AI-generated ads should be exempt from EU transparency rules, retail association says

The European retail association Eurocommerce is calling on the EU to exempt AI-generated advertisements from upcoming transparency regulations. The bloc's AI Act, set to take effect on August 2, mandates clear labeling for AI-generated or modified images, video, or audio content that constitutes a "deep fake."

In a letter to EU tech chief Henna Virkkunen, Eurocommerce director general Christel Delberghe argued that AI-generated ads not designed to mislead consumers should not fall under the "deep fake" definition. She cited examples like generating a living room image to showcase a sofa or enhancing product visuals for presentation purposes.

“

AI-generated ads not intended to mislead users, for example, generating an image of a living room to showcase a sofa, or enhancing product visuals for presentation purposes

Delberghe warned that applying the regulation to AI-edited or generated ads could force retailers to label a significant portion of AI-assisted content, thereby diluting the disclosure's value for consumers. Retailers like Zalando have reported cost savings of up to 90 percent in content production by using AI, while fast-fashion brands such as H&M and Zara are employing AI-generated models. The European Commission had not immediately responded to a request for comment.

“

a very large share of AI-assisted content