Does your start-up generate content using AI, use a chatbot, or apply AI in any front-facing element of your business? The AI Act is here and it’s important to understand your obligations under it. This blog breaks through the noise and summarises the important details your start-up needs to know.
What is Article 50?
Article 50 of the AI Act establishes transparency rules related to AI application. In short, it ensures individuals are aware they are engaging with AI or content that is AI enhanced or created. Article 50 became applicable on August 2nd 2026.
What is Covered?
- Chatbots and AI agents: If a person is talking to an AI system rather than a human, they need to be told. This covers customer service bots, AI assistants on your website, and voice agents.
- AI-generated content: If your business uses AI to generate images, audio, video, or text, that content needs to be marked in a way that machines can detect. This applies to marketing images, blog content, and social media material created with AI tools.
- Emotion recognition and biometric systems: If your product uses AI to detect emotions or categorise people based on biometric data, the people affected must be informed
- Deepfakes and AI-generated public content: If AI-generated content resembles a real person, place, or event, or if it is text published on a matter of public interest, it must be labelled as artificially generated. This applies even if there was no intention to deceive anyone.
Who Does This Apply To?
Both providers (businesses that build the AI system) and deployers (businesses that use one, even if built by someone else) have obligations under Article 50. If your start-up has plugged in a third-party chatbot or AI writing tool, you are still responsible for making sure the required disclosures are in place. Using a third party AI tool does not remove your obligation to tell your users about it.
What Happens if a Start-up Doesn’t Comply?
Like GDPR laws, there are considerable fines for non-compliance. Penalties are currently capped at €15 million or 3% of worldwide annual turnover.
What Should Founders Do?
- Audit where AI touches your offering. List every chatbot, AI writing tool, image generator, or automated content system your business uses, including third-party tools.
- Check your disclosures. Does your chatbot identify itself as AI at the start of a conversation? Is AI-generated marketing content labelled?
- Talk to your vendors. If you rely on external AI tools, ask what transparency features they already provide, and what remains your responsibility as the deployer.
- Keep it simple. The rule does not require complex legal language. A short, clear statement that a user is interacting with AI is enough in most cases.
For more information on the AI Act, click here : https://artificialintelligenceact.eu/article/50
