EU announces new rules on AI transparency

**Imran Shaikh** (0:00)
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**SPEAKER_2** (3:12)
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**Imran Shaikh** (3:40)
The European Union has announced that its new AI transparency rules are now in effect and enforceable across the block as of August 2nd. Article 50 of the AI Act requires content publishers to mark and label certain types of AI-generated content, as well as informing users when they are interacting with an AI chatbot or agent rather than a real person. These obligations are intended to foster trust and integrity in the information ecosystem. The European Commission wrote in its new guidelines, continuing, people should know when they are interacting with AI or exposed to AI-generated content. This will help them make informed decisions, calibrate their trust and reliance on AI, and avoid misinformation or deception. The new rules require an AI mark if machines are assisted in the creation of authentic-looking deepfake content, image, audio, video, or published text. If the image, audio, video, or text is generated fully by AI, it must carry an AI-generated label. For the latter, regulators cite examples like fully AI-generated deepfake videos with politicians or fictional events, full AI-composed music or art, or AI-generated news summaries. Other types of AI must also be labeled, like models that recognize your emotions or process biometric data. The goal is simple. Whenever AI plays a vital role, you are entitled to know, the European Commission said in a video explainer. The Commission will oversee providers of general-purpose AI models as well. These organizations will be required to document information, publish training data summaries, and implement copyright policies, with non-compliance subject to enforcement by national authorities. The new law has some teeth, with fines up to 15 million euros, or 3% of global annual revenue for companies, and 750,000 euros for EU institutions, bodies, and agencies. Proportionality will be taken into account for small and medium-sized companies and small mid-cap companies. The rules exempt personal content, like group chats, along with evidently artistic, satirical, and fictional works. The new rules make Europe the most prominent regulator of AI technology. They have drawn criticism from the industry, which has argued that the rules are an undue burden, which will slow innovation. However, Europe's tech regulators stated that the rules will simplify development for AI providers by creating a single market with harmonized rules. It also addresses potential risks to people's health, safety, and fundamental rights, while safeguarding democracy and the rule of law. The European Commission wrote, continuing, ensuring its effective implementation is now a key priority for the Commission.