EU AI Act: Transparency Takes Centre Stage in Advertising

As you may or may not know, the EU Parliament recently approved the EU AI Act, a new law setting ground rules for Artificial Intelligence in Europe. This has been a major development for businesses, potentially even bigger than GDPR.

Here's what you need to know for the advertising industry:

The AI Act will shake things up for the advertising industry in Europe by requiring transparency around AI-generated or manipulated ads. This means:

• Potential Shift in Practices: Advertisers may need to adjust their workflow to ensure AI-generated content is properly flagged. This could involve implementing new tools or processes to track and label AI-created content.
• Labels for AI Ads: Ads created or significantly altered by AI will need clear markings, potentially using watermarks or other methods. This lets consumers know they're seeing AI-influenced content.
• The Act targets high-risk AI. Think fancy facial recognition or AI used in hiring decisions. These will need to meet extra requirements.

Overall, the Act aims to increase consumer trust and awareness in the digital advertising space. This could lead to a more ethical and transparent advertising landscape in the EU.

Get ready for the future:

There's time to get ready! While the Act comes into effect in June 2024, most regulations won't apply for another two years. Here's a breakdown of key deadlines:

• High-risk AI ban: December 2024 (6 months after enactment)
• Codes of practice: March 2025 (9 months after enactment)
• General AI rules: June 2025
• High-risk system obligations: Mid-2027

Industries most impacted include healthcare, finance, insurance, and those using critical infrastructure. By being proactive, businesses can adapt to the new regulations and ensure they're compliant with the EU AI Act.

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