The FCC’s New Rule Requires Disclosures for AI in Political Ads

The FCC’s proposed rule requiring AI disclosures in political ads could have wide-ranging implications for the election season and advertising industry, as concerns grow over AI-generated deepfakes and their potential to mislead voters and undermine institutional credibility.

Key Takeaways:

• Moody’s warns that AI deepfakes could be used to mislead voters, impact election outcomes, and ultimately influence policymaking, undermining the credibility of U.S. institutions.
• The FCC’s proposed rule would require political TV, video, and radio ads to disclose AI-generated content, but does not cover social media, which the FEC is considering addressing with its own regulations.

Industry Impact and Reactions:

• The ruling could have significant consequences for traditional media advertising in political campaigns and potentially extend to other types of ads.
• Major brands are wary of being associated with the spread of misinformation during a divisive election cycle, as Google and Facebook are expected to capture nearly half of U.S. digital ad spending in 2024.
• While some social media platforms have self-adopted AI disclosure policies, industry standards are lacking, and the rapidly evolving technology makes policing content challenging.

Deepfakes as an Emerging Threat:

• The increasing accessibility and sophistication of AI tools have made creating convincing deepfakes easier than ever, posing risks of propaganda, social unrest, and even terrorism.
• States and local governments are enacting measures to block deepfakes and unlabeled AI content, but progress has been slowed by free speech concerns and fears of stifling technological advances.

Silver Linings and Voter Vigilance:

• The decentralized nature of the U.S. election system and existing cybersecurity policies provide some protection against AI-manipulated content.
• While law enforcement and FCC responses may deter domestic actors, foreign entities will likely continue exploiting AI to meddle in American politics, emphasizing the need for voter alertness and calm.

Broader Implications:

The perception that deepfakes can influence political outcomes, even without concrete examples, could undermine public confidence in the electoral process and government institutions. As the populace grows more concerned about distinguishing fact from fiction, there is a risk of increased disengagement and distrust in the government, potentially leading to greater political and social risks and compromising the effectiveness of government institutions.