EU AI Transparency Code

Syllabus: GS2/Governance

Context

• From August 2, the EU mandates labels for AI-generated content to boost transparency online.

About

• Aim: To ensure transparency and enable human users to distinguish manipulated content online. 
• It falls under the purview of Article 50 of the EU Artificial Intelligence Act (AIA).
  • This Act sets a framework for the use and supply of AI systems within the bloc with a risk-based categorisation.
  • The ‘Code of Practice on Transparency of AI-Generated Content’ stipulates certain obligations for AI developers and providers to maintain the integrity of the information ecosystem.

Major Highlights

• Scope of Labeling the Content: Two broad categories of online content: deepfakes and manipulated text. 
  • Deepfakes refer to images, audio, or video resembling existing persons, places, or events that are generated (or manipulated) with AI and would appear to a human user as authentic. 
  • Manipulated text includes that published to pass information to the public that has not undergone human review. 
  • The code requires AI system developers and content providers to display prominent, distinguishable signs that such products are artificial.
• Exceptions Under the Code: Deepfakes that are part of products that are evidently artistic, satirical, or fictional.
  • Content authorised by law to detect, prevent, investigate, or prosecute criminal offences.
  • AI-generated text that has undergone human review or is under editorial control with a legally liable person holding responsibility for it.
• Labeling of the Content: The EU has listed out three kinds of icons: 
  • a basic ‘AI’ icon if the technology is merely involved in the creation of a product; 
  • an ‘AI generated’ icon for those entirely produced by the technology with no human element involved except prompts; 
  • and an ‘AI modified’ icon for pre-existing, human-made content that has undergone manipulation with AI tools.

How the Code Differs from India?

• The Ministry of Electronics and Information Technology, in 2026, notified an amendment to the IT Rules, 2021, that required users and social media platforms to label synthetically generated information (SGI) prominently for users to see.
  • The EU code requires developers of AI systems to include the label, India puts focus on social media, with the onus on users for the disclosure while relying on the platforms to enforce it. 
• EU code seeks to bring about accountability from AI systems to improve responsible content generation.
  • India has sought to regulate the final product with provisions for platforms to take down content that goes against the IT Rules. 
• EU has laid down specific exemptions for creative content and put trust on human review, Indian rules are more generic and don’t provide such leeway.

Conclusion

• As AI tools become a part of how people build, imagine, and share, it’s important that people can understand where content comes from and interpret it with confidence.

Source: TH