Saying 'AI-powered' in your marketing? Here's what the Federal Trade Commission (FTC) says about advertising claims and AI, plus simple habits to keep your claims honest.
AI is a popular word in marketing right now, and the usual advertising rules still apply. Here's a plain-English starting point from the Federal Trade Commission (FTC), from its official business guidance checked on Oct 28, 2026.
The basics: in its small business advertising guide, the FTC says that under the FTC Act, advertising must be truthful and non-deceptive, advertisers must have evidence to back up their claims, and ads can't be unfair.
AI claims specifically: in its business blog post Keep your AI claims in check, the FTC lists questions it may ask about AI in ads:
- Exaggerating: are you exaggerating what your AI product can do?
- Better than non-AI: are you promising it does something better than a non-AI product? The FTC says you need adequate proof for that kind of comparison.
- Risks: are you aware of the reasonably foreseeable risks? The FTC says you can't just blame a third-party developer if something goes wrong.
- Really AI: does the product actually use AI at all?
Simple habits for small businesses (our suggestions):
- Say what it does: describe the real benefit, like faster replies, instead of big AI promises.
- Keep your proof: save the notes or tests behind any claim you make.
- Skip 'AI-powered' if it isn't: only say it if your product or service really uses AI.
- Check vendor claims: don't repeat a tool maker's claims in your ads unless you can back them up.
Telling customers when they're talking to AI is a related topic. See our AI disclosure lesson.
A friendly note: this lesson is a starting point for learning, not legal advice. The FTC's Business Center and a lawyer are great next steps for your situation.
Sources
Where each fact came from
- Overview · checked Oct 28, 2026 · rechecked regularly — Keep your AI claims in check