EU AI Act tightens transparency: chatbots must tell users they're AI from the first interaction
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The EU has begun enforcing AI Act transparency rules requiring AI systems (including chatbots and agents) to disclose they are machines and label deepfakes, with penalties up to €35M or 7% of global turnover and extraterritorial reach to any AI serving EU users. This raises compliance and operational risk for AI platform providers and any EU-facing automated support or trading agents, though high-risk AI obligations were deferred to late 2027.
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The European Union has started enforcing key transparency provisions of its AI Act, requiring chatbots, voice assistants and other AI agents to clearly disclose that they are machines from the first user interaction. Deepfakes and other AI-generated media must also carry clear labels.
Regulators can fine violations by as much as €35 million or 7% of global turnover. The rules apply to any company whose AI systems reach users in the EU, regardless of where the firm is headquartered, capturing use cases such as crypto trading bots and automated customer-support agents.
At the same time, the most demanding requirements have been deferred. A last-minute change pushed the rollout of high-risk AI rules covering areas such as hiring, credit decisions and policing to late 2027.
