AI Influencers Without Disclosure Risk Brand Trust, Regulators

The Guardian report lands days after the Senate Judiciary Committee voted to advance the NO FAKES Act, legislation designed to curb unauthorized AI-generated replicas of individuals. The bill would create a federal intellectual property right covering a person's voice and visual likeness. "This bill is about protecting what's most personal to us, what makes us us: our voice and our likeness," said Sen. Chris Coons, D-Del., one of the bill's sponsors. Coons argued that advances in AI have made it possible to develop convincing digital replicas that depict people saying or doing things they never said or did.

The same technology enables financial fraud. PYMNTS reported earlier this month that synthetic identity fraud has reached a new level with AI. "A synthetic borrower in 2026 may arrive with a convincing driver's license generated by image models, employment verification supported by AI-written HR correspondence, and a live onboarding video featuring a deepfake face synchronized with cloned speech patterns," that report said. "Some fraud operations are reportedly generating entire digital footprints."

For brands, the risk is straightforward: using AI influencers without disclosure erodes the trust that makes social-media endorsements work. The Which? survey found 70% of consumers could not distinguish real from fake videos. If regulators or consumer groups start testing brand compliance, the first company caught running undisclosed AI influencers faces a reputational hit that no algorithm can fix.

Coons said the committee expects to mark up the NO FAKES bill in the coming weeks. No date has been set for a floor vote.