As of Aug. 2, Europe requires AI systems to identify themselves and AI-generated content to be labelled
New European Union rules requiring AI systems to disclose themselves to users and AI-generated content to be clearly labelled took effect this week, and artificial intelligence researchers say Canada should model them — and quickly.
The rules, part of the EU's sweeping AI Act, came into force on August 2, according to the European Commission. The act itself took effect in August 2024 but gave two years for the transparency obligations under Article 50 to come into force.
The new obligations apply differently depending on where a company sits in the AI supply chain, Global News reported.
Providers — companies such as OpenAI that build AI systems — must design those systems so that users are explicitly notified when they are interacting with AI rather than a human. They must also ensure that content generated or manipulated by their systems contains machine-readable marks so it can be detected as AI-created, according to the European Commission.
Deployers — the platforms and entities that use those systems — must clearly label deepfake videos, images and audio files, as well as AI-generated or manipulated text on matters of public interest. Under the rules, only deepfakes involving real and existing people, places, events or objects require labelling, Global News reported.
Deployers of AI-based emotion recognition and biometric categorization tools must also clearly inform users they are interacting with AI, according to the commission.
Optional icons to indicate AI
The European Commission has introduced a set of optional icons that platforms can use to indicate how much AI was involved in creating content. A fully AI-generated video would carry an "AI Generated" icon, while an authentic photograph with an AI-swapped face would require an "AI Modified" label, Global News explained.
Some platforms including TikTok and Instagram have already begun applying their own AI labels, and the EU rules make clear those would qualify — though the commission noted the labelling requirements themselves are not optional, even if the specific icons are.
Artistic, creative, fictional and satirical works created with AI are exempt from the labelling requirement, or face only limited disclosure obligations, according to the commission.
Non-compliance carries significant financial consequences. Global News reported that companies failing to meet the rules could face fines of up to 15 million euros ($24.2 million Canadian) or three per cent of their global annual revenues, while EU institutions and agencies risk penalties of up to 750,000 euros ($1.2 million).
Disinformation concern
Canadian AI researchers say the urgency behind the EU rules reflects a broader and accelerating problem.
"We are in an arms race around disinformation and misinformation with those actors who are using generative AI to misinform and attack the institutions of societies," Brian McQuinn, an associate professor at the University of Regina and co-director of the Centre for Artificial Intelligence, Data, and Conflict, told Global News. "If we can't [signal to people] that the generative AI material that they're using is in fact generative AI, we have a problem."
Teresa Scassa, a professor and Canada Research Chair in Information Law and Policy at the University of Ottawa, told Global News the EU rules reflect an attempt to balance competing interests.
"It's clear that they've been working to try and balance different interests — for example, not to have to create disclosure fatigue by having too many disclosures so that people stop paying attention to them," she said. "One of the challenges though is to know whether it's the right balance, since we're dealing with something that's new, and the EU is out on the forefront of that…. It'll be something I think that will be evaluated over the next couple of years to see whether the rules need to be tweaked or adjusted."
Where Canada stands
Canada has launched a public consultation on AI transparency, with Canadians invited to submit feedback until September 23. The consultation focuses on five areas where the federal government says further action may be warranted: detecting and identifying AI-generated content; ensuring people know when they are interacting with an AI system; improving public understanding of AI systems and their capabilities and limitations; tracking serious AI-related incidents; and identifying and monitoring AI agents deployed in customer service roles.
AI Minister Evan Solomon has said transparency matters "more than ever" as AI becomes increasingly embedded in everyday life, Global News reported. A spokesperson for Solomon's office told the outlet it was too early to speculate on specific policy instruments or timelines while the consultation is underway, but added: "Canada is closely examining the European Union's AI transparency requirements that took effect this week, alongside work underway through the G7, OECD and other international partners. Canada's approach will reflect Canadian needs and values and will be informed by what we hear through the consultation."
Both McQuinn and Scassa told Global News that Canada would be wise to use the EU's framework as a model — not only to accelerate drafting, but to align with what Prime Minister Mark Carney has described as a "middle powers" approach to AI governance, in which smaller jurisdictions band together to exert influence on global technology companies.
