Amazon requires third-party sellers to label product images with AI-generated people

Amazon is now requiring third-party sellers to label any product images or videos that feature "AI-generated people," following the enactment of a new New York law mandating transparency around synthetic performers in advertising.

Policy Change

The company informed sellers of the policy change on Wednesday, according to a copy of the announcement reviewed by CNBC. Sellers must tag images and "A+ content"—including videos and 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 stated 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 use to determine when to display the label to shoppers. Amazon did not immediately provide a 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 account for more than 60% of goods sold on Amazon's marketplace.

Broader Regulatory Context

There is no federal law requiring companies to disclose when advertising content has been created using AI. However, states have taken steps to require greater transparency:

• California began requiring large AI providers to embed watermarks in AI-generated images, video, or other content earlier this year.
• 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 faced criticism for not adequately labeling ads featuring 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 stated it labels AI videos.

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