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Who has to label an AI ad under the EU AI Act?

Under Article 50 of the EU AI Act, the deployer labels an AI ad that counts as a deepfake, from 2 August 2026. That is the studio or agency that decides how AI is used, and the brand as well once it takes those decisions.

Kenneth Dosanjh
Co-founder / Creative Director, AI Vidia · Lecturer, Business Academy Copenhagen

Under Article 50 of the EU AI Act, the visible label on an AI ad that counts as a deep fake is the deployer's duty from 2 August 2026. The deployer is the studio or agency that decides how AI is used, and the brand too once it makes those decisions, such as choosing an AI presenter. A brand that only commissions the ad is not a deployer.

An oak desk in morning light with a wooden rubber stamp and an ink pad, a printed contract page with grey unreadable lines, a fountain pen and an upright phone showing a vertical ad frame of a plain ceramic bottle with a small blank tab in its top right corner
Image generated with AI: a stamp beside a contract and a 9:16 ad frame, with a blank tab in the corner the Code of Practice gives as an example for the AI label.
On this page8 sections
  1. 01Since when does an AI ad need a label in the EU?
  2. 02Provider or deployer: which role does each party in an ad job hold?
  3. 03A brand that only commissions the ad is not the deployer
  4. 04Which AI ads count as deep fakes?
  5. 05Does the creative exception cover an ad?
  6. 06What should the label look like?
  7. 07What does a missing label cost?
  8. 08Five lines in the agreement settle who labels

Under the EU AI Act, an ad shown in the EU that counts as a deep fake (often written deepfake), such as a realistic AI person or a product image that misleads about the real product, needs a visible or audible AI label, and that label is the deployer's duty. The deployer is the business that decides whether and how an AI system is used to make the ad. Where a studio or agency takes those decisions in production, that is the studio or agency. The brand becomes a deployer too when it takes those decisions itself, for example by choosing a synthetic presenter. The duty has applied since 2 August 2026.

The tool vendor's duty is separate. As provider, it marks the output for machines, and tools already on sale before 2 August 2026 have until 2 December 2026 to do so.

Since when does an AI ad need a label in the EU?

Since 2 August 2026. Article 113 of the AI Act, Regulation (EU) 2024/1689, reads: "It shall apply from 2 August 2026." The Commission's Article 50 FAQ, last updated on 24 July 2026, confirms that Article 50 applies from that date.

One date moved, for one duty. The Digital Omnibus on AI, Regulation (EU) 2026/1744, was published on 24 July 2026 and entered into force three days later. Its new Article 111(4) gives providers of AI systems placed on the market before 2 August 2026 until 2 December 2026 to comply with Article 50(2), the machine-readable marking duty that sits with the tool makers.

The label did not move. The FAQ says the grace period applies "only as regards the marking and detection obligation", so an ad that counts as a deep fake needs its visible label now. Content generated before 2 August 2026 "does not need to be labelled retroactively", which makes the generation date of each file worth recording.

Provider or deployer: which role does each party in an ad job hold?

Article 3(3) of the AI Act makes the provider the party that "develops an AI system or a general-purpose AI model or that has an AI system or a general-purpose AI model developed and places it on the market". In an ad job, that is the company behind the video or image model.

Article 3(4) makes the deployer the party "using an AI system under its authority". The Commission's Article 50 guidelines of 20 July 2026 read authority as "assuming responsibility over the decision to deploy the system and over the manner of the actual use of the system (including its outputs)". Decisions count. Who holds the login does not.

The FAQ names "an advertising company" as its example of a deployer that is a legal person, so the people working there are not separate deployers. A deployer "remains a deployer even if third parties (e.g. contractors, freelancers) are involved in the operation of the system on its behalf and under its responsibility and control". Paragraph 15 of the guidelines adds that one company "may fulfil more than one role concurrently", for example a brand that builds its own generation system and runs its ads through it.

