IAB Updates Industry Framework for Consistent AI Transparency & Disclosure in Advertising
IAB's AI Transparency and Disclosure Framework provides practical guidance for advertisers on when and how to label AI
NEW YORK, Aug. 18, 2026 /PRNewswire/ -- 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."
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.
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."
Quotes from Members of Working Group |
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Graham Wilkinson, EVP, Chief Innovation Officer, and Global Head of AI, Acxiom |
"Regulators in New York, California, South Korea and the EU are no longer asking whether AI disclosure matters, they're setting enforceable rules for it. An industry framework that keeps pace with that shift, rather than reacting to it state by state, is what lets us keep innovating without leaving consumers or regulators guessing." |
Michael Lampert, Senior Director, Global Gen AI Adoption and Consumer Data Strategy, Mondelēz International |
"There is data that shows consumers are open to trusting AI in advertising, but only when brands are upfront about it. "As adoption accelerates across the industry, that gap between AI use and consumer trust is the one that this framework is built to help close." |
Simon Poulton, EVP, Innovation & Growth, Tinuiti |
"Agencies sit at the center of this conversation, translating this framework into what actually runs in-market for our clients. Having clear, consistent guidance on disclosure means less guesswork and less risk for the brands we represent, and that benefits the entire industry." |
Brian Hull, Head of Global Creative Labs, The Weather Company |
"Trust and transparency are foundational to our work at The Weather Company, including how we build ad experiences. Integrating the IAB's AI Transparency & Disclosure Framework into our creative workflow allows us to provide brand partners with clear, standardized guardrails and enterprise-grade safety at scale. We're proud to collaborate with the IAB to continue championing responsible AI governance across the industry." |
To review the AI Transparency and Disclosure Framework V2, click here.
The AI Transparency and Disclosure Framework V2 builds on IAB's AI Transparency and Disclosure Framework V1, available at https://www.iab.com/guidelines/ai-transparency-and-disclosure-framework/.
About IAB
The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and collaboration of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.
SOURCE Interactive Advertising Bureau (IAB)
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