Artificial intelligence is already being used in commercial campaigns, and now SAG-AFTRA has addressed it directly. The 2025 update to the Commercials Contract includes new rules around how AI can be used on union productions.
The contract outlines two key terms: digital replicas and synthetic performers. Each has specific requirements around usage, permissions, and costs. Ignoring them could lead to compliance issues, delayed shoot approvals, or unexpected talent expenses.
For producers, this isn’t just a legal update. These rules affect how you budget, schedule, and staff union jobs. The paperwork is different. The costs are different. And if you’re not factoring them in early, you’re going to feel it during production.
In this blog, we’ll walk through what these terms actually mean and how they’ll shape the way you plan your next campaign, whether you’re already working with union talent or just trying to stay ahead of the curve.
2025 SAG-AFTRA Commercials Contract
The 2025 SAG-AFTRA Commercials Contract introduced some of the most significant updates the film industry has seen in years, particularly around artificial intelligence. For the first time, the contract lays out clear rules on how AI can be used in commercials, defining two categories:
- Digital Replicas: AI likenesses of real performers
- Synthetic Performers: Fully AI-created characters not based on a specific person
Both come with specific notice, consent, and payment requirements to protect performers while giving advertisers and producers a terms and regulations to follow for using AI responsibly.
What Are Digital Replicas in Commercials?
Advertisers are already using AI to extend campaigns, update performances, and reduce shoot days. One of the most talked-about tools right now is the digital replica. These AI-generated likenesses allow producers to adjust lines, change expressions, or repurpose footage—without bringing the performer back to set.
The flexibility is real, but so are the rules. Digital replicas come with specific requirements for consent, usage, and payment, all of which are now covered under the 2025 SAG-AFTRA Commercials Contract.
What qualifies as a digital replica:
- An AI recreation of a real performer’s face, voice, or movement
- Used to digitally “appear” in a spot, even if the performer wasn’t on set
- Requires the performer’s knowledge, consent, and compensation
The contract treats this type of work like any other performance. If you’re using a digital replica, you need to follow the same protections you’d apply to a live shoot.
Not to be confused with synthetic performers:
- Digital Replicas are based on real people and require approval
- Synthetic Performers are fully AI-created and not tied to anyone
Each comes with different union rules, paperwork, and potential costs. Knowing the difference helps avoid approval delays and surprise fees during production.
5 Key Challenges with Digital Replicas Under the Commercials Contract
The 2025 SAG-AFTRA Commercials Contract makes it clear that using digital replicas isn’t as simple as dropping AI into your workflow. Instead, it creates a new set of challenges for producers that affects budgets, approvals, and campaign flexibility. Below are five key areas where these rules hit hardest for producers.
1. Budgeting surprises
One of the biggest misconceptions about AI in commercials is that it will cut down on talent costs. Under the 2025 SAG-AFTRA Commercials Contract, the opposite is true. Using a digital replica triggers a 1.5× scale session fee for each commercial, on top of the standard use and holding fees, as if the performer had appeared live on set.
For producers, this means there is no AI discount when it comes to talent. A digital replica carries the same financial weight as a physical performance, plus the added layers of consent and compliance. If budgets aren’t planned with these costs in mind from the start, producers risk overruns that could derail production.
2. Consent bottlenecks
The consent process is one of the biggest hurdles with digital replicas. The 2025 SAG-AFTRA Commercials Contract requires producers to give performers 48 hours notice and secure written consent that details exactly how the replica will be used, including dialogue, visuals, and campaign scope.
Any change such as new lines or altered visuals requires a brand new agreement. For producers, receiving consent from union talent could slow down turnaround edits, making upfront planning essential to avoid last-minute setbacks.
3. Production planning constraints
Advance consent for a digital replica isn’t open-ended, it only applies under specific conditions. The new contract makes consent valid only if the spot is for the same advertiser and product line and goes into production within the original Maximum Period of Use (MPU).
For producers, that creates real limitations. If a campaign changes to a new concept, expands to another product line, or extends beyond the original MPU, fresh consent must be secured. That means more paperwork, more approvals, and often more costs. In practice, long running or evolving commercial productions require careful planning upfront to avoid any setbacks mid-production.
4. Digital replica data & asset management
When managing digital replica assets, producers are only allowed to retain digital replica files for the duration of the Maximum Period of Use (MPU) unless longer storage rights are specifically negotiated. Beyond that, producers are responsible for controlling who has access to the asset and making sure files are either deleted or renewed once the MPU expires.
Mishandling assets whether by storing them too long or failing to monitor access can create risks that could lead to disputes or penalties. For producers, this means treating DR files with the same care as contracts or legal documents to stay compliant and avoid liability.
5. Conflicts & exclusivity risks
When it comes to conflicts and exclusivity, the new contract makes it clear that using a digital replica is treated the same as a live performance. This means that if a performer’s likeness is used in a commercial, it can trigger the same category exclusivity restrictions as if they had been physically on set. For producers, this creates a critical pain point: a brand’s digital replica use could clash with existing exclusivity terms, leading to costly penalties or even the need to pull an ad entirely.
Synthetic Performers Aren’t a Free Pass
Synthetic performers might seem like a way around traditional casting—they’re fully AI-generated characters with no real-world counterpart. But under the 2025 SAG-AFTRA Commercials Contract, they still come with responsibilities.
Just because a synthetic performer isn’t based on a real person doesn’t mean it’s exempt from union rules. These performances are still treated as union work, and producers are expected to handle them accordingly.
Here’s what you need to know:
- Synthetic performers require a 1.5 x session fee plus Pension & Health (P&H) contributions on the 1.5x session and P&H on the use that would be due to the human performer.
- Union paperwork still applies, even when no human performer is used
The bottom line: Synthetic performers aren’t a shortcut. If you’re using them in a union commercial, you’ll still need to account for compliance and costs the same way you would with live talent.
Conclusion: Streamline AI Use for Your Next Union Commercial
AI is changing how we produce commercials, but it doesn’t replace the need for solid planning and union compliance. The 2025 SAG-AFTRA Commercials Contract clearly outlines how digital replicas and synthetic performers can be used—along with the required consent, compensation, and paperwork.
Understanding these updates now helps you budget accurately, avoid delays, and keep your production moving.
Need support? CMS Productions is a third-party SAG-AFTRA signatory with deep expertise in commercials, corporate, educational, and interactive media contracts. We help producers budget, plan, and properly hire union talent—whether you’re using traditional performers or AI-driven tools.
Get in touch to schedule a consultation. We’re here to make it simple.
