By Spencer Rubin
AI is now a routine part of how content gets made. From scripts, captions, and images to voiceovers and research, AI tools are embedded across the creative process. But the legal and contractual frameworks around AI disclosure are still catching up, and the gap between what creators are doing and what they are required to disclose is narrowing fast.
Whether you are an influencer, a content creator, a brand, or an agency, here is what you need to know and what you should be doing when using AI in your content.
Why AI disclosure is a legal issue, not just an ethical one
The regulatory landscape around AI-generated content is fragmented but moving quickly. While disclosure of AI use is legally required by certain laws and regulations (such as the EU AI Act, FTC Guidelines, and various advertising standards), there are also best practices that, from an ethical standpoint, are important to consider. These include various social media platform rules, industry codes, and ethical expectations. These laws and best practices create separate but overlapping disclosure requirements.
Failing to comply with any of them can carry significant consequences, including:
Platform penalties: Removal of content, account suspension, or demonetization where platform policies require AI disclosure and rules are not followed.
Brand and client disputes: Breach of contract claims where an agreement required disclosure of AI use and the creator failed to do so.
Regulatory exposure: FTC enforcement and class-action consumer fraud risk.
Reputational risk: Damage to brand standing and potential defamation claims.
“Without clear language on AI usage and disclosure, you have no enforceable expectations and no protection if a dispute arises.”
Your contracts are your first line of defense
Before thinking about regulators or platforms, look at your contracts.
If you are a content creator or influencer, your brand partnerships almost certainly include a statement of work or AI policy. Many creators have not read them carefully, which presents a significant risk. These documents set out when AI can be used, for which deliverables, and what disclosure is required. If you use AI in an unpermitted manner or fail to disclose required usage, you may be in breach of contract regardless of underlying legislation.
If you are a brand or agency, your standard agreements may not yet address AI at all. Without clear language on AI usage and disclosure, you have no enforceable expectations and no protection if a dispute arises.
What good contracts should cover:
Whether AI tools can be used in the creation of deliverables, and if so, which categories.
Any disclosure obligations that flow from AI use, including consumer-facing disclosures on platform posts.
Intellectual property ownership of outputs generated with AI assistance.
Remedies and consequences if AI use is not disclosed as required.
If your templates do not address these points, they need updating.
What you should be doing right now
Immediately:
- Audit your active contracts: Review existing agreements for any AI use or disclosure language to understand your commitments before producing additional AI-assisted content.
- Check platform disclosure policies: Review terms of use and AI policies across all active distribution channels, as these vary significantly and update regularly.
- Update your standard templates: Work with legal counsel to insert AI clauses into standard agreements to set clear expectations upfront.
Within 30 to 90 days:
Develop an internal AI usage policy: Establish clear rules setting out when AI can be used, what must be disclosed, and to whom. Share this with employees, contractors, and partner influencers.
Train your team: Ensure all relevant stakeholders understand and regularly refer to the internal policy.
Ongoing:
Monitor regulatory developments: Track evolving disclosure requirements across key operating jurisdictions.
Review contracts annually: Update agreement terms annually to align with increasingly detailed disclosure obligations.
Treat proactive disclosure as a brand trust strategy: Transparent AI disclosure signals honesty, mitigates compliance risk, and protects long-term commercial relationships.
The bottom line
AI use is widespread, and disclosure requirements are growing. The gap between them creates real legal and commercial risk.
Key Takeaways:
The law is moving fast: The direction of regulatory frameworks is pointing toward more rigorous disclosure obligations.
Contracts are your primary protection: Clear, updated agreements protect both sides of a commercial relationship.
Non-disclosure liability is real: Enforcement risks from platforms, regulators, clients, and subcontractors are actively increasing.
Transparency is both ethical and strategic: Early disclosure builds trust with audiences and clients alike.
If you need help reviewing your contracts for AI disclosure obligations, developing an internal AI usage policy, or updating your standard templates, speak to Spencer.
