AI is producing reality-bending midterm ads about defaced Bibles, upscale dinners and a board game with a "Death to America" playing card.

Why it matters: The warnings about deepfakes are coming true. Election laws haven't kept pace with a world where campaigns can put words in opponents' mouths and create realistic-looking scenes that didn't happen.

The Wesleyan Media Project found $137 million had been spent on 220 AI-generated ads through Oct. 11, mostly from Republicans.

Four states have laws prohibiting certain uses of AI-generated deepfakes in political ads, while 27 more require some form of disclosure about their use.

No federal law specifically regulates AI-generated political ads.

The big picture: An Axios analysis found numerous political ads partly or fully made by generative AI, sometimes undisclosed.

Georgia Senate: Senate Leadership Fund, a super PAC aligned with Senate Republicans, has run a series of AI-generated deepfake ads depicting Democratic Sen.…