New transparency requirements under the European Union’s AI Act took effect on August 2, 2026.
The rules require certain providers and business users of AI to disclose when people are interacting with AI or viewing AI-generated or manipulated content. Canadian companies may also be affected if they offer AI systems in the European Union or serve European customers.
This article provides general information rather than legal advice. Businesses operating in the European Union or serving EU customers should seek guidance based on their specific activities, systems, and responsibilities.
What Do the EU AI Disclosure Rules Cover?
Article 50 of the EU AI Act establishes transparency requirements in four main areas.
AI Chatbots and Customer Interactions
Providers must design interactive AI systems so people know when they are communicating with AI rather than a person.
This may include customer-service chatbots and AI voice assistants. A separate disclosure may not be required when it is already obvious that the interaction involves AI.
AI-Generated and Manipulated Content
Providers of AI systems that generate or alter text, images, audio, or video must support machine-readable marking that makes the content’s AI origin detectable.
A visible “made with AI” label may not always be required, but businesses should understand how their tools mark synthetic content and whether additional disclosure is needed.
Deepfakes and Public-Interest Content
Organizations using AI to create or manipulate deepfake images, audio, or video generally need to disclose that the material was artificially generated or altered.
Disclosure may also apply to AI-generated or manipulated text published to inform the public about matters of public interest. An exception may apply when the content has undergone human review and is subject to editorial responsibility.
This makes documented human review especially important for public-facing content.
Emotion Recognition and Biometric Categorization
Businesses using AI to recognize emotions or categorize people through biometric data must inform the individuals exposed to the technology.
These activities may also be subject to privacy, employment, consumer-protection, and data-protection requirements.
Who Is Responsible?
The Act distinguishes between providers that develop or offer AI systems and deployers that use them professionally.
A business may therefore have obligations even if it did not develop the technology itself. This could include using an AI chatbot, publishing synthetic media, or working with an agency that uses AI to create public-facing content.
What Should Businesses Review?
Businesses with EU customers, users, campaigns, or operations should identify where AI appears in their customer experience and content workflows.
Review:
- Customer-facing chatbots and assistants
- AI-generated marketing images, audio, and video
- Emotion-recognition or biometric tools
- Agency, contractor, disclosure, and review processes
The European Commission has also approved a voluntary Code of Practice on Transparency of AI-Generated Content to help organizations address certain marking and labelling requirements.
Non-compliance with Article 50 may result in fines of up to €15 million or 3% of worldwide annual turnover. Different calculations may apply to small and medium-sized businesses.
Prepare Your AI Workflows for Greater Transparency
The new rules do not prohibit businesses from using AI. They make transparency, documentation, and human oversight more important.
Businesses should document where AI is used, who reviews it, and when disclosure may be required.
Foundery’s AI Readiness Audit can help assess how AI is affecting your website, content, search visibility, and digital workflows.
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