EU AI Act transparency rules take effect — with fines up to €15M or 3% of turnover
From August 2, providers and deployers of certain AI systems must meet new disclosure obligations under Article 50, following European Commission guidelines adopted in July.
The EU AI Act's transparency obligations became enforceable on August 2, requiring providers and deployers of covered AI systems to meet disclosure rules laid out in Article 50 — covering things like clearly labeling AI-generated content and disclosing when users are interacting with a chatbot rather than a person.
The European Commission adopted formal guidelines on the obligations on July 20, giving companies a narrow runway to adjust before enforcement began. Penalties are steep even by EU standards: up to €15 million or 3% of a company's worldwide annual turnover, whichever is higher.
It's the AI Act's most consequential compliance deadline since general-purpose model obligations kicked in the previous year, and the first one that reaches deployers — not just the labs building frontier models — putting real obligations on any company shipping an AI-powered product to EU users.