From 2 August 2026, a significant new set of obligations under the EU AI Act has come into force. The transparency requirements in Article 50 are now directly applicable and enforceable across the EU, representing one of the first major compliance milestones under the Act.
The rules are designed to ensure that individuals can recognise when they are interacting with AI systems and when content has been generated or manipulated by AI. They apply not only to EU organisations, but also to businesses outside the EU that place AI systems on the EU market or whose AI-generated outputs are used within the EU.
The key transparency obligations include:
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AI interactions: Providers of chatbots, AI agents and other interactive AI systems must clearly inform users that they are dealing with AI rather than a human
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AI-generated content: Providers of systems that generate or manipulate text, images, audio or video must implement machine-readable marking mechanisms to facilitate detection of AI-generated content
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Emotion recognition and biometric categorisation: Organisations deploying these systems must inform affected individuals that such technology is being used
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Deepfakes and public-interest content: Organisations must disclose when certain content, including deepfakes and some AI-generated content relating to matters of public interest, has been artificially generated or manipulated
The European Commission has issued guidance and a voluntary Code of Practice to assist organisations with compliance. While a limited transitional period applies to some machine-readable marking obligations for existing systems, businesses should not assume they have until the broader AI Act deadlines to act.
Key takeaways
We recommend that in-scope businesses consider the following:
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Identify where AI is being used within your organisation, particularly customer-facing tools, chatbots, virtual assistants and content generation platforms
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Review whether AI-generated text, images, audio or video are being published externally and whether labelling or disclosure obligations may apply
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Assess contracts with AI vendors to understand which party is responsible for compliance with transparency requirements
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Update governance frameworks, policies and training to address AI transparency obligations
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Consider adopting technical measures to label and monitor AI-generated content
Our views
Failure to comply can lead to significant penalties, including fines of up to €15 million or 3% of worldwide annual turnover, depending on the nature of the infringement. As AI becomes embedded in everyday business operations, organisations should treat AI transparency as a core compliance issue alongside data protection, cybersecurity and consumer protection requirements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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