Answers

Should a small business use AI to make its ads, videos or phone greeting?

Yes for drafts and variations a person checks, with care for anything a customer could take as real. Google Ads and Meta both build AI image tools into their ad products, and AI-made ads can carry an AI label. Never use AI to invent customers, results or before-and-after pictures; the FTC's position is that AI has no exemption from existing laws. This is a plain summary, not legal advice.

What Google Ads says about generated images

Google's help page says its tools let advertisers create image assets from their own prompts, or review images Google suggests, and that the advertiser decides which ones to add to a campaign. It says advertisers should review any generated or suggested assets to make sure they are accurate, not misleading and not in breach of Google's ad policies or applicable laws before publishing.

The page also says AI regulations in the European Union, India and New York require ads with certain AI-generated or edited assets to carry disclosures or labels, and that Google offers an AI label setting. It adds that using the setting does not by itself ensure compliance with a specific regulation, and that advertisers should seek legal guidance. Generated images also carry identifying marks, including a watermark called SynthID.

What Meta says about AI in ads

Meta's help page says it labels ad images created or significantly edited with its generative AI creative features, or created or edited with third-party AI tools, using an "AI info" label. The label appears on the "About this ad" screen and sometimes next to the Sponsored label. Minor changes such as resizing or color correction do not trigger it, and the page says advertisers of ads about social issues, elections or politics must already disclose AI use. As general advice, expect a label on an AI-made image and do not try to hide it.

The line that applies however an ad is made

In its September 25, 2024 announcement of Operation AI Comply, then-FTC Chair Lina M. Khan said "there is no AI exemption from the laws on the books". The announcement described cases that included a company promoting an AI tool that enabled its customers to create fake reviews. On its reviews-rule questions and answers page, the FTC says the rule has no blanket prohibition on AI-generated avatars in marketing, but that such avatars may still count as testimonials and could violate the FTC Act if deceptive; it adds that its staff guidance is not definitive and gives no safe harbor.

As general advice, an AI presenter can read your script, but it cannot play a customer; the related answer on AI-generated images covers what an honest picture of your work looks like. This is the agency's position, not settled law, and this is a plain summary, not legal advice.

Where AI saves time

AI is often useful for first drafts, headline variations and alternate sizes, as long as a person reads each one before it runs. Keep real photos of your real work as the main picture where you can. The related answers on AI-generated images and on safe uses of AI in marketing cover the website and the checking habits, and the related answer on telling customers you use AI covers saying so when customers deal with an AI voice or assistant; for an AI phone greeting or receptionist, see the related answer on answering services and AI receptionists. As general advice, use a real person's voice only with that person's consent.

Sources

  1. Google Ads Help, "About generated images in Google Ads"
  2. Meta, "How AI-generated images in ads are identified and labeled on Meta"
  3. Federal Trade Commission, "FTC Announces Crackdown on Deceptive AI Claims and Schemes" (September 25, 2024)
  4. Federal Trade Commission, "The Consumer Reviews and Testimonials Rule: Questions and Answers"

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