IAB sets guidance for AI transparency in ads

The Interactive Advertising Bureau has introduced its first AI Transparency and Disclosure Framework, setting out industry guidance on when and how artificial intelligence use should be disclosed in advertising. The initiative is designed to help brands, agencies, publishers and platforms address responsible AI use while balancing transparency with operational efficiency.

The framework arrives as generative AI adoption accelerates across marketing and advertising. IAB positions the guidance as a way to strengthen consumer trust, reduce regulatory risk and provide a shared approach to disclosure at a time of growing scrutiny around AI-driven content.

Why IAB is prioritising AI disclosure

David Cohen, CEO, IAB: "The digital industry is embracing AI in all of its splendor at breathtaking speed. We are certainly at a critical inflection point with generative AI. While AI is transforming how we work from ideation to execution and measurement, we must get transparency and disclosure right, or we risk losing the trust that underpins the entire value exchange. We're giving the ecosystem tools it needs to drive responsible innovation."

According to IAB, the framework is intended to support industry leadership on responsible AI adoption, particularly as regulators and platforms introduce more explicit rules around disclosure and consumer protection.

Rather than requiring universal labelling of all AI use, the AI Transparency and Disclosure Framework introduces a risk-based approach. Disclosure is recommended only when AI materially affects authenticity, identity or representation in ways that could mislead consumers.

The guidance calls for consumer-facing disclosures in advertising that involve synthetic humans, digital twins, AI-generated imagery, video or audio, and AI chatbots. Examples include prompt-generated images or videos depicting real-world events, AI-generated voices of deceased or living individuals making statements that never occurred, digital twins shown in fictional scenarios, and synthetic avatars or conversational agents designed to simulate human interaction.

How disclosures are structured

To support this approach, the framework sets out a two-layer disclosure model. The first layer focuses on consumer-facing disclosures, using standardised text labels or visual cues such as badges, icons, watermarks, interactive information elements or adjacent placement next to creative assets.

The second layer relies on machine-readable metadata, including C2PA protocols, to support technical compliance. Advertisers retain responsibility for determining when consumer-facing disclosure is required, based on potential consumer impact.

Caroline Giegerich, VP, AI, IAB: "AI is reshaping how advertising is created and scaled, but trust is what will determine its longevity. Our research reflects a clear misperception between how advertisers think consumers feel about AI-generated advertising and how consumers actually experience it. That disconnect is exactly why materially-based disclosure matters. This Framework gives the industry a clear answer to 'does AI involvement risk misleading consumers?' by focusing on consumer impact. It's about building credibility through transparency, not creating disclosure fatigue through universal labeling."

Research highlights trust gap

Alongside the framework, IAB released proprietary research with Sonata Insights examining attitudes towards AI-generated advertising. The study identifies a widening gap between advertiser expectations and consumer sentiment.

According to the research, 82 percent of advertising executives believe Gen Z and Millennial consumers feel positively about AI-generated ads, while only 45 percent of those consumers report positive sentiment. The gap has increased from 32 points in 2024 to 37 points in 2026.

The findings show that Gen Z consumers are nearly twice as likely as Millennials to feel negatively towards AI-generated advertising. Many Gen Z respondents associate AI-using brands with inauthenticity, disconnection or unethical behaviour.

Consumers are also more likely than advertisers to describe AI-driven advertising as manipulative or unethical, while advertising executives more commonly associate AI use with innovation and differentiation. More than half of respondents say brands should disclose when advertising is fully AI-generated or uses AI-created imagery or video.

Jack Koch, SVP, Research & Insights, IAB: "There is a growing gap between advertisers' use of AI and consumer skepticism. This research shows that disclosure can play a decisive role in strengthening consumer relationships and determining whether AI use in advertising becomes a long-term value driver or a short-term liability. It also emphasizes that transparency and creative quality are essential to earning trust, shifting perceptions, and driving performance."

Regulatory context and industry adoption

IAB frames the framework as particularly relevant as regulatory activity increases globally, including the EU AI Act, US state-level legislation and platform-specific disclosure requirements. Adoption is positioned as a way for organisations to demonstrate regulatory readiness while reinforcing trust and credibility with consumers.

The full framework can be accessed here

www.iab.com

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