ASCI's AI Ad Labelling Rules in 2026: What Indian Brands Must Disclose and When

What Are ASCI's AI Labelling Guidelines in 2026?

The Advertising Standards Council of India's Guidelines for Responsible Labelling of Synthetically Generated Content in Advertising set out when Indian advertisers must disclose AI-generated content and which uses are not allowed at all. The guideline was signed by the Chairman of ASCI's Board of Governors on 17 September 2026, and ASCI's press release dated 29 September 2026 says ASCI "today released" it after "stakeholder consultations on the draft guidelines released in May."

The guideline sorts AI use into four buckets: prohibited content, mandatory labelling, no labelling required, and how to label. It states that "All advertisements containing SGC AI must comply with the entirety of the ASCI Code", and that its "focus is on managing consumer outcomes rather than regulating the technology." In practice that means the question is never "did we use AI?" but "would a consumer be misled about the product without being told?"

What Counts as Synthetically Generated Content Under ASCI in 2026?

ASCI defines synthetically generated content, or SGC, as "any audio, visual, or audio-visual content in an advertisement that is artificially or algorithmically originated, created, generated, modified, or materially altered using a computer resource, to appear real, authentic or true and depicts or portrays any individual or event in a manner that is likely to be understood, perceived or believed to be true or as indistinguishable from a natural person or a real-world event."

Two features of that definition matter. It covers audio, visual and audio-visual content, so text alone sits outside it, which is consistent with clause 3D exempting AI-written copy. And it is about content made "to appear real", which is why obvious fantasy is exempt under clause 3C. ASCI adds that SGC "is only considered misleading or harmful when it creates unfulfillable expectations, exploits vulnerable populations, depicts unsafe situations, or replicates a natural person's likeness without consent, or provides false or misleading information by way of depiction."

How Do You Decide Whether an Ad Needs an AI Label in 2026?

ASCI gives three assessment questions. The requirement "is based on the nature of communication and the risk of consumers being misled or harmed", and brands should ask whether SGC "is central to an ad's persuasive messaging or materially influences purchase decisions", whether its use "misleads consumers about the product's claims, performance, or benefits, if it is not labelled", and whether "the absence of a disclosure" would "create a false or misleading impression of claims, benefits or performance of the product or service."

Each bucket has its own detailed guide. Our guide to AI label exemptions includes a fourteen-row decision table for common production situations. The virtual influencer and AI likeness guide covers personas, voice cloning and consent. The sponsored AI recommendations guide covers paid answers inside chatbots.

What Is Prohibited Even With an AI Label in 2026?

Clause 1 lists content that is illegal, infringes rights, makes misleading claims or violates the ASCI Code, and states plainly: "These will violate the ASCI code even if an AI label is used." This is the most important sentence in the guideline for anyone who hoped a disclosure would make risky creative acceptable.

• Fabricated endorsements: "using AI to create, alter or attribute an endorsement or testimonial in a manner that falsely represents that a real person has used, experienced, approved, recommended or endorsed a product or service when they have not."
• Exaggerated results: ASCI's example is "a weightloss product showing a before-after image of weight reduction from 100 kgs to 70 kgs through an AI generated image of a lean, toned body, when the visual does not represent actual or substantiated product results." Routine clause 3A edits are carved out.
• Non-existent places as real: "a travel agency depicting a hotel in a non-existent location or having non-existent facilities."
• Rights and consent: "Using unauthorised copyrighted work, deepfakes or a person's likeness without consent."

Which AI Uses Need a Mandatory Label in 2026?

Clause 2 says labelling "is mandatory in advertisements which contain SGC in a manner that materially influences consumer decisions, and the lack of a disclosure label would mislead consumers." ASCI lists six examples and states "Labelling is mandatory in all such cases to help consumers understand the nature of the representation."

Which AI Uses Need No Label in 2026?

Clause 3 says "No labelling is required when advertisements feature minor modifications or use of SGC in ways that have no material impact on a consumer's ability to make an informed choice." The five groups are minor enhancements, background and ambient elements, fantastical elements, administrative and text uses, and accessibility. This is deliberate: ASCI says the guidelines aim to ensure "transparency while avoiding consumer label fatigue."

For most creative teams this is the reassuring part. Colour correction, blemish removal, AI-written copy, decorative backgrounds, jingles and subtitles all sit here. The boundary is substance: clause 3A edits qualify only where they "do not alter the substance or core claims of the ad", and clause 3B elements only where they are "unrelated to the product's actual capabilities or promise."

How Should Brands Label AI Content in 2026?

