EU Now Requires AI-Generated Content to Be Labeled and Watermarked, Backed by Millions in Fines

The EU's landmark AI Act now requires all AI-generated images, audio, and text to carry visible labels and digital watermarks, with fines reaching €15 million or 3% of global turnover for violations, though tech companies warn excessive labeling could render warnings meaningless.

• New EU rules taking effect August 2 require that artificially generated images, audio, and text designed to look authentic must be visibly labeled as AI-generated and contain a digital watermark.
• The regulations, established under the EU AI Act, aim to protect both consumers and democracy by ensuring transparency around deepfakes and AI-generated content, with fines of up to €15 million or 3% of global turnover for non-compliance.
• The tech industry, while broadly supportive of combating deceptive content, warns that overly broad guidelines risk flooding users with labels everywhere, comparing the potential outcome to ineffective cookie banners that people simply ignore.