Do you have a chatbot on your website? Do you use AI-generated text in your marketing materials? If so, starting August 2, 2026, you have a legal obligation to tell your users about it.
The transparency requirement is one of the cornerstones of the EU AI Act (Regulation (EU) 2024/1689), and it affects far more businesses than most people realise.
What Is the Transparency Obligation?
Article 50 of the EU AI Act states that users must be clearly and promptly informed whenever they interact with an AI system. The principle is simple: people should always know whether they're dealing with a machine or a human.
This obligation applies to all AI systems classified as limited risk or higher – which covers the vast majority of business AI applications.
Which Applications Are Affected?
Chatbots & Virtual Assistants
Every chatbot on your website, shop, or app must be clearly identified as AI. Users must know they're talking to a machine before the conversation begins.
AI-Generated Content
Text, images, or videos created wholly or partly by AI must be labelled accordingly – whether in blog articles, product descriptions, or social media posts.
Emotion Recognition
Systems that analyse emotions (e.g., in customer service calls) require prior consent from the person being analysed and clear information about the AI's use.
Deepfakes & Synthetic Media
AI-generated or manipulated audio, image, or video content must be machine-readably labelled so it can be identified as synthetic.
How to Implement Transparency in Practice
The good news: implementation is straightforward in most cases. Here are concrete steps for common scenarios:
1. Website Chatbot
Add a clearly visible notice before the chat begins. Example:
"You are chatting with an AI assistant. For personal advice, contact our team at [phone number]."
2. AI-Generated Text & Images
Add a short disclaimer at the end of the content:
"This text was created with the assistance of AI and has been editorially reviewed."
3. AI-Powered Email Automation
If AI tools compose personalised emails, a note in the email footer or in your privacy policy is sufficient.
4. AI-Based Recommendation Systems
Inform users that product recommendations or search results are influenced by AI algorithms. An info icon with a tooltip can be enough.
Common Mistakes to Avoid
| Mistake | Why It's a Problem | Solution |
|---|---|---|
| Hiding the notice in the T&Cs | Not "clear and timely" – users rarely read terms | Place the notice at the point of interaction |
| Disclosing only after interaction | Must happen before or at the start of use | Inform at first contact |
| Overly technical language | Must be understandable for the average user | Use simple, plain language |
| No documentation of measures | No evidence available during an audit | Keep screenshots and implementation logs |
What Happens If You Don't Comply?
Violations of transparency obligations fall under the middle tier of the EU AI Act's penalty system:
- Up to €15 million or 3% of global annual turnover (whichever is higher)
- For SMEs, proportionate penalties apply, but they can still be substantial
- National supervisory authorities can also issue warnings and corrective orders before imposing fines
Real-World Examples
Example 1: E-Commerce Company
An online retailer uses an AI chatbot for customer support and ChatGPT for product descriptions.
- Chatbot → Must display AI disclosure before conversation starts
- Product descriptions → Should include a note that content is AI-assisted
Example 2: Marketing Agency
A digital agency creates social media content using AI image generators and AI copywriting tools for clients.
- AI-generated images → Must be labelled as AI-generated
- AI-written copy → Must include an appropriate disclosure
Example 3: SaaS Company
A B2B software company uses AI to personalise user onboarding emails and in-app recommendations.
- Personalised emails → Privacy policy update sufficient
- In-app recommendations → Info tooltip explaining AI-driven suggestions
Check Your Transparency Obligations
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