The Interactive Advertising Bureau (IAB) has launched its first-ever AI Transparency and Disclosure Framework, providing the digital advertising industry with a practical, risk-based approach to disclosing AI use. Designed to balance transparency with operational efficiency, the framework helps brands, agencies, publishers, and platforms adopt generative AI responsibly while maintaining consumer trust and minimizing regulatory risk.
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The framework targets specific high-risk AI applications that could mislead consumers, such as text-to-image/video generation depicting real-world events with limited human input, AI-generated voices of deceased or living persons making new statements, digital twins in fictional scenarios, and synthetic avatars or chatbots simulating human interaction. It avoids universal labeling to prevent disclosure fatigue, instead emphasizing proportionality and clarity.
"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," said David Cohen, CEO, IAB. "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."
Supporting research from IAB and Sonata Insights, "The AI Ad Gap Widens: Consumer Skepticism Persists as AI Advertising Expands—But Disclosure Can Close the Gap," highlights growing misalignment. Gen Z shows stronger negativity toward AI ads (39% negative vs. 20% for Millennials), often viewing AI-using brands as inauthentic or unethical. Consumers are more likely than advertisers to describe AI use as manipulative or unethical, while executives associate it with innovation and uniqueness.
"AI is reshaping how advertising is created and scaled, but trust is what will determine its longevity," said Caroline Giegerich, VP, AI, IAB. "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."
"There is a growing gap between advertisers' use of AI and consumer skepticism," said Jack Koch, SVP, Research & Insights, IAB. "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."
With global regulatory developments such as the EU AI Act and emerging U.S. state laws, the framework positions early adopters as leaders in responsible AI while preparing for compliance. IAB encourages advertisers, agencies, publishers, and tech partners to commit to its principles of transparency, proportionality, consistency, and clarity.
To access the full AI Transparency and Disclosure Framework and the accompanying research study, visit the IAB website.
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.
About Sonata Insights
Sonata Insights is an independent research and advisory firm focused on how artificial intelligence is reshaping consumer behavior, marketing and media. Founded by veteran digital media analyst Debra Aho Williamson, Sonata Insights helps brands, agencies, media companies and investors understand how AI platforms are influencing advertising opportunities. Through original research and strategic analysis, Sonata Insights provides clear, actionable guidance to leaders navigating the fast-changing AI-driven media landscape.
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