EU AI Act raises labelling stakes for AI ads

The EU AI Act will require companies to disclose in certain cases when content has been created or modified by AI, with rules enforceable from 2 August 2026 and potential fines of up to EUR 15 million or 3% of global annual turnover. For companies deploying AI systems, the main obligations beyond chatbot disclosure concern AI-generated or manipulated texts intended to inform the public on matters of public interest and deep fakes.

Draft EU Commission guidance indicates that AI-manipulated corporate reports containing investor information may fall within the public-interest text rules, while ordinary advertising copy, fictional works and user-only chatbot summaries generally may not. A broad exemption applies where AI-generated or manipulated text has undergone human review or editorial control and a person or entity takes editorial responsibility.

The more complex risk for advertisers is AI-generated or manipulated image, audio or video content that resembles existing persons, objects, places, entities or events and could falsely appear authentic or truthful. Product imagery, altered settings, simulated movement or celebrity-like depictions may require case-by-case assessment, especially where audiences include children or groups with lower digital and AI literacy.

Recommended transparency measures include visible labels, metadata, audio disclosures, and periodic labelling for longer video or audiovisual content. Companies are advised to establish internal procedures because breaches may also support unfair competition claims that could quickly block advertising.