What is the EU AI transparency code? | Explained
The European Union is implementing a new transparency code under the AI Act requiring mandatory labeling of AI-generated content, such as deepfakes and manipulated text. Developers face significant fines for non-compliance, though exceptions exist for artistic works and legally authorized content.
Why it matters
This regulation sets a global precedent for AI governance and the mitigation of misinformation in digital ecosystems.
The European Union is set to make labelling of AI-generated content mandatory from August 2, in a move to ensure transparency and enable human users to distinguish manipulated content online. Falling under the purview of Article 50 of the EU Artificial Intelligence Act (AIA), which sets a framework for the use and supply of AI systems within the bloc with a risk-based categorisation, the ‘Code of Practice on Transparency of AI-Generated Content’ stipulates certain obligation for AI developers and providers to maintain the integrity of the information ecosystem, with administrative fines up to €15 million for non-compliance.
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