The European Union has taken another significant step in regulating artificial intelligence, with a new voluntary Code of Practice on Transparency of AI-generated Content, designed to help businesses comply with the AI Act’s transparency requirements, which came into force on 2 August.
While the code itself is voluntary, the transparency obligations under the AI Act are legally binding for organisations developing and deploying AI systems across the EU.
AI transparency and adland
For brands, agencies and marketers increasingly relying on generative AI to create content, personalise campaigns and engage consumers, the guidance signals a shift towards greater accountability in how AI is used.
The new EU code encourages providers of AI systems to embed machine-readable markers into AI-generated content, making it easier for platforms and other technologies to identify material created or manipulated by artificial intelligence.
It also introduces a set of voluntary AI icons that organisations can use to indicate when content has been created using AI.
For advertisers, the biggest impact is likely to be around transparency rather than creativity. AI-generated or AI-manipulated images, audio and video that could be mistaken for authentic content, commonly known as deepfakes, will need to be clearly labelled.
The rules are designed to build consumer trust while helping to combat misinformation and deceptive content.
Many marketers are already using AI tools to generate copy, visuals and campaign ideas, but the regulations make it clear that human oversight remains essential. Content that has been meaningfully reviewed and published under editorial responsibility is treated differently from fully automated output, reinforcing the importance of keeping people involved in creative and publishing decisions.
The guidance also highlights a broader challenge for brands: AI is only as reliable as the data that powers it.
Debbie Oates, Director of Customer Engagement at Experian Marketing Services, said: “As AI becomes increasingly embedded across marketing, recent regulation is placing greater emphasis on governance, transparency and accountability.
“But these principles depend on strong data foundations. Trusted, high-quality data and unified consumer identities are essential for marketers to have confidence in AI-enabled decisions. Organisations need to understand where their data has come from, how it was collected and how it connects to real people, rather than assumptions, hallucinations, or inaccuracies.
“As marketers increasingly adopt AI to power targeting, personalisation and customer engagement, robust data foundations will be critical to delivering better customer experiences, stronger performance and greater ROI, whilst meeting growing expectations for responsible use of AI.”
For the advertising industry, the message is clear. AI will continue to transform creativity and customer engagement, but success will increasingly depend on transparency, robust governance and trusted data.
As regulatory scrutiny grows, organisations that can demonstrate responsible AI practices are likely to be better placed to earn consumer confidence and maximise the technology’s long-term potential.