Microsoft Advertising is placing greater emphasis on transparency as artificial intelligence becomes increasingly embedded in the way brands create advertising content, with advertisers now expected to disclose certain AI generated or AI altered material used in their campaigns.

Significantly, the updated guidance signals a broader shift in digital advertising, where the speed and scale offered by generative AI are being matched by growing expectations around consumer disclosure, consent, accuracy and accountability.

So, under the new guidance, advertisers remain responsible for ensuring that AI assisted advertisements comply with applicable laws and Microsoft’s advertising policies in every market where their campaigns appear.

Meanwhile,the requirements cover synthetic content generated or significantly modified with artificial intelligence, particularly where the material could affect how consumers interpret an advertisement.

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Microsoft is also calling on advertisers to preserve provenance information attached to AI generated assets. This includes metadata, watermarks and other technical signals that can help establish how an image, video or audio asset was created or modified.

Where disclosure is required, the company says advertisers should make that information clear and position it close to the relevant content. For visual and audiovisual advertising, Microsoft recommends incorporating the disclosure directly into the image or video rather than relying solely on information outside the creative.

Advertisers can also use Microsoft’s existing ad disclaimer functionality where the relevant advertising formats support the feature.

However, disclosure alone does not make problematic content acceptable.

Microsoft maintains that advertisements can still face rejection, restriction or removal where they contain prohibited deepfakes, falsely represent people or organisations, use an individual’s likeness or voice without the necessary permission, or fail to meet applicable disclosure requirements.

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The platform also warns advertisers against interfering with machine readable provenance information attached to AI generated material.

This is particularly significant as brands increasingly use generative tools to produce campaign visuals, voice content and video at a scale that would previously have required considerably more time and production resources.

Microsoft says content created through its own AI tools can carry machine readable provenance data, metadata and imperceptible watermarks designed to indicate AI involvement.

However, these technical signals may not be visible to consumers. Therefore, the presence of embedded provenance information does not necessarily remove the need for a clear consumer facing disclosure when one is required.

For advertisers, the new guidance places greater responsibility on the creative review process.

Before submitting AI assisted advertising, marketers are expected to examine the material carefully and verify that the people, products, locations, claims and events represented in the creative are accurate.

They must also consider whether the individuals or entities depicted have given the necessary permissions, particularly when AI tools reproduce or alter a person’s voice or likeness.

Beyond compliance, the development highlights a growing challenge for the advertising industry: how to take advantage of AI’s creative capabilities without weakening consumer trust.

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In the meantime, as synthetic media becomes more sophisticated, agencies and advertisers will increasingly need processes that identify AI involvement, preserve content provenance and determine when audiences should be explicitly informed.

Furthermore, the issue also extends beyond technology itself. Brands must consider the legal and ethical implications of using synthetic content across different markets, since disclosure and consent requirements can vary from one jurisdiction to another.

Consequently, Microsoft is urging advertisers to review the rules applicable to each market before deploying AI assisted campaigns, rather than assuming that a single disclosure approach will work everywhere.

Moreso, the guidance comes as advertising platforms, agencies and brands continue to integrate AI into creative development, production and campaign execution. For marketers, the message is increasingly clear: AI can accelerate the production of advertising, but responsibility for what ultimately reaches consumers remains with the advertiser.

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