Retail group seeks EU exemption for AI-generated ads

Eurocommerce, the European retail association whose members include Amazon, H&M, Inditex and Ikea, is asking EU tech chief Henna Virkkunen to exempt AI-generated advertisements from new disclosure requirements. The European Union AI Act enters into force on August 2 and requires companies to clearly label AI-generated or modified images, video or audio content that constitutes a “deep fake”.

In a letter sent to Virkkunen, Eurocommerce director general Christel Delberghe argued that AI-generated ads not intended to mislead users should not fall under the definition of a “deep fake”. The group cited examples such as generating an image of a living room to showcase a sofa or improving product visuals for presentation.

Retailers are already using AI widely in marketing production. Zalando has said the technology helped cut content production costs by 90%, while H&M and Zara are using AI-generated clones of models. Delberghe warned that applying the rule to AI-edited or AI-generated ads could require labels on a very large share of AI-assisted content, diluting the value of disclosures for consumers. The European Commission did not immediately respond to a request for comment.