Quarterly BAS Due (July–September)
Form 1099-NEC & Contractor Payment Reporting Check
Why this matters.
UK businesses are increasingly using AI to generate product images, video ads, synthetic voiceovers, and even AI “spokespeople” or influencer likenesses — often without a clear policy on when this needs to be disclosed. The Advertising Standards Authority and its sister body, the Committee of Advertising Practice, have made clear through updated guidance on AI in advertising that the existing CAP Code still applies in full: ads must not materially mislead consumers, whether by omission or otherwise, and content that looks like a genuine customer, real footage, or an authentic demonstration but is wholly or partly AI-generated can breach Rule 3.1 if that fact isn’t made clear. The ASA has already ruled against ads using undisclosed AI-generated “before and after” imagery and synthetic testimonials, and enforcement is expected to increase as AI tools become standard in small business marketing. This sits alongside the Digital Markets, Competition and Consumers Act 2024, which gives the Competition and Markets Authority direct powers to fine businesses up to 10% of global turnover for unfair commercial practices — including misleading actions and omissions — without needing to go to court first, following its unfair trading provisions coming into force in April 2025. Fake or undisclosed AI-generated reviews and testimonials are also explicitly banned outright under the Act’s list of automatically unfair practices. For a business relying on AI to produce ad creative, product photography, voiceovers, or review content, the risk isn’t the use of AI itself — it’s failing to disclose it where doing so would change how a reasonable consumer understands what they’re seeing, and running into CMA or ASA enforcement as a result.
