Hello...Hello! 👋🏻

Last week, a CMO asked me: "Can my team use this AI-generated ad without getting sued?"

Fair question.

With the FTC issuing AI guidance updates and the EU's AI Act in full swing, the compliance landscape continues to evolve. 

The harsh reality?

Most marketers are flying blind when it comes to AI compliance.

Here are four easy tips to stay compliant…

🔍 The 4 Pillars of AI Marketing Compliance

🔍 1. Transparency

What You Should Do:

  • Disclose AI usage when content is substantially AI-generated

  • Label synthetic media (AI influencers, AI voices, generated images)

  • Update privacy policies to cover your AI data processing

Common Mistakes:

  • Using AI-generated testimonials without disclosure

  • Creating "fake" customer reviews with AI

  • Hiding AI usage (you significantly updated product photos with AI)

Easy Win: Add a disclosure template to AI-generated content: "This content was created with AI assistance and reviewed by our expert team."

🌐 2. Local Regulations

Key Regulations to Track

Region

Law

Marketing Impact

US

Truth-in-advertising applies to AI content

EU

High-risk AI systems need conformity assessments

California

Bot disclosure requirements

Action Step: Review recent actions by the FTC.

©️ 3. Copyright Safety

Safe Practices:

  • Use licensed training data or paid accounts with indemnity language

  • Create original work rather than copying

  • Document your creative process for legal protection

Higher-Risk Activities:

  • Asking AI to "create content in the style of [specific artist/brand]"

  • Using AI to recreate copyrighted characters or logos

  • Training on scraped competitor content

📄 4. Update Your Terms & Privacy

Your T&C Must Address:

Data Usage:

  • How customer data trains AI models

  • Third-party AI service data sharing

  • User rights regarding AI processing

Content Rights:

  • Who owns AI-generated content

  • User-generated content and AI training

  • Liability for AI-generated outputs

Quick Template Addition

"Our services may use artificial intelligence to enhance user experience. By using our service, you consent to AI processing of your interactions as described in our Privacy Policy."

 🚨 Red Flags: When to Call Your Lawyer

Stop and get a legal review if you're:

  • Updating your privacy policy for AI

  • Using AI for regulated consumer decisions (credit scores, higher ed admissions) or any high-stakes personalization 

  • Training AI on sensitive customer data (ie. you are in a right of removal state)

  • Operating in highly regulated industries (finance, healthcare, banking)

⚡ Quick Compliance Wins

This Week:

  1. Add AI disclosure to your next campaign

  2. Update your ‘About’ page to mention how and why you’re using AI

  3. Create an AI QA checklist for your team to sort the good from the bad

    » I’ve created this one so you don’t have to (it’s free).

The Bottom Line

Compliance isn't just about avoiding lawsuits; it's about building trust with customers who increasingly value transparency.

🫡 Stay compliant,

Alec

P.S. Laws evolve quickly. Always consult legal counsel for your specific situation. I'm a marketer, not a lawyer.