Clause 4 gives brands room. They "may use appropriate labels, either those provided by ad platforms or their own labels such as but not limited to 'Audio/Video created using AI' or 'Audio/Video enhanced using AI.'" They "may use alternative labels that accurately inform the consumer." The one fixed form is for sponsored AI recommendations: "Where AI recommends a product that is sponsored, the disclosure should clearly state 'Sponsored by [Brand].'"

The guideline also says "Disclaimers should follow the ASCI Code on disclaimer guidelines where applicable", and repeats the limit that defines the whole document: "The use of SGC in some cases may be considered misleading or objectionable regardless of labels, if the end effect is likely to mislead or harm the consumer."

When Do the ASCI AI Labelling Guidelines Take Effect in 2026?

The guideline text says: "These Guidelines shall come into effect on the expiration of 3 months from the date of their publication." The document is signed by the Chairman of ASCI's Board of Governors and dated 17 September 2026. ASCI's press release, datelined Mumbai, 29 September 2026, says ASCI "today released" the guidelines and that they "will come into effect three months from the date of publication."

ASCI does not itself state the calendar date on which the guidelines take effect. Two dates appear in its documents, and they do different jobs. The 17 September 2026 date is when the guideline was signed. The 29 September 2026 date is when ASCI says it released it. If 29 September is treated as the date of publication, three months runs to 29 December 2026. Plan to that date at the latest, and confirm the effective date with ASCI before relying on it in a contract or compliance calendar.

How Should Indian Brands and Agencies Prepare in 2026?

1. Inventory live and planned creative that uses AI for audio, visuals or video, including personalised and programmatic variants.
2. Sort each item into ASCI's four buckets using the three assessment questions. Most will be clause 3 exempt.
3. Remove anything prohibited now, rather than labelling it: fabricated testimonials, exaggerated before-and-after imagery, non-existent locations shown as real, unconsented likeness.
4. Choose a house label for mandatory cases and apply it consistently across platforms.
5. Write the sponsored-recommendation wording into AI ad contracts, since that label is fixed.
6. Add the labelling decision to creative briefs, so it is made before production, not at review.
7. Brief creators and agencies, especially on the consent-versus-disclosure distinction for replicated voices.

What Does the Guideline Not Settle in 2026?

• The exact effective calendar date. ASCI gives the release date and the three-month rule, not the resulting day.
• Label placement, size and duration, beyond following the ASCI Code's disclaimer guidelines.
• Who applies a label when a platform and a brand are both involved.
• Separate penalties. All SGC advertising "will continue to be assessed against the ASCI Code in its entirety", per the press release.

What Are the Common Mistakes in 2026?

• Believing a label fixes misleading content. Clause 1 content violates the Code "even if an AI label is used".
• Labelling every AI touch. ASCI wants to avoid label fatigue; most production use is exempt.
• Treating consent as disclosure. Replicated likeness needs a label even with consent.
• Using soft wording for sponsored AI answers. The label is fixed: "Sponsored by [Brand]".
• Counting three months from the signing date. The clock runs from publication, and ASCI released the guideline on 29 September 2026.
• Assuming text is covered. The SGC definition covers audio, visual and audio-visual content; AI copy is exempt but must still be truthful.

Key Takeaways for 2026

• ASCI's SGC labelling guideline was signed on 17 September 2026 and released on 29 September 2026, after consultation on a May draft.
• It takes effect three months from publication: 29 December 2026 if the release date is the publication date. ASCI does not state the calendar date, so confirm it.
• Four buckets: prohibited even with a label, mandatory label, no label, and how to label.
• Prohibited: fabricated testimonials, exaggerated results, non-existent places as real, deepfakes and unconsented likeness.
• Mandatory label: synthetic influencers, consented likeness replicas, fabricated events, unbuilt products, core-feature sound, paid AI suggestions.
• No label: routine edits, decorative elements, obvious fantasy, AI copy, accessibility.
• Sponsored AI recommendations must say "Sponsored by [Brand]"; other labels can be any accurate wording.
• The whole ASCI Code still applies to every ad that uses AI.

Distk helps Indian brands and agencies build AI-assisted advertising with the disclosure decision made at the brief stage, across creative, influencer and paid AI placements. If you are planning campaigns that will run after the guideline takes effect, that review is where we start.

Sources

• ASCI, Guidelines for Responsible Labelling of Synthetically Generated Content in Advertising, signed 17 September 2026. All quoted rules, definitions and examples come from this document.
• ASCI press release, Mumbai, 29 September 2026, for the release date and the effective-date wording.
• The Advertising Standards Council of India, ascionline.in.