Dive Brief:

  • The Interactive Advertising Bureau (IAB) has released version two of its AI Transparency and Disclosure Framework, aiming to establish an industry baseline for when and how AI use in advertisements should be disclosed, according to information shared with Marketing Dive.
  • The updated guidelines recommend balancing transparency with business objectives, cautioning advertisers that excessive AI disclosures can lead to "label fatigue," reducing their long-term effectiveness.
  • The framework revision, first published in January, arrives as marketers and lawmakers grapple with regulating the rapidly evolving technology. Since the initial release, AI disclosure laws and regulations have taken effect in the European Union, Asia, New York, and California.

Dive Insight:

The IAB's updated framework does not alter its previous recommendations but expands them to incorporate the shifting regulatory landscape facing marketers. Since January, laws and regulations across three continents have mandated some form of AI labeling.

The framework outlines how marketers can disclose AI use, with version two detailing how to apply legally required labels. U.S. advertisers may use a standardized sparkle icon or a text label, while a common EU icon has not yet been finalized, per press details.

Version two also provides evidence-based support for its guidelines. AI adoption has surged, with 83% of ad executives reporting use of the technology in the creative process—a 23 percentage-point increase from 2024, according to IAB and Sonata data cited in the guidelines. Marketers have also expressed a need for transparency, with 72% believing an industry standard for AI disclosure in ads is necessary, based on an AdvertiserPerceptions study referenced in the framework.

While the framework's data shows that 73% of millennials and Gen Z consumers said an AI-generated ad would have no effect on—or even increase—their likelihood to purchase, other studies have found that AI-generated ads can negatively impact click-through rates. The IAB guidelines argue that marketers should balance transparency needs with business goals.

The updated guidance reiterates that AI disclosures should focus on consumer-facing use cases, including synthetic images or video, digital twins of both living and deceased persons, synthetic voices in specific situations, and conversational agents used in advertising. As with the initial guidelines, version two states that no disclosure is needed for standard editing, such as color correction, or other post-production tasks. It is also unnecessary for "clearly stylized or fantastical imagery."

"Trust is everything between a brand and its customers, and being honest about AI is part of earning it," said Caroline Giegerich, vice president of AI at the IAB, in press materials. "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."