Deepfakes and AI Content: Navigating Brand Legal Challenges

Deepfakes and AI-generated content are transforming brand partnerships, presenting unprecedented brand engagement opportunities—and significant legal challenges. As brands navigate this new digital landscape, understanding the legal implications of deepfakes and AI content has never been more important. In this guide, we explore how brands can partner safely and successfully using AI tools. Ready to future-proof your strategies?

Understanding Deepfakes in Brand Partnerships

Deepfakes—hyper-realistic synthetic media generated by artificial intelligence—are now front-and-center in both marketing innovation and legal debate. Brands are leveraging deepfakes to rejuvenate classic campaigns, enhance influencer marketing, and reach wider audiences. Yet, their use is not without controversy.

By definition, deepfakes manipulate visual or audio content, making it appear that someone said or did something they never did. In the context of brand partnerships, this may involve digitally recreating a celebrity spokesperson or generating realistic testimonials. While such strategies can boost engagement, they pose new legal and ethical risks.

• Authenticity: Brands risk audience backlash if content appears deceptive.
• Consent: Partners must obtain explicit permission to use a person’s likeness via deepfakes.
• Reputational Risk: Misleading AI content may damage trust or result in costly lawsuits.

Key Legal Risks of AI-Generated Content for Brands

Brands incorporating AI-generated content into partnerships must navigate a nuanced legal landscape in 2025. High-profile cases, such as celebrity deepfakes used without consent, have underscored the importance of compliance and liability management.

Main legal risks include:

1. Right of Publicity: Unauthorized use of a person’s likeness, voice, or identity can violate publicity rights, leading to legal claims.
2. Copyright Infringement: AI-generated images may still infringe underlying copyrighted materials if training data or outputs rely on protected works without proper licensing.
3. Defamation and False Endorsement: If AI-generated content implies a false partnership or statement, brands face not just legal but also reputational consequences.
4. Consumer Protection Laws: Regulations increasingly require that AI-generated content—including deepfakes—be clearly identified to avoid misleading audiences.

The EU AI Act reinforced these requirements, and similar regulations are emerging globally. Brands must now implement compliance checks before distributing AI content.

Framework for Securing Consent and Clearances

To use deepfakes or AI-generated content ethically and legally in collaborations, brands need robust consent protocols. Traditional model and talent releases may not be sufficient for AI-era challenges. Brands should implement:

• Explicit Written Consent: Acquire written agreement from all individuals whose likeness or voice will appear in AI-generated content.
• AI-Specific Clauses: Ensure contracts specify permitted uses, creation methods, and any limitations regarding AI or synthetic media.
• Partner Transparency: Disclose to partnership participants how AI tools will be used at all stages of content creation and distribution.
• Review Processes: Establish review stages allowing talent and stakeholders to approve final AI outputs before publication.

Implementing these processes reduces litigation risk and builds trust with both partners and consumers.

Best Practices for Transparency and Labeling AI Content

With regulatory bodies ramping up enforcement in 2025, transparency in AI-generated content is paramount. Leading brands now prioritize disclosure to meet both legal requirements and consumer expectations.

1. Clear Labeling: Mark AI-generated or manipulated content with visible disclosures such as, “This content was created using artificial intelligence.”
2. Accessible Policies: Publish content policies outlining your brand’s use of AI and deepfake technology, accessible by consumers and partners alike.
3. Employee Training: Educate staff and creative partners on the legal and ethical standards for collaboration using AI-driven content.
4. Continuous Monitoring: Monitor distributed content and digital platforms for misuse or unauthorized AI adaptations of your brand assets.

Following these best practices reduces risk, protects your brand’s reputation, and enhances user trust. Recent surveys indicate that 78% of consumers want to know if AI was used in branded campaigns, making transparency both a legal and a strategic imperative.

Adapting Partnership Contracts in the AI Era

Brand and influencer partnership agreements are evolving rapidly to keep pace with advances in AI. In 2025, contracts need to address several AI-specific considerations:

• Ownership of AI Outputs: Clearly define which party owns the rights to content generated using AI tools or deepfake technology.
• Warranties and Indemnities: Require partners to warrant that obtained rights and permissions are sufficient—and indemnify against third-party claims related to AI manipulation or likeness use.
• Distribution Rights: Specify in which channels and markets AI-generated content may be distributed, and for how long.
• Dispute Resolution: Determine processes for resolving conflicts over deepfake use, accidental misrepresentation, or consumer complaints.

Collaborative, up-to-date legal counsel is crucial for drafting agreements that anticipate future technological developments and regulatory shifts.

Future Legal Trends for Deepfakes and Brand Partnerships

The legal landscape for deepfakes and AI-generated content in brand partnerships will continue to evolve. In 2025, expect growing regulatory scrutiny, rising consumer awareness, and new best practices. Brands that lead with transparency, consent, and a commitment to compliance will outperform competitors and avoid costly legal missteps. Keeping ahead means ongoing education and a proactive legal strategy.

Conclusion

As brand partnerships increasingly embrace deepfakes and AI-generated content, understanding and adhering to evolving legal requirements is essential. Prioritize explicit consent, transparency, and AI-specific contract terms to reduce risk and build consumer trust. Stay proactive, informed, and adaptive to ride the wave of innovation with confidence.

FAQs

• Are deepfakes legal in brand campaigns?

  Deepfakes are legal if all rights and permissions are secured, the use is transparent, and content is not misleading. However, using someone’s likeness without consent or failing to label AI content can result in legal action.

• How can brands get consent for AI-generated content?

  Brands should obtain explicit written consent from any individual whose likeness or voice will be recreated using AI, and include specific clauses about AI usage in their contracts. This protects both the brand and the individual.

• What happens if a consumer can’t tell that content is AI-generated?

  Brands may face compliance issues, regulatory penalties, or consumer backlash if they fail to disclose AI-generated content. Many markets now require clear labeling to prevent deception and ensure ethical standards.

• Who owns the rights to AI-generated content?

  The ownership of AI-generated content depends on partnership agreements and licensing terms. Brands should clarify IP rights and usage terms during contract negotiations to avoid future disputes.

• What steps can brands take to ensure compliance with new AI laws in 2025?

  Brands should work closely with legal advisors, maintain clear documentation, routinely audit content policies, and stay updated on evolving AI regulations affecting their markets.