Can I Use AI to Generate Celebrity Avatars for Advertisements?

Dear Will & AiME,

Our creative team is experimenting with AI tools to generate digital avatars for upcoming ad campaigns. One of our ideas involves creating an avatar that resembles a well-known celebrity, but isn't an exact replica. We'd change a few features, maybe alter the voice slightly, and avoid using their name. Would that keep us in the clear legally?

— Ad Agency Director in Miami

Short answer💡

Creating AI-generated avatars that resemble real celebrities can still create legal risk, even if you alter features or avoid using their name. Publicity rights and false endorsement laws may apply if the avatar is recognizable or implies affiliation, so consent or clear differentiation is key.

Dear Ad Agency Director in Miami,

Using AI to generate avatars for advertising is becoming more common. But when those avatars start to look or sound like real people, especially public figures, you're entering the world of publicity rights and false endorsement laws. That doesn't mean you need to shut the idea down, but you do need to handle it carefully.

Can AI-Generated Avatars Infringe Celebrity Rights?

U.S. law protects individuals from having their identity used in advertising without their permission. This includes:

  • Right of publicity laws, which vary by state but generally cover name, image, likeness, and even voice.

  • False endorsement risks under the Lanham Act arise if it appears that a celebrity endorses your brand.

  • Close-enough lookalikes or soundalikes can still cause problems, even if you never mention the person's name.

How to Use AI Avatars in Advertising Without Legal Risk

  1. Use AI for Inspiration, Not Imitation

    It's fine to draw from pop culture, but your final avatar should be distinct. Think composite characters or stylized designs that clearly aren't one specific person.

  2. Consider Licensing if the Likeness Matters

    If your concept really depends on recognizable traits from a public figure, consider reaching out to license their likeness. It's more common (and more doable) than many teams think, especially for digital or regional campaigns.

  3. Add a Legal Checkpoint

    Before going live, have your legal team review the avatar and campaign materials. They can help flag potential issues early, before you end up on the wrong end of a demand letter.

AI gives creative teams new superpowers, but like any tool, it works best with a bit of restraint. Staying a step away from real likenesses or going through the proper channels is your best strategy.

-Will & AiME

Three Takeaways:

  1. Even altered AI avatars can violate publicity rights if they resemble real individuals.

  2. False endorsement claims can arise if consumers believe a celebrity supports your brand.

  3. Obtain consent or avoid recognizable likenesses to minimize legal risk.

Will Schultz & AiME

Will Schultz is an intellectual property and technology attorney and chair of Merchant & Gould’s Internet, Cybersecurity, and E-Commerce practice. He advises businesses on AI, online platforms, digital assets, and emerging technology law, drawing on experience as both a lawyer and entrepreneur.

https://www.merchantgould.com/people/william-d-schultz/
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