When Must Advertising Agencies Label AI-Generated Content?

The transparency obligations under Article 50 of the AI Act (deepfakes and certain AI texts) apply from August 2nd, 2026. The EU has published a Code of Practice as a practical guide to implement these obligations uniformly.

The key points for you in summary:

1. Labeling obligation exists primarily in two cases:

  • Deepfakes (image/video/audio) – that is, content that appears deceptively authentic and suggests real persons, places, or events, although it was generated or manipulated using AI:
    • Fully AI-generated “real” scenes (people, environments)
    • AI models (people generated exclusively by AI)
    • AI scenes in real videos (e.g., face swapping, insertion of persons/objects)
    • Voice clones / completely AI-generated voices
  • Certain AI texts on matters of public interest, if:
    • the text is published to inform the public (news, politics, societal debates, etc.) and
    • no human editorial review/editing has taken place and no one assumes editorial responsibility.

Examples of advertising formats subject to labeling requirements:

  • Deceptively authentic AI persons or scenes in campaigns (look & feel “real footage”)
  • Spots with AI voice clones imitating real persons
  • AI-generated “information articles” on societal/political topics without human editorial review

2. Reduced labeling obligation

For content that is part of an evidently artistic, creative, satirical, or fictional work (e.g., clearly recognizable as fantasy/comic/illustration, sci-fi, etc.), labeling need not appear directly in the image/video but may instead be placed in credits or accompanying text.

3. What is typically not subject to labeling requirements in advertising?

No AI labeling under Article 50 of the AI Act is required for:

  • Retouching & image editing (Photoshop, etc.), as long as no deceptively authentic deepfake is created.
  • Texts with human editorial review, if content is checked, adapted, approved, and the agency or client assumes editorial responsibility.
  • Short copy (headlines, slogans, etc.) developed from AI suggestions but finalized by humans.
  • Auxiliary activities such as translations, grammar checks, text optimization – here AI is merely a tool; publication is carried out by humans.

4. How is correct labeling performed?

The EU icons are optional; the transparency obligation is not. The Code of Practice recommends combining the icon with a clear-text label, as this is best understood by users.

Recommended best-practice formulations:

  • Fully AI-generated real images/videos (including AI models):
    “Fully AI-generated content” (plus optionally “Fully AI-Generated” icon).
  • Realistic photos with AI furnishing, face swapping, or similar modifications:
    “Image partially edited using AI” (plus optionally “Partially AI-Modified” icon).
  • AI voices in spots:
    “Voice generated using AI” (audio disclosure at the beginning or prominently in the credits).

5. Placement of labels in visuals & spots

According to the Code of Practice:

  • Timing: Icon/label must be clearly recognizable no later than upon first perception of the content.
  • Position:
    • clearly visible, not obscured by other elements;
    • preferably embedded directly in the visual or video so that the label is retained when shared/downloaded.
  • Language & comprehensibility:
    • short, simple formulations, no technical jargon;
    • “AI” is accepted as an abbreviation and is understandable.

For audio formats (pure audio spots), a brief spoken notice at the beginning of the deepfake is provided (“This content contains an AI-generated voice” or similar).

6. Important!

AI labeling does not replace other labeling obligations (e.g., “Advertisement,” “Advertising” under media law for paid placements).

Conversely, AI labeling does not exempt from personality rights, copyright, or competition law – in particular, not from the obligation to obtain necessary consents and rights to images, voices, music, etc.

Note: This article is intended solely as general information and does not constitute legal counsel from ATTYS 05 Rechtsanwälte GmbH. This article is not a substitute for individual legal counsel. ATTYS 05 Rechtsanwälte GmbH assumes no liability of any kind for the content or accuracy of this article.