The EU Commission’s AI Act transparency requirements went into force on 2nd August, 2026. The European Commission’s AI Office, together with national authorities, will begin enforcing the new rules.
Under the rules, AI systems including chatbots must tell users they are dealing with AI.
Images, videos, or audio that have been edited or generated using AI will need to be labeled as AI-generated or altered content.
There are guidelines on prohibited AI practices.
The rules also cover advanced general-purpose AI (GPAI) models that the EU believes may pose systemic risks. Their providers must address possible risks of “large-scale harm, such as risks linked to chemical, biological, radiological and nuclear incidents, loss of control, cyber offense, harmful manipulation and threats to fundamental rights. ”
Many large AI providers have accepted the new requirements rather than pursue a pyrrhic battle. There is a voluntary Code of Practice on Transparency of AI-Generated Content which many have signed.
Critics point to the EU’s tendency to regulate to an extreme, undermining innovation, while pushing entrepreneurs to other jurisdictions.
Stuart Tait, Head of LPPA Partnerships, UK & EU, at Carta, says the EU is correct to mandate that people must know when they are dealing with AI, but while useful, it is not necessarily indicative of trust or veracity.
“It does not tell you whether an answer is accurate, where the information came from, or who takes responsibility when something goes wrong. Transparency may help people understand when AI is being used, but confidence in the technology will ultimately depend on whether businesses can answer those harder questions,” cautions Tait. “The implications will also stretch far beyond Europe. Global businesses cannot assume the rules only affect AI developed by European companies and a US company using AI across its European operations may face many of the same responsibilities.”
Tait states that large companies will need to prove their systems are “properly tested, understandable and subject to meaningful human oversight.” He believes there is the potential for Europe to set up a global standard which others will follow.
