Deepfakes in Virginia: What Businesses Need to Know (and Why It Matters Now)

Artificial intelligence is actively shaping how disputes arise. One of the most significant emerging risks is the use of “deepfakes.”

Deepfakes are AI-generated images, videos, or audio that make it appear as though someone said or did something they never actually did. As this technology becomes more sophisticated and accessible, so does its potential for misuse. They can impact businesses in very real ways, including reputational harm, fraud, and evidentiary challenges in litigation.

What Qualifies as a “Deepfake”?

Virginia’s proposed legislation used the term “synthetic digital content” to capture a broad range of AI-generated or manipulated media.

In general, this includes:

• Fabricated or altered video
• AI-generated or cloned voice recordings
• Manipulated images
• Any digital content designed to create the false impression that a person engaged in conduct that did not occur

The significance of this definition reflects how easily modern tools can create convincing—but entirely false—content that may affect businesses, employees, and litigation.

How is Virginia Attempting to Address “Deepfakes”?

In 2025, the Virginia General Assembly passed House Bill 2124, known as the Synthetic Digital Content Act, to address the growing risks associated with AI-generated content.

Rather than creating an entirely new legal framework, the legislation was designed to incorporate synthetic digital content into existing Virginia law.

Among other things, the bill would have:

• Expanded Virginia Code §§ 8.01-45 and 8.01-46 to expressly include AI-generated images, audio, and video within the scope of defamation law, clarifying that fabricated digital content could give rise to liability in the same way as traditional false statements
• Created a separate Class 1 misdemeanor for the use of deepfake technology in connection with fraud-related offenses, meaning individuals could face additional criminal liability beyond the underlying fraudulent conduct
• Authorized individuals depicted in synthetic media to bring civil actions to recover damages, attorney’s fees, and other appropriate relief
• Established a legislative work group to study enforcement challenges and make recommendations for future regulation

However, despite passing both chambers and being signed into law, the bill included a reenactment clause requiring approval during the 2026 legislative session before it could take effect. That reenactment did not occur.

As a result, the law never became effective, leaving Virginia without a statute specifically addressing deepfake-related harms.

For now, businesses and individuals must rely on existing legal doctrines, including defamation and fraud. However, those laws were not developed with AI-generated content in mind, which can create uncertainty in how they are applied.

Can “Deepfakes” Impact Businesses?

The absence of a specific statutory framework does not eliminate the risk. Instead, it requires businesses to be more proactive in identifying and managing potential exposure.

Areas to consider include:

• Reputational harm arising from false or manipulated content
• Fraud involving impersonation or altered communications
• Workplace issues involving employees and synthetic media
• Questions surrounding the authenticity of digital evidence

These issues are already beginning to surface and will likely become more common as technology evolves.

What’s Next for Virginia’s “Deepfake” Laws?

Virginia’s effort to regulate deepfakes reflects a broader trend. Legislatures are continuing to evaluate how best to address emerging technologies while balancing concerns such as free expression and innovation.

It is likely that similar legislation will be introduced again in a future session, potentially in a revised form. In the meantime, technology is advancing more quickly than the law, and the risks associated with synthetic media are already present.

For businesses, this means staying aware of how existing legal frameworks—such as defamation and fraud—may apply in new and evolving contexts. Addressing potential issues early, particularly those involving reputational harm or fraudulent activity, can help mitigate exposure as the legal landscape continues to develop.

If you have any questions, please contact one of Sands Anderson's litigation attorneys.

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