Overview
The Advertising Standards Council of India (ASCI) has released draft guidelines requiring brands to disclose the use of Artificial Intelligence in advertising. The framework is risk-based: it does not ban AI, but it mandates transparency wherever AI-generated content could materially influence consumer decisions. These guidelines align with the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules 2026 and operate alongside the existing ASCI Code, which continues to apply in full. The draft is open for public consultation until 13 June 2026.
The Core Compliance Question
ASCI asks two questions to determine whether your AI use requires a label:
Does the AI use mislead consumers about a product’s claims, performance, or benefits, particularly where it is central to the ad’s persuasive message or materially influences purchase decisions?
Would the absence of a disclosure create a false or misleading impression of the product’s claims or benefits?
If the answer to either question is yes, a disclosure label is mandatory.
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