IAB Announces Revised AI Advertising Guidance

The Interactive Advertising Bureau (IAB) has announced Version 2 of its AI Transparency and Disclosure Framework – building on the initial framework published in January 2026, which offered practical guidance on disclosing AI involvement in consumer-facing advertisements. 

This framework was released alongside research conducted by Sonata Insights, which found mixed views on the use of AI in creative contexts, with some consumers seeing it as a positive, and others finding it inauthentic. 

More than half of respondents said they wanted brands to share when an ad was fully AI-generated or used AI imagery, while 73% of Gen Z and Millennials said clear disclosure would increase or have no impact on their likelihood to buy a product.  

There is a disconnect between marketers and consumers – with an IAB study finding that, while 82% of advertisers believe that consumers feel positive about AI-generated ads, only 45% actually do. 

“Trust is everything between a brand and its customers, and being honest about AI is part of earning it,” says Caroline Giegerich, Vice President of AI at IAB. “That said, not every use of AI needs a label – labelling everything teaches consumers to ignore labels and could negatively impact advertisers. 

“This is why we take a meticulously nuanced position in this framework.”

Changing regulations

As generative AI becomes more advanced, regulations around its use have increased. The European Union, for instance, saw Article 50 of the AI Act go into effect early August 2026, which requires clear disclosure to ensure consumers know they are viewing or interacting with AI. 

Other regulations – such as New York’s synthetic performer law, California’s AI Transparency Law and South Korea’s revised Basic AI Act – have also come into effect over the course of 2026. 

It can be challenging for global organisations to navigate AI disclosure when there are many differences between these regulations. In fact, many advertisers are unsure how to best approach AI in advertising, with the Advertising Perceptions study finding that 72% believe that there should be industry standards for disclosure of AI use in creative asset development. 

In its most recent framework, the IAB stresses that the framework is designed to represent the advertising industry perspective rather than replace legal regulations. 

Targeted disclosure

Instead of using universal labelling, the IAB is calling for targeted disclosure in its latest framework – particularly when AI use can “materially” affect authenticity, identity or representation in ways that could mislead consumers. 

The framework recommends either a universal visual indicator – the sparkle icon – or text labels to drive ecosystem-wide consistency for consumers, in order to sustain trust without damaging brand growth. 

It also advises on types of AI use where AI disclosure is not needed. 

These include:

• Routine post-production 
• Internal workflows
• “Clearly fantastical” imagery
• Synthetic voices of real individuals where use has been authorised
• Generic synthetic voices
• Background music

“Under-disclosure leaves consumers at risk of being misled,” says Caroline. “Over-disclosure could risk negatively impacting advertisers.”

Who are the IAB’s partners?

Google
Operating as a premier technology collaborator, Google works closely with the Interactive Advertising Bureau (IAB) to establish global standards for privacy, programmatic bidding and digital measurement. Led by CEO Sundar Pichai, the company plays an influential role on the board of directors and technical committees. Headquartered in Mountain View, California, Google collaborates with the organisation including adherence to technical frameworks such as IAB Europe's Transparency and Consent Framework, driving transparency, accountability and user trust across the digital advertising ecosystem.

Microsoft 

Software giant Microsoft maintains a substantial partnership with the IAB to advance programmatic identity, AI integration and consumer data protection. Led by CEO Satya Nadella, the company is headquartered in Redmond, Washington. Through executive representation on IAB governing boards, Microsoft Advertising actively contributes to standard-setting initiatives for clean rooms, addressability solutions and automated ad delivery. This ongoing alignment ensures brand safety and scalable compliance mechanisms across search, gaming and digital streaming media. 

Amazon
Retail and cloud giant Amazon collaborates with the IAB to advance ad-tech capabilities, e-commerce integration and signal standardisation. Based in Seattle, Washington, the company operates under CEO Andy Jassy. Amazon Ads holds prominent leadership roles across IAB committees, helping to guide technical specifications, connected television frameworks and clean room standards. This partnership allows brands to use retail media data responsibly while establishing consistent guidelines for cross-channel attribution, automated buying and measurement metrics across the wider industry.

WPP
Representing the global agency and consulting sector, WPP maintains a crucial partnership with the bureau to align media buying with industry-wide standards. Headquartered in London, United Kingdom, the multinational advertising network is led by CEO Cindy Rose. WPP executives participate in key board seats, steering initiatives focused on responsible data usage, brand safety and supply chain transparency. The firm’s engagement helps ensure that client investments remain effective, ethical and fully compliant with changing privacy regulations worldwide.