The European Union is introducing mandatory labeling for AI-generated content that appears authentic. This was reported by Qazaqyia.kz citing The Guardian.

Starting Sunday, August 2, rules devised under the EU's landmark AI Act require that artificially generated images, audio, and text designed to look authentic must be labeled. The rules apply to new AI systems on the EU market from August 2, while existing ones have an extra four months to comply.

Protecting democracy

According to Green MEP Sergey Lagodinsky, who helped negotiate the AI Act, this is a matter not only of customer protection but also of democracy protection. "Making transparent this information is something which we need to preserve our democracy and the authenticity of facts online," he told The Guardian.

Under the rules, synthetic text, images, video, and audio designed to look truthful must be visibly marked as AI-generated and contain a digital watermark to show the artificial origins of the content. Texts on matters of public interest must also be labeled as AI-made if there is no human editorial oversight.

Companies are encouraged to label AI-generated content pre-dating the rules, although this is not compulsory. The rules will not apply to users' personal content, and there is an exemption for "evidently artistic," satirical, and fictional works.

Fines and labels

Failure to comply could result in fines of up to €15 million or 3% of a company's worldwide global turnover. The EU executive has created black-and-white labels anyone can use, although companies can design their own.

Deepfake examples

Deep fakes have included audio purporting to reveal the Slovakian opposition leader Michal Šimečka conspiring with a journalist to rig elections, mocked-up videos of the French president, Emmanuel Macron, dancing in a 1980s nightclub, and fake footage of the then UK Labour leader Keir Starmer abusing party staff.

Tech industry concerns

The tech industry says it supports the quest to make deep fakes visible but fears the rules will be interpreted too broadly and overwhelm internet users with banners and labels. The Computer and Communications Industry Association argues that EU guidelines published in July have expanded the definition of a deep fake far beyond the 2024 AI Act.

According to CCIA Europe's AI policy lead, Boniface de Champris, "The label was meant to flag deceptive content. That distinction has been removed, so now almost everything gets labelled – a landscape in an advert is the same as a manipulated political speech. Like cookie banners, once labels are everywhere, users stop noticing them. That doesn't protect anyone, it just burdens commercial activity across the board."

He thinks the most visible change for the public will not be on social media, which "already labels most AI content" but "in areas where AI is already used at scale but people don't know it – advertising, film, publishing." "Expect a lot more labels in sectors not usually associated with AI, and the burden will fall hardest on those least versed in AI regulation," De Champris said.

Actions of major tech companies

Some of the world's largest tech companies already have policies to inform users about AI-generated content. For example, TikTok requires creators to label realistic AI-generated images, audio, and video, and says it has helped label more than 3 billion pieces of content.

Google launched a tool called SynthID in 2023, which enables users to check if an image is AI-generated. The company says it has put an invisible digital watermark, which enables identification, on more than 100 billion images and 60,000 years' worth of audio.

Google and Meta, which owns Facebook and Instagram, have signed a voluntary code of practice intended to help companies comply with the EU's AI transparency rules. The European Commission said more than 180 organizations had signed the code. Signing the code is seen by regulators as a sign of good intent, while non-signatories must show they are meeting the rules in other ways.

Meta launched policies in 2024 to help people identify AI-generated photo-realistic images. It says it has been developing industry-wide technical standards to identify AI audio and video.

Announcing Meta's intention to sign the EU code of practice earlier this week [28 July], vice president for public policy in Europe, Markus Reinisch, said: "We must avoid a situation where online content is subject to a growing array of different labels and disclosures that end up overwhelming people, while at the same time adding additional regulatory complexity for providers."

Lagodinsky, the EU lawmaker, said he believed the industry could find a way: "I have a deep respect for industry, but in all too many cases, they complain, and… then after things are implemented, it doesn't look that burdensome to them. And there is always a solution."

The transparency rules are part of broader enforcement of the AI Act.