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Mandatory AI Content Labeling Takes Effect on August 2, 2026: Who Will Be Affected?

E-commerce platforms are proactively preparing for significant changes in digital content regulations. One prominent platform is already sending notifications to its users, advising them to get ready for a new tool designed to label AI-generated images in product listings. This initiative directly stems from upcoming legal changes set to transform how artificial intelligence (AI) content is presented online.

The EU AI Act: A New Era of Transparency

On August 2, 2026, the European Union’s Artificial Intelligence Act (AI Act) will come into full effect, introducing groundbreaking transparency rules for AI-generated content across the internet. These regulations are not limited to large online marketplaces; they will impact a wide array of users and platforms. The core objective of the new law isn’t to prohibit the use of AI but to enforce transparency, ensuring consumers can distinguish between human-created and AI-assisted or generated content.

This means anyone publishing an image that has been generated or significantly altered using AI, in a manner defined by the AI Act, will be required to inform their audience. The goal is for users to be able to assess whether an image or video is authentic from their very first interaction with it. This directly addresses the authenticity dilemma in the digital age, where distinguishing real from synthetic content is increasingly challenging.

Addressing the Challenge of AI-Generated Visuals

The regulations primarily target images generated or modified by AI that could be mistaken for authentic content, often referred to as “deepfakes.” According to preliminary information from various platforms, this could include scenarios such as:

• Images generated from scratch: For instance, product visualizations created entirely by AI for items that don’t physically exist yet, perhaps custom-made products.
• Real product photos with AI-generated backgrounds: Where a genuine product is placed in an artificial, AI-created setting.
• Virtual models: AI-generated characters or avatars used to showcase products.

For some time, e-commerce platforms and online marketplaces have grappled with the proliferation of AI-generated graphics. This challenge has been observed across various sectors, from online fashion resale platforms to property listings and global shopping sites, highlighting a widespread issue of authentic content verification.

When is AI Content Labeling Required?

It’s crucial to differentiate between ordinary AI assistance and content that is realistically fabricated or substantially altered. Simple photo edits—like cropping, adjusting brightness, or correcting colors—do not typically trigger the labeling requirement. The rules focus on AI-driven changes that could deceive a viewer.

However, if an image, sound, or video is generated or manipulated by AI to resemble existing people, objects, places, entities, or events, and could plausibly be mistaken for authentic, then labeling becomes mandatory. The current sophistication of image generation technology makes it increasingly difficult to discern genuine photographs from AI-produced visuals. This also extends to how AI can contribute to fake news and disinformation, underscoring the urgency of these regulations.

The same principle applies to text. Using AI for basic tasks like spell-checking, shortening, translating, or improving the style of a text usually doesn’t require labeling, especially if the content undergoes human editorial review and a person takes responsibility for its accuracy. Nevertheless, the obligation arises when content of public importance—such as information about elections, health, safety, or government actions—is automatically published by AI without genuine human oversight or verification.

Flexibility in Labeling: No Single “Mandatory Formula”

The AI Act does not prescribe a specific phrase or a rigid label for identifying AI-generated content. Instead, it mandates that the disclosure of artificial origin must be clear, accessible, and easily understandable to the recipient. Crucially, this information must be presented at the user’s first exposure to the content, ensuring immediate transparency.

The European Commission has developed a set of illustrative icons to help guide platforms and creators in marking AI content. These icons categorize the level of AI involvement:

• “AI was used in content creation”: For content where AI played a role in its development.
• “Content was entirely generated by artificial intelligence, with no human-created elements”: For fully synthetic content.
• “Human-created content that was partially modified by artificial intelligence”: For content where human input was enhanced or altered by AI.

Who Will the New Regulations Affect?

Starting August 2, 2026, four specific scenarios outlined in Article 50 of the AI Act will be particularly significant:

• When a user interacts with a chatbot.
• When synthetic content (text, graphics, video, audio) is published.
• When emotion recognition or biometric identification systems are used.
• When deepfakes or texts concerning public matters are created using AI.

These new regulations will impact a far broader spectrum than just “Big Tech” companies. They apply to both providers of AI systems and anyone who uses them to create and publish content. This includes:

• Generative model providers
• Online platforms and portals
• Marketing agencies
• Brands and businesses
• Influencers and social media content creators

News outlets, social media platforms, advertisers, and online retailers that utilize chatbots, text generators, image generators, or video generators will all need to ensure that AI-generated or significantly modified content is clearly labeled. Furthermore, they will be required to inform users when they are interacting with an AI system rather than a human.

Source: Europa.eu, various platform statements, industry publications. Opening photo: Gemini

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Deepak Malik

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