In a landscape where campaign ads are set to smash a $10 billion record, Minnesota finds itself in the eye of the AI deepfake storm. At least 15 AI-generated ads have emerged since November, according to NBC News, raising profound concerns around the integrity of elections. But in Minnesota, a particular ad has ignited both legal and ethical debates.

Lt. Governor Penny Flanagan found herself at the center of this controversy. According to Cointelegraph, she took to BlueSky on June 3 to call out a PAC supporting her Senate primary opponent, Angie Craig. "You might see a TV ad starring something that... kind of looks like me," she posted. The ad in question portrayed Flanagan atop a pile of cash, suggesting questionable ties to special interests. "My opponent's super PAC is using an AI deepfake of me to mislead voters," she declared.

Flanagan's outrage isn't unwarranted. Minnesota law bans AI deepfakes within 90 days of an election if used to harm a candidate's reputation knowingly. Yet, this ad slipped through a technicality as it aired post-nomination, before the 90-day window closed. Local Democrat Maye Quade, who championed this legislation, argued the ad violated the spirit, if not the letter, of the law. "People don’t like this, broadly," she asserted.

In a twist of legislative irony, a federal bill intended to shield AI from state regulation failed to pass. The ACLU criticized such efforts, arguing for state rights to protect residents from AI harms. Still, the spirit of the One Big Beautiful Bill Act—signed by President Donald Trump—looms large, having nearly included a ban on state AI regulation.

As political gears grind, the question remains: will the legal system catch up with technology fast enough to preserve electoral integrity? In Minnesota, Flanagan's campaign consults lawyers. Across the U.S., politicians weigh in on the murky waters of AI in politics. "Most campaigns probably want to do the right thing," Mark Jablonowski of DSPolitical told NBC. Yet, as the deepfakes proliferate, the thin line between reality and fiction blurs ever further.

The election season is ramping up in the United States, meaning that airwaves and social media are flooded with campaign ads. Candidates, in addition to the political action committees (PACs) supporting and opposing them, are projected to spend a record-breaking $10 billion in ads this cycle. Some of that is going into AI deepfakes. At least 15 AI-generated campaign ads have run since November, according to NBC News. Some have used deepfakes to portray a candidate doing or saying things that compromise their campaign’s image.

Flanagan was referring to an ad run by a PAC supporting her opponent in the Senate primary race, fellow Democrat and US Representative Angie Craig. The ad shows Flanagan standing atop a large pile of cash and criticizes her alleged ties to special interest groups. "My opponent's super PAC is using an AI deepfake of me to mislead voters. They can't win with the truth - so they're resorting to lies.” “It's disgusting. Minnesotans deserve better.”

The ad may run afoul of Minnesota campaign laws. In 2023, Democratic State Representative Maye Quade introduced a bill that bans AI deepfakes. It was passed into law, and “anyone who widely shares a deep fake within 90 days of an election” is guilty of a crime. This, provided that the person also: Knows or should have known the ad was a deepfake and made without the consent of the depicted person, and acted with the intent to harm a candidate’s reputation to influence an election.

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The ads ran after the DFL, Minnesota’s Democratic party, nominated Flanagan, so technically it may have not violated the law. Still, Flanagan's campaign is reportedly consulting lawyers. Quade told local media that the ad violated the spirit of the law, and that people in general don’t like AI being used this way. “People don’t like this, broadly [...] What campaign on either side of the aisle is going to help voters feel good about their candidate using this?”

On the Democratic side of the aisle, 40 DFL state legislators signed a letter condemning the use of AI deepfakes in campaign materials. They noted that, in 2023, “lawmakers voted nearly unanimously to ban the use of deceptive AI-generated deepfakes in elections, recognizing the threat manipulated AI content poses to voters and public trust.” “Regardless of party, the use of AI-generated deepfakes in campaign advertising is unacceptable.”

Mark Jablonowski, the CEO of advertising firm DSPolitical, told NBC that he thinks most politicians will rise above it. “I think most campaigns on both sides of the aisle probably want to do the right thing [...] There, of course, are going to be examples that you can point to where people are going about it the wrong way.” The PAC that issued the ad, North Star Dawn PAC, did not respond to Cointelegraph’s request for comment.

Public Citizen, a consumer advocacy group, submitted a petition for rulemaking before the FEC in 2023, asking the commission to issue rules for AI. Instead, the body “decided not to initiate a rulemaking.” “The Commission determined that the statute’s fraudulent misrepresentation ban is technology neutral, applying to all means of the specified fraud, including AI-assisted media.”

One may not expect quick action from the federal government, at least not from Congress, on AI. In 2023, Senator Amy Klobuchar and Representative Yvette Clarke, both Democrats, introduced the REAL Political Advertisements Act in their respective chambers. However, the bill failed to pass in either house. If anything, the US Congress shows a total unwillingness to meaningfully regulate AI. Nearly one year ago, President Donald Trump signed the One Big Beautiful Bill Act into law. The final version narrowly avoided including a 10-year ban on any state and local regulation of AI, giving the industry carte blanche for anything from building data centers to how AI would be used in popular media.

Now, two Congressmen are back at it. Democrat Lori Trahan and Republican Jay Obernolte on June 4 introduced a bill that, if passed, would ban states from passing laws “targeting artificial intelligence model development.” According to the American Civil Liberties Union (ACLU) “This could include anything from privacy regulations to antidiscrimination requirements to AI safety laws.”

The ACLU noted that the aforementioned 10-year ban was stripped from the Senate file in a near-unanimous 99-1 vote. Jina John, senior policy counsel for AI, privacy and technology at the ACLU, said, “This draft bill fails to learn from Congress’s previous attempts to block state AI regulations. States must be able to protect their own residents from harm, hold tech companies accountable, and ensure that AI is safe and trustworthy.”