Google will identify ads created by AI, provided that advertisers acknowledge it.

      Google is introducing a feature that identifies when an advertisement has been created using AI. According to TechCrunch, the label will show whether an ad was made or modified with generative tools.

      This information can be found in the "My Ad Center" panel, accessible through the three-dot menu or information icon on ads. It applies to advertisements across Google Search, YouTube, and Google Discover, and is available worldwide. The panel already enables users to block or report ads and provides reasons for why a particular ad was displayed. Now, it includes an option labeled "how this ad was made," which reveals any AI involvement.

      The reasoning behind this is clear. AI allows for the inexpensive creation of polished product images, which can deceive consumers who may think they are viewing a real photograph rather than a generated one.

      Up until now, Google required AI disclosure only for election-related ads. Expanding this requirement to commercial ads marks a significant broadening of the policy.

      The effectiveness of this feature significantly relies on how an ad was created. When advertisers utilize Google’s generative AI ad tools, the disclosure is enabled automatically. However, if an ad is produced elsewhere, the advertiser must proactively indicate that AI was involved. Google has stated that it will not conduct its own verification of these claims, meaning the honesty of advertisers is crucial for the label's accuracy.

      This gap is significant, as there is a strong incentive for advertisers to remain silent. An advertiser hoping that a synthetic image will be perceived as a genuine photograph has little motivation to admit otherwise, and Google is not monitoring them closely.

      The timing of this announcement is deliberate. Google’s action precedes stricter regulations, as the EU AI Act's transparency requirements for AI-generated content begin to take effect in August. The industry is already resisting mandatory measures, with retailers advocating for exemptions for AI-generated advertisements from these EU regulations. A voluntary label that advertisers declare themselves is much less strict than what is being considered in Brussels and forms part of a wider debate over the AI Act.

      Additionally, Google does not have a uniform policy across its platforms. On YouTube, the platform will automatically label AI-generated videos regardless of whether creators disclose this information, representing a firmer stance compared to the reliance on advertiser honesty in this case.

      While this feature represents a step toward greater transparency in a market oversaturated with synthetic media—where even Google has categorized some AI-generated content as spam—offering users a means to inquire about how an ad was created is an improvement over having no information at all.

      Whether this will alter advertiser behavior remains to be seen, especially in an environment where misleading advertising is already a profitable issue. A label is only beneficial if those with the most to conceal choose to use it.

      For now, Google has developed the disclosure feature and given advertisers control over it. The honest advertisers will utilize it, while those who don’t are precisely the reason such a label is necessary.