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The European Commission enforces new AI transparency rules to help users identify chatbots and deepfakes

The European Commission has begun enforcing new transparency obligations under the AI Act, effective August 2. These rules require tech companies to clearly disclose when users are interacting with AI models or when content has been generated or altered by artificial intelligence. Providers must notify users when AI is used instead of a human, unless the interaction is obvious, and include machine-readable marks on synthetic audio, images, and text. Deployers are also required to label deepfake content designed to look real. Failure to comply with these requirements can result in fines of up to €15 million or 3% of a company's global annual turnover, whichever is higher. The administration announced that these rules aim to reduce misinformation and deception by helping people make informed decisions. While the rules apply to new systems immediately, models launched before August 2 have a four-month grace period until December 2. These powers allow the European Union to inspect models, restrict market access, and fine providers regardless of their headquarters, ensuring that U.S. companies like Google and OpenAI also face accountability.

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