Should you tell customers content was made with AI?

The Short Answer: Transparency Matters

Disclosing AI-generated content is increasingly important for brand trust and legal compliance. While there's no universal "always disclose" rule, the trend is moving toward transparency. The FTC updated its guidelines in 2023 to require clear disclosure of AI involvement in content that could affect consumer decisions.

When You Must Disclose

Regulated Industries:

• Healthcare and medical claims (FDA, FTC oversight)
• Financial advice and investment recommendations (SEC, FINRA rules)
• Legal services and counsel
• Insurance products and quotes
• Testimonials and endorsements (FTC Endorsement Guides)

High-Stakes Content:

• Product reviews and ratings
• Customer testimonials (if AI-generated or AI-influenced)
• Comparative claims against competitors
• Health, safety, or efficacy statements
• Content affecting purchasing decisions

Geographic Requirements:

• EU: AI Act requires disclosure for certain AI systems
• California: Emerging regulations on AI-generated content
• Canada: AIDA (Artificial Intelligence and Data Act) coming 2025

When Disclosure Is Less Critical

Lower-Risk Content:

• Internal communications and memos
• Routine social media posts (general news, tips)
• Brainstorming and ideation content
• Formatting and editing assistance
• SEO optimization and keyword research
• Scheduling and administrative content

Note: Even here, transparency can build goodwill. Many brands disclose AI use across all content to avoid accusations of deception.

How to Disclose Effectively

Clear Language:

• Use "AI-assisted" or "AI-generated" (not vague terms like "created with technology")
• Place disclosure prominently (not in fine print)
• Be specific about what AI did (wrote copy, generated images, analyzed data)

Examples:

• "This product description was written with AI assistance and reviewed by our team"
• "Images on this page were generated using AI technology"
• "This analysis was created using AI tools and verified by our experts"

Placement:

• At the top of the content (not buried)
• In image captions for AI-generated visuals
• In video descriptions for AI-narrated content
• In bylines or author bios

The Trust Factor

Research shows that 73% of consumers want to know if content is AI-generated (Pew Research, 2023). Transparency actually builds trust when paired with quality assurance:

• Disclose + human review = higher trust
• Disclose + poor quality = lower trust
• No disclosure + discovery = severe trust damage

Brands like OpenAI, Google, and Adobe disclose AI involvement to set industry standards and avoid backlash.

Risk of Non-Disclosure

Legal Risks:

• FTC fines up to $43,792 per violation (2024 rates)
• Class action lawsuits (especially in California)
• Regulatory investigations
• Potential criminal liability in healthcare/finance

Reputational Risks:

• Social media backlash when AI use is discovered
• Loss of customer trust
• Negative press coverage
• Brand damage (see: Condé Nast, Sports Illustrated AI image scandals)

Best Practices for CMOs

1. Audit your content: Identify all AI-generated or AI-assisted content
2. Check regulations: Consult legal on industry-specific disclosure requirements
3. Create a disclosure policy: Standardize language across all channels
4. Prioritize quality: Ensure human review before publishing
5. Document your process: Keep records of AI tool usage and human oversight
6. Train your team: Make disclosure part of content workflows
7. Monitor compliance: Regular audits to catch non-compliant content

Industry-Specific Guidance

B2B SaaS: Disclose for case studies, testimonials, and product comparisons. General educational content can be less strict.

E-commerce: Disclose for product descriptions, reviews, and comparison content. Disclose AI-generated product images.

Healthcare/Wellness: Mandatory disclosure for any health claims, medical advice, or treatment information.

Finance/Insurance: Mandatory disclosure for recommendations, quotes, and financial analysis.

Media/Publishing: Disclose for news articles, opinion pieces, and generated imagery. Transparency is expected.

The Future: Stricter Requirements

Expect disclosure requirements to tighten:

• EU AI Act enforcement begins 2025-2026
• US federal AI regulation likely coming
• State-level laws expanding (California, Colorado, others)
• Platform policies (Google, Meta, LinkedIn) increasingly requiring disclosure

Bottom Line

Disclose AI-generated content in regulated industries, high-stakes claims, and when it affects consumer decisions. Even for lower-risk content, transparency builds trust and protects your brand from backlash. Create a clear disclosure policy, ensure human review, and document your process. The trend is moving toward mandatory disclosure—getting ahead now protects your brand and builds customer trust.