Under the AI Act, companies deploying AI systems must tell users when they are interacting with AI chatbots or when images, videos, audio, or text have been generated by AI. Deepfakes must be clearly labeled or embedded with watermarks or other markers to enable identification. Companies that fail to comply could face hefty fines under EU rules.

The regulations also require disclosure when AI is used for emotion recognition, biometric categorization, or to generate content related to matters of public interest without human review or editorial oversight.

AI systems already in operation have until December 2 to comply with the new rules, which provide exemptions for certain artistic, creative, satirical, or fictional works.