ASCI advocates ‘risk-based approach’ for synthetically generated content in advertising

ASCI’s draft guidelines push for focusing on consumer outcomes rather than regulating the technology itself

by e4m Staff
Published: May 12, 2026 11:48 AM | 1 min read

ASCI, guidelines, AI, synthetically generated content, advertising

The Advertising Standards Council of India (ASCI) has proposed draft guidelines for labeling synthetically generated content in advertising to enhance transparency and avoid consumer confusion.
These guidelines align with the amended Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules (2026) and focus on consumer outcomes rather than the technology itself.
AI-generated advertising content is categorized into three risk levels: High Risk (prohibited content), Medium Risk (mandatory labeling), and Low Risk (no labeling required).
Labeling is required for medium-risk advertisements where AI significantly influences consumer decisions, while low-risk content involves minor AI modifications that do not impact informed consumer choices.

The Advertising Standards Council of India (ASCI) has released draft guidelines for the responsible labelling of synthetically generated content in advertising. The guidelines are aligned with the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules (2026), amended on February 10, to ensure transparency while avoiding consumer label fatigue around synthetically-generated information.

The draft guidelines advocate a risk-based approach, focusing on consumer outcomes rather than regulating the technology itself.

AI use in advertising is considered misleading or harmful only when it creates unfulfillable expectations, exploits vulnerable populations, depicts unsafe situations, or replicates a real person's likeness without consent.

The requirement to label AI-generated content is based on the risk it poses to consumers.

The guidelines classify AI-generated advertising content into three risk categories:

High Risk (Prohibited Content): High-risk advertisements are those that are illegal, infringe on rights, make misleading claims, or violate the ASCI Code.

Medium Risk (Labelling Required): Medium-risk advertisements are those where AI use materially influences consumer decisions, and the lack of disclosure would mislead consumers. Labelling is mandatory in these cases to help consumers understand the nature of the representation.

Low Risk (No Labelling Required): Low-risk advertisements feature minor modifications or use AI in ways that have no material impact on a consumer’s ability to make an informed choice.