure Framework Version 2, building on IAB’s original framework published with practical guidance for when and how advertisers, agencies, publishers, platforms and technology partners should disclose AI involvement in consumer-facing advertising and marketing content.

“Trust is everything between a brand and its customers, and being honest about AI is part of earning it,” said Caroline Giegerich, VP, AI, IAB. “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.”

Read More – The Hidden Risks of Unregulated AI in Marketing Operations

The Data Behind the Decision

IAB launched its first AI Transparency and Disclosure Framework in January 2026, alongside proprietary research conducted with Sonata Insights. The research found that while some consumers viewed AI use in creative contexts positively, others saw it as inauthentic.

Despite that mixed perception, more than half said they wanted brands to disclose when an ad was fully AI-generated or used AI imagery or video, and 73% of Gen Z and Millennials said clear disclosure would increase or have no impact on their likelihood to purchase a product.

Regulatory Momentum

Since IAB published the original framework in January 2026, regulators in the United States, the European Union (EU) and Asia have moved from proposal to enforcement. New York’s synthetic performer law, signed in December 2025, took effect in June 2026. California’s SB 942, which introduced metadata and labeling requirements, took effect on August 2, 2026. South Korea’s revised AI Basic Act imposed AI labeling mandates early this year. In the European Union, Article 50 of the AI Act went into effect on August 2, 2026. The European Commission published its final Code of Practice supporting that law, a voluntary compliance framework developed with input from industry, academia and EU member states, in June 2026.

The framework is designed to represent the advertising industry perspective, not replace state and international regulation, which takes precedence over industry self-regulation. As jurisdictions adopt different disclosure thresholds and formats, the framework gives advertisers, agencies, publishers, platforms and technology partners a shared industry baseline for compliance, rather than requiring a jurisdiction-by-jurisdiction approach.

Read More – How CMOs Are Using Generative AI for Campaign Strategy

Balancing Under-Disclosure and Over-Disclosure

IAB calls for targeted disclosure rather than universal labeling, particularly when AI use materially affects authenticity, identity or representation in ways that could mislead consumers. The framework provides easily accessible content format recommendations for disclosing high-risk use cases that warrant disclosure. These include images and videos generated from prompts, some synthetic voices, synthetic avatars, digital twins of deceased individuals, digital twins of living individuals in fabricated situations outside standard brand endorsement, and AI chatbots or assistants that could be mistaken for human representatives.

The framework also provides guidelines on what does not need disclosure. This includes routine post-production, internal workflows, clearly fantastical imagery, authorized synthetic voices of real individuals, generic synthetic voices, background music, standard audio enhancement, digital twins in standard brand endorsement, obvious cartoon or stylized avatars, text or copy, none of which should automatically require labels.

“The working group’s central challenge was avoiding two failure points,” Giegerich continued. “Under-disclosure leaves consumers at risk of being misled. Over-disclosure could risk negatively impacting advertisers.”

An Open Approach to Labeling

Advertisers in the U.S. can choose between a standardized sparkle icon or a clear text label. Either fully satisfies the disclosure requirement, and lets advertisers choose the method best suited to the format and placement.

Advertisers in the EU face a more evolving approach under the AI Act. The transparency obligations in Article 50 become binding on August 2, 2026, requiring AI-generated content and deepfakes to be disclosed, but Article 50 does not prescribe a specific icon. The accompanying Code of Practice, finalized in early June 2026, is voluntary. It sets design and placement requirements for AI labels and includes illustrative examples of a possible common EU icon that has not yet been finalized.

The framework also includes accessibility requirements for the standardized label.

“Trust is a foundational element which is critical to the growth of AI across the ecosystem. Putting the right transparency and disclosure standards in place benefits everybody: consumers, advertisers, agencies, publishers and platforms,” said David Cohen, CEO, IAB. “This is how collective growth happens.”

Write to us [⁠wasim.a@demandmediaagency.com] to learn more about our exclusive editorial packages and programmes.