Google mandates labeling of AI-generated ads: advertising transparency

What happened?

On July 9, 2026, Google announced a new feature that adds a “created or edited with AI” label to ads appearing on its platforms: Search, Discover, and YouTube. The label appears in the “My Ad Center” panel, accessed by clicking the three dots or the info icon on each ad, as reported by TechCrunch. The Verge confirmed that the label appears under the “how this ad was made” tab. Google will automatically apply the label to ads created with its own generative AI tools (such as those in Google Ads), but for ads generated with third-party tools, the advertiser must manually enable it. The company warns that incorrect labeling could have consequences, though it does not specify concrete penalties. This measure is part of global efforts to regulate artificial intelligence in advertising, a topic that has gained relevance since the FTC warned in 2023 about deceptive use of AI in ads.

Why is this important?

This measure responds to growing concerns about misinformation and deepfakes in advertising. Generative AI can create hyperrealistic images, videos, and texts, which could deceive consumers. According to a 2025 Stanford University study, 40% of consumers cannot distinguish between a real ad and one generated by AI. By labeling ads, Google offers a transparency tool that allows users to make informed decisions. However, the system has critical limitations. As The Verge notes, the label largely depends on the advertiser's honesty, as Google does not proactively verify whether an ad was generated with AI. This could lead to underreporting or even fraudulent use of the label. In comparison, the European Union already requires mandatory labeling of AI-generated content under the AI Act, and platforms like Meta have implemented automatic labels since 2024. Google, however, opts for a hybrid model that leaves much in the advertiser's hands.

Consequences for the advertising ecosystem

For advertisers, this regulation implies a new compliance requirement. Companies using third-party generative AI tools, such as Midjourney or DALL-E, must implement processes to correctly label their ads. According to eMarketer data, spending on generative AI advertising reached $12 billion in 2025, and is expected to grow 35% annually. Agencies and advertising platforms will need to adapt their workflows to include this information, which could increase operational costs. For users, the label provides valuable context, but its effectiveness will depend on the adoption and truthfulness of labeling. A 2026 Pew Research study indicates that 67% of users would trust a labeled ad more, but only if the label is verifiable. Google plans to expand the feature to more regions, according to The Next Web, but has not given a concrete timeline. This contrasts with Apple's stance, which since 2023 requires all apps with AI-generated content to declare it on the App Store.

What should readers know?

• The label only covers ads on Google Search, Discover, and YouTube, not other services like Gmail or Maps.
• Ads created with Google's internal tools (like Performance Max with AI) are automatically labeled; those from third parties require manual labeling.
• Google does not audit compliance, so transparency depends on the advertiser. This opens the door to potential abuses, such as advertisers labeling non-AI-generated content to gain credibility, or omitting the label on AI-generated content.
• The feature is already available in some countries (United States and United Kingdom, according to sources) and will expand globally.
• The labeling does not apply to political ads, which already have their own regulations in countries like the US (FCC) and the EU.

“Transparency in AI advertising is a necessary step, but Google must go further and develop automatic detection systems to ensure its effectiveness. Meanwhile, consumers should remain skeptical and verify information on their own.” — TheVortiq

In summary, Google's initiative is a step forward, but insufficient. The advertising industry needs stricter standards and automatic verification mechanisms to prevent deception. Users, for their part, must stay vigilant and demand transparency from the brands they consume.