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Ad Standards Flags AI's 'Potential to Mislead' as Sector Considers New Generative AI Rules

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Date Published
13 Feb 2026
Priority Score
3
Australian
Yes
Created
13 Feb 2026, 01:00 am

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Description

Australians are increasingly concerned that AI-generated content could mislead viewers, Ad Standards says, as the advertising sector considers introducing new rules around AI usage.

Summary

The rise of AI-generated content in advertising poses potential risks of misleading consumers, leading Australia's Ad Standards to consider new rules governing AI use. This consideration stems from concerns that generative AI can create deceptive content, as reflected in consumer complaints. The Australian Association of National Advertisers is reviewing its code of ethics, which may include specific guidance on AI usage. While South Australia has already banned deepfakes in political ads, this article's relevance rests on its exploration of evolving policy frameworks and their implications for AI governance and safety, particularly within Australia.

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Australians are increasingly concerned that AI-generated content could mislead viewers, Ad Standards says, as the advertising sector considers introducing new rules around AI usage. Generative AI has broken into the mainstream, replacing ‘traditional’ computer generated graphics in commercials broadcast in the US during Monday’s Super Bowl. Rapid technological advancements means some Australian brands are also comfortable airing their own commercials built with AI-generated footage. While local viewers are familiar with fantastical imagery in commercials, the rise of ‘deepfake’ scams emulating real people shows how generative AI can deceive viewers. Some jurisdictions are already taking action: South Australia last year banned ‘deepfakes’ in political ads that depict acts the real person did not perform. Smarter business news. Straight to your inbox. For startup founders, small businesses and leaders. Build sharper instincts and better strategy by learning from Australia’s smartest business minds. Sign up for free. * indicates required Email Address * By continuing, you agree to our Terms & Conditions and Privacy Policy. Complaints are now trickling through to Australia’s advertising watchdog. Greg Wallace, executive director of advertising complaint watchdog Ad Standards, told SmartCompany the agency has received a “relatively small” number of complaints about AI in general advertising to date. Related Article Block Placeholder Article ID: 331083 Sam Altman slams Anthropic’s “dishonest” Super Bowl ads about ChatGPT David Adams The bulk of those complaints “tend to be general objections to the use of AI itself,” he said, instead of specific examples where the technology has been used to breach the existing advertising code of ethics. But the organisation is keeping a close eye on generative AI and its implications, said Wallace. “With AI becoming more common, its potential to mislead is a growing area of public concern.” While there is currently no blanket rule around the disclosure of AI in advertisements, Wallace said Ad Standards “encourages transparent, responsible advertising practices.” “Regardless of how the content is created, AI or otherwise, the advertising rules still apply,” he added. “If an ad raises an issue under any of the advertising codes, we will assess it in the same way as any other ad. “And if it breaches the rules, the advertiser must amend or remove it.” Generative AI is also under consideration by the Australian Association of National Advertisers (AANA), which is reviewing the code of ethics that complaints to Ad Standards are measured against. An AANA consultation paper, released October, asks if the code should be updated to include a “specific rule or guidance dealing with AI in advertising”. It also asks if a general rule around “misleading and deceptive” content, aligned with Australian Consumer Law, would capture some of the issues created by generative artificial intelligence. The code is reviewed every five years, with the next update expected later this year. Stay in the know Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.