Amazon requires third-party sellers to label AI-generated people in images, complying with New York law

Amazon is now requiring third-party sellers to label any product images or videos that contain "AI-generated people," following a recently enacted New York law that mandates greater transparency around the use of "synthetic performers" in advertising.

Policy Change

The company informed sellers of the policy change on Wednesday, according to a copy of the announcement viewed by CNBC. The policy directs sellers to tag images and any "A+ content"—including videos or other graphics on listing pages—with specific metadata keywords before uploading.

"Recent legislation requires disclosure when images or videos in advertisements contain photorealistic AI-generated people," Amazon wrote in the announcement.

New York Law

The New York law, which took effect last month, requires companies to disclose when "synthetic performers" are used in place of human actors in advertising. The legislation applies to "digitally-created media that appear as a real person." Governor Kathy Hochul described it as a "first-in-the-nation" law.

"Without notice that the content the public is viewing is not real, AI-generated synthetic performers and manipulated media can undermine one's ability to accurately distill fact from fiction," Hochul's office said in a release.

Exceptions and Implementation

Amazon clarified that the requirement does not apply to:

• Content featuring TV, video game, and movie characters
• Content that includes real people, even if they have been altered using AI

The company said it will "add an indicator" to listings on its website, informing consumers when images or other content feature AI-generated people, "where applicable." It remains unclear what criteria Amazon will apply when deciding when to display the label to shoppers.

Amazon did not immediately provide further comment.

Amazon's Growing Use of AI

Amazon has embraced AI internally and is increasingly integrating the technology across its portfolio. The company has:

• Optimized listing titles and details to be more easily spotted by AI systems
• Invested in a recently rebranded assistant called Alexa for Shopping
• Launched a feature that injects AI-generated products into its search bar in real time based on user queries

More Amazon third-party sellers are using AI to generate text, images, and other content for their listings, partly by using the company's tools.

Outside sellers are the engine behind Amazon's core retail business, accounting for more than 60% of goods sold on its marketplace.

Broader Regulatory Context

There is currently no federal law requiring companies to disclose when advertising content has been created using AI.

States have taken steps to require greater transparency around AI content:

• California earlier this year began requiring large AI providers to embed watermarks in AI-generated images, video, or other content.
• Meta, TikTok, Pinterest, and Google's YouTube have added AI-generated content labels to videos and images uploaded to their platforms.

TikTok and Meta have recently been criticized for not adequately labeling ads that feature AI-generated influencers promoting dubious products, in some cases without a brand's knowledge. TikTok has said it has taken steps to ban accounts that make misleading health claims, and Meta said it labels AI videos.

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