Artificial intelligence can help businesses create advertisements, website copy, social media posts, product descriptions, and email campaigns more efficiently. But faster content creation does not remove a business’s responsibility to ensure its marketing is truthful.
AI-generated marketing should be treated as a draft, not as verified content that is automatically ready for customers.
Can California Businesses Use AI in Marketing?
Yes. AI can help with brainstorming, outlining, drafting, and adapting content for different platforms. The key is maintaining human oversight.
Before publishing AI-assisted marketing, confirm that:
- Customer reviews and testimonials are authentic.
- Product and service claims are accurate.
- Statistics and performance statements are supportable.
- Savings, health, and safety claims have been verified.
- Images, headlines, and disclosures do not create a misleading impression.
AI tools can produce polished language even when the underlying information is incomplete or incorrect. A statement that sounds confident is not necessarily one the business can prove.
The central question is not, “Did AI write this?” It is, “Can our business truthfully make this representation?”
California False Advertising Laws and AI
California’s advertising laws can apply to statements created with AI even though the statutes do not focus on a specific technology.
California Business and Professions Code section 17500 addresses untrue or misleading statements made in connection with the sale of goods or services. It includes statements distributed online and considers whether the advertiser knew, or should have known through reasonable care, that a statement was false or misleading.
California Business and Professions Code section 17200 defines unfair competition to include unlawful, unfair, or fraudulent business practices and unfair, deceptive, untrue, or misleading advertising.
Whether a particular advertisement violates the law depends on its wording, context, audience, support, and other facts. Still, businesses should not assume that using an AI platform separates them from statements they approve and publish.
Reviews, Testimonials, and AI-Generated Endorsements
Generative AI can quickly create realistic names, quotes, profile images, and stories. That creates risk when fictional content is presented as a real customer experience.
An AI tool might generate statements such as:
- “Our customers save an average of 30%.”
- “Nine out of ten users see results within one week.”
- “This service transformed my company.” — Sarah M., Business Owner
Each statement appears factual. Before publication, the business should know where the claim came from and whether it can be supported.
The Federal Trade Commission’s Rule on the Use of Consumer Reviews and Testimonials addresses deceptive practices involving fake or false reviews and testimonials. Businesses should not present AI-created praise as the genuine experience of a customer who does not exist.
Before using a testimonial, ask:
- Is this an actual customer?
- Did the person use the product or service?
- Does the statement accurately reflect the person’s experience?
- Do we have permission to publish it?
- Have edits changed its meaning?
- Was an incentive or business relationship involved?
- Are the stated results supportable?
Businesses should also consider whether an employee, influencer, vendor, family member, or compensated reviewer has a relationship that should be disclosed.
A Seven-Step AI Marketing Review Process
1. Identify factual claims
Flag numbers, percentages, timeframes, rankings, customer counts, certifications, performance claims, guarantees, and statements about health, safety, savings, or legal compliance.
Words such as “proven,” “industry-leading,” “trusted by thousands,” and “guaranteed” may also communicate factual claims.
2. Confirm the source
Determine whether each statement came from company records, customer data, product testing, a reliable study, a vendor, or the AI tool itself.
If no one can identify the source, the statement should not be treated as verified.
3. Match claims to support
Objective claims may need support such as sales records, survey data, testing results, customer authorization, licenses, certifications, or reliable research.
A general brand statement is different from a measurable health, safety, technical, or savings claim.
4. Authenticate testimonials
Keep the original customer statement, the date it was provided, permission to use it, any edits made, and information about incentives or business relationships.
Avoid asking AI to create a “realistic customer testimonial” unless it remains internal and is never presented as genuine.
5. Assign a human approver
Identify who must approve AI-generated content before publication. Depending on the topic, this may be a business owner, marketing leader, product specialist, compliance professional, HR representative, or legal counsel.
6. Save the final version and support
Maintain a copy of the approved advertisement, where and when it appeared, and the records supporting its claims. This makes updates easier when products, prices, studies, or business practices change.
Building an Internal AI Marketing Policy
A written policy can address:
- Approved AI platforms
- Confidential or personal information employees may not enter
- Required verification of factual claims
- Rules for reviews and testimonials
- Disclosure and approval responsibilities
- Recordkeeping
- Procedures for correcting inaccurate content
- Expectations for agencies, freelancers, and vendors
Training matters, too. Editing AI-generated language for tone and grammar is different from confirming that the underlying statement is true.
Using AI With Appropriate Oversight
AI can help businesses communicate more efficiently, but its value depends on the process surrounding it.
A thoughtful review can help business owners confirm that testimonials are real, factual claims are supportable, disclosures are clear, and the final message accurately represents the organization.
At Koegle Law Group, we encourage California businesses to approach emerging technologies with practicality and intention. Clear policies, appropriate review, and ongoing education can help organizations benefit from AI while maintaining trust in their public communications.
If your business is developing an AI-use policy or reviewing its advertising practices, we welcome the opportunity to help you understand the legal considerations and discuss a practical approach for your organization.
👉 Contact Koegle Law Group to schedule a consultation and learn how we can help guide your business the right way.
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DISCLAIMER: This client alert is provided for informational purposes only and does not constitute legal advice. The information contained herein may not reflect the most current legal developments. You should consult with qualified legal counsel before taking any action based on the information in this alert. Receipt of this alert does not create an attorney-client relationship.