Should India regulate AI in advertising?

Artificial intelligence is no longer just a buzzword in advertising. Brands are already using it to write copy, generate images and decide who sees what online. The question now being asked in India is simple: should there be fresh rules to keep this in check, or are the current laws enough?

Elsewhere, regulators are not waiting. In the UK, watchdogs are testing AI-generated ads against truth and transparency standards. Singapore has issued governance frameworks. The European Union’s new AI Act is preparing for sweeping compliance checks. Belgium has gone furthest, spelling out 12 rules that force advertisers to declare AI content, guard against bias and handle consumer data with care.

India, by contrast, has yet to spell out anything specific. AI-led campaigns are multiplying, but the debate remains open on whether self-regulation can keep pace with the risks.

CCPA: No need for separate AI mandate

Speaking toBestMediaInfo.com, Nidhi Khare, Chief Commissioner, Central Consumer Protection Authority (CCPA), said existing laws already cover the risks.

“We already have guidelines for virtual influencers, and the principle remains the same: if an ad is misleading, the advertiser is liable, whether the message comes from a real person or an AI-generated model. What matters is who owns the ad and who gains from it. If the material is false or misleading, the advertiser will face action regardless of the tools used to create it. I don’t see the need for a separate mandate to declare whether an ad is created using AI. We will step in only when there is a violation. If someone spreads lies or misleads consumers, they will be taken to task, whether they use AI tools or any other means.”

ASCI: Outcomes matter, not tools

Manisha Kapoor, CEO and Secretary-General of the Advertising Standards Council of India (ASCI), shared a similar stance, noting that existing codes already demand honesty, decency and fairness in advertising.

“The use of AI in advertising has certainly seen a huge uptake. Regardless of the technology, Indian laws and advertising codes require ads to be honest, decent, safe and fair. Existing guidelines are sufficient to address AI-related issues such as deepfakes, while copyright laws protect creative work,” she said.

Kapoor added that ASCI is monitoring developments: “The issue is evolving, and we are keeping a watch on various use cases as well as regulatory moves globally to assess if any gaps emerge that need further regulatory input.”

Experts call for proactive safeguards

However, some industry experts warn that a wait-and-watch approach could leave consumers exposed. Shweta Purandare, former ASCI Secretary-General and advertising compliance expert, said:

“India must act swiftly to put proactive guardrails in place to protect consumers from AI-generated content, particularly advertisements that lack clear disclosures. Without proper gatekeeping, such content could be disseminated at scale, amplifying misinformation, bias and erosion of trust.”

Echoing the call for transparency, Shradha Agarwal, Co-founder and Global CEO of Grapes Worldwide, argued, “Belgium’s new rules are a positive step. India should also devise regulations to maintain consumer trust and protect audiences from misinformation. Disclaimers for AI-generated content help people distinguish between human- and tech-created content. A legal framework ensures a fair game and prevents unethical practices.”

Industry voices: Talent over tools

From the industry side, there is recognition that AI will increasingly shape creative production, but also a belief that human oversight remains critical. Rahul Vengalil, Founder of tgthr, said, “If this comes to India, then talent will be at the centre and not the tool. AI makes creatives efficient, but it cannot, by itself, overcome biases or build trust. Human creative talent is needed to control that. Over the long run, talent will take centre stage because mass-produced AI creatives will all look the same.”

Vengalil added that disclosures are vital to protect brand credibility: “Most AI creatives run on digital platforms, which already face a trust deficit. Adding AI without proper transparency could erode trust even further.”

Agarwal agreed, noting that “brands and agencies should proactively establish transparent workflows, mandate disclosure of AI use, and upskill their workforce to understand both the tools and their ethical boundaries.”

Only the beginning

For Sandeep Goyal, Managing Director at Rediffusion, the global advertising guidelines and rules for AI usage are an important marker but not the final word: “These guidelines reflect a point of view. They are bound to evolve as technology becomes sharper, its use cases expand, and its impact is better understood. AI is here to stay. Belgium is a good starting point, but much more will follow.”