EU transparency rules require clearer AI disclosures

The European Commission has published a voluntary Code of Practice on marking and labelling AI-generated content to help businesses meet transparency duties under the EU AI Act. The obligations apply from 2 August 2026, with a transitional period until 2 December 2026 for certain systems already on the market. UK businesses can fall within scope when they place systems on the EU market, put them into service there or use AI whose outputs affect people in the EU.

Businesses must tell people when they are interacting with AI unless that is obvious from the context. Generative AI providers must make generated or manipulated outputs detectable through machine-readable marking. Businesses deploying AI professionally must clearly label deepfakes and disclose AI-generated text published on matters of public interest, subject to carve-outs including human review or editorial responsibility.

Compliance may require changes to chatbot scripts, interfaces, advertising workflows, publishing approvals and supplier arrangements. Businesses should map their AI uses and determine where notices, labels or technical marking are needed. Failures can bring financial penalties, reputational damage, customer complaints and contractual disputes. Although voluntary, the code could become a benchmark for regulatory and customer expectations.