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EU ARTIFICIAL INTELLIGENCE | LEGAL UPDATE

EU AI Act: Transparency Obligations Now in Force

The EU Artificial Intelligence Act (“AI Act”), Regulation (EU) 2024/1689, establishes a harmonised regulatory framework for artificial intelligence across the European Union.

The AI Act entered into force on 1 August 2024 and applies progressively according to a phased implementation timetable. Since 2 August 2026, a significant further part of the regulatory framework has become applicable, including the transparency obligations under Article 50 for certain AI systems.

What do the transparency obligations cover?

Article 50 introduces specific transparency requirements for providers and deployers of certain AI systems, including interactive and generative AI systems, emotion recognition and biometric categorisation systems, and certain AI-generated or manipulated content.

The applicable obligations depend on the type of AI system and on whether the relevant business acts as a provider or deployer of that system.

AI systems interacting directly with individuals

Providers of AI systems intended to interact directly with natural persons must ensure that the systems are designed and developed in such a way that the natural persons concerned are informed that they are interacting with an AI system, unless this is obvious from the point of view of a reasonably well-informed, observant and circumspect natural person, taking into account the circumstances and context of use.

For businesses providing customer-facing AI systems, including certain chatbots and other interactive AI systems, this means that the transparency of the interaction should form part of the assessment of how the technology is designed, implemented and presented to users. Businesses deploying such systems should separately assess whether their particular use of AI engages any obligations applicable to deployers under the AI Act.

AI-generated and manipulated content

Providers of AI systems generating synthetic audio, image, video or text content are subject to requirements designed to ensure that the outputs are marked in a machine-readable format and are detectable as artificially generated or manipulated, subject to the conditions and exceptions set out in the AI Act. These include limited exceptions where the AI system performs an assistive function for standard editing or does not substantially alter the input data provided by the deployer or its semantics.

A limited transitional period applies to providers of relevant AI systems placed on the market before 2 August 2026. In respect of those systems, compliance with the marking and detection obligation under Article 50(2) is required from 2 December 2026.

Separate disclosure obligations apply to deployers in certain circumstances, including where AI systems are used to generate or manipulate deepfakes.
The AI Act also contains disclosure requirements concerning AI-generated or manipulated text published for the purpose of informing the public on matters of public interest. This obligation does not apply where the use of the AI system is authorised by law to detect, prevent, investigate or prosecute criminal offences, or where the AI-generated content has undergone a process of human review or editorial control and where a natural or legal person holds editorial responsibility for the publication of the content.

Emotion recognition and biometric categorisation

Transparency requirements also apply to deployers of emotion recognition and biometric categorisation systems. Individuals exposed to the operation of such systems must be informed of their operation, subject to the applicable provisions of the AI Act.

The Regulation also requires the processing of personal data in connection with such systems to comply with the applicable requirements under EU data protection law.

How must the information be provided?

Where the transparency requirements under Article 50(1)–(4) apply, the relevant information must be provided to the natural persons concerned in a clear and distinguishable manner, at the latest at the time of the first interaction or exposure. The information must also comply with applicable accessibility requirements.

European Commission guidance

Ahead of the application of Article 50, the European Commission published Guidelines on 20 July 2026 to assist providers and deployers in understanding and complying with the transparency obligations.

The Guidelines address the scope of the relevant obligations and provide practical guidance concerning interactive AI systems and the marking and labelling of AI-generated content.

What should businesses be considering now?

Businesses using, providing or integrating AI systems should first identify their role under the AI Act and assess whether any of the systems they provide or deploy fall within the transparency requirements of Article 50.

Depending on the relevant system and use case, this may require consideration of:

• whether users are appropriately informed when interacting directly with an AI system;
• whether AI-generated or manipulated content is appropriately marked or disclosed where required;
• whether the business uses AI for emotion recognition or biometric categorisation; and
• whether internal processes appropriately allocate responsibility for compliance with the applicable AI Act requirements.

The assessment should be made by reference to the particular AI system, the business’s role in relation to that system and the circumstances in which it is used.

The AI Act continues to apply progressively

Article 50 forms part of a broader regulatory framework whose provisions apply according to different implementation dates.

Most rules concerning prohibited AI practices have applied since 2 February 2025, with certain subsequently introduced provisions applying from 2 December 2026, while governance provisions and obligations concerning general-purpose AI models became applicable from 2 August 2025.

Following amendments to the AI Act’s implementation timetable, the rules for high-risk AI systems in certain areas listed in Annex III are scheduled to apply from 2 December 2027, while the relevant rules for high-risk AI systems related to products covered by the Union harmonisation legislation listed in Annex I are scheduled to apply from 2 August 2028.

Businesses should therefore consider the AI Act as an evolving compliance framework rather than a single future compliance deadline.

The practical takeaway

The application of the Article 50 transparency obligations represents an important stage in the implementation of the EU AI Act.

For businesses providing or deploying AI systems, the immediate question is not simply whether AI is being used, but how it is being used, the role of the business under the Regulation and whether that particular use engages an applicable transparency obligation.

Businesses should therefore map their relevant AI systems and use cases, identify their regulatory role and assess the transparency and disclosure requirements that already apply, while continuing to prepare for the remaining stages of the AI Act’s implementation.

Mylonas Law advises businesses and corporate groups on corporate and commercial law, regulatory compliance, technology-related matters and cross-border business activities in Cyprus and the European Union.

This publication is intended for general information purposes only and does not constitute legal advice. The application of the AI Act should be assessed by reference to the particular AI system, the role of the relevant business and the circumstances in which the system is provided or used.