EU code sets AI content labeling expectations

The European Commission has published a Code of Practice on marking and labelling AI-generated content, giving businesses a practical route to meet transparency duties under the EU AI Act. The rules are aimed at situations where AI use is not obvious, requiring clearer notice to individuals when they are interacting with AI or viewing AI-generated material.

The EU AI Act does not automatically apply as UK domestic law, but UK businesses may be covered if they place an AI system on the EU market, put one into service in the EU, or use AI whose outputs affect people in the EU. That could bring UK technology providers, online platforms, retailers and marketing agencies with EU customers within scope.

The transparency obligations apply from 2 August 2026, with a transitional period until 2 December 2026 for certain systems already on the market. Businesses may need to disclose AI use in chatbots and automated customer service, make generative AI outputs detectable through machine-readable marking, label deepfakes, and disclose AI-generated text on public interest matters unless a carve-out applies.

Non-compliance can lead to financial penalties, customer complaints, contractual disputes and reputational harm. Businesses are advised to map AI use, review supplier arrangements, update customer-facing processes and decide where notices, labels or technical marking are required before the rules take effect.