Article 50 roles in an AI ad job: the typical party, its duty and the date it applies. Sources: AI Act Articles 3, 50 and 113; Digital Omnibus Article 111(4); Commission FAQ of 24 July 2026 and guidelines of 20 July 2026.
RoleTypical party in an ad jobDutyFrom when
Provider (Article 3(3))The company that makes and sells the video or image modelMark outputs in a machine-readable format so they are detectable as AI-made (Article 50(2))2 August 2026; 2 December 2026 for systems placed on the market before 2 August 2026
Deployer (Article 3(4))The studio or agency that decides whether and how AI is used in the adDisclose a deep fake with a visible or audible label, at the latest at first exposure (Article 50(4) and 50(5))2 August 2026, no delay
Deployer as wellThe brand, when it decides whether and how AI is used, for example by choosing the AI presenter (our reading of guidelines paragraphs 12 and 14)The same disclosure duty; agree in writing which deployer applies the label2 August 2026, no delay
Provider and deployerA brand or studio that builds its own generation system and uses it for adsBoth: the machine-readable mark and the visible labelThe label from 2 August 2026; the mark on the provider dates above
Not a deployerA brand that only commissions the ad and leaves the AI decisions to its supplierNo Article 50(4) duty of its own; the rules on misleading ads still applyNot applicable
Not a deployerMeta, TikTok or YouTube when they only carry the adNone as deployer; a platform's own label tool can meet the deployer's duty inside that platform only if it gives a clear and distinguishable AI labelNot applicable

A brand that only commissions the ad is not the deployer

Paragraph 14 of the guidelines answers the brand question directly. A company that "merely commissions an advertising agency to produce an advertisement, without taking decisions and exercising control over whether and how the advertising agency uses AI ... is not a deployer".

That exemption is narrow. On our reading of paragraph 14, a brand that decides the ad will use AI scenes or chooses the synthetic presenter is taking the decisions the paragraph describes, and becomes a deployer next to its supplier. If that is how your team works with its studio, plan as a deployer.

Being based outside the EU does not take a brand out of scope when it directs its ads at EU audiences. The same paragraph covers "a company established in a third country that uses an AI system to generate a deep fake of a celebrity featured in an advertisement displayed in the Union". Paragraph 13 limits this to content the company itself directs or authorises into the EU.

The label must also reach the viewer intact. Paragraph 12 says deployers in complex production and distribution chains "should take proportionate measures" so their label is displayed clearly at first exposure, "e.g., via contractual conditions with distributing partners, user experience (UX) settings and interfaces to be displayed". Between a brand and its supplier, write the split into the agreement.

Platforms sit outside the role. Paragraph 16 excludes services "whose role is limited to disseminating or transmitting AI-generated or manipulated content created by third parties", which describes Meta and TikTok when they only run your ad. Paragraph 126 adds a narrow route. Where a very large online platform or search engine gives deployers a tool that lets them label deep fakes "in compliance with Article 50(4) AI Act (i.e. a clear and distinguishable disclosure of the AI-origin)", those deployers "can rely on such tools ... within the context of the VLOP or VLOSE used". The paragraph frames this for AI built into the platform, and the deployer stays responsible for the label. Before relying on a platform setting, check that its label shows on the ad itself when people first see it.

Run one ad through the tree below to see who applies its label.

Decision treeWho applies the AI label on this ad?Answer for one ad that people in the EU will see. Built on the AI Act and the European Commission's Article 50 FAQ and guidelines, read on 21 October 2026.

Question 1

Does the ad show AI generated or AI altered images, audio or video that resemble real or plausible people, products, places or events and would pass as real?

Realistic AI presenters, AI influencers and product images that make the product look different from the real one are the Commission's deep fake examples. Talking cartoon animals and a real product on an AI backdrop that misleads no one are not.

See every path

Does the ad show AI generated or AI altered images, audio or video that resemble real or plausible people, products, places or events and would pass as real?

  • Yes

    Who decides whether and how AI is used in this ad?

    • Our own team, with an AI tool we bought

      Result: Your brand applies the label. You use the AI system under your own authority, so you are the deployer. Show a visible or audible label at the latest when people first see the ad. The tool's watermark does not count as that label. In house AI production or a studio

    • Our own team, with a generation system we built

      Result: You carry both duties. A company that builds its own generation system and uses it for its ads holds two roles at once. As provider it marks the output in a format machines can read. As deployer it adds the visible label from 2 August 2026. What Meta, Google and TikTok label

    • We and our supplier: we decided to use AI scenes or chose the AI presenter

      Result: You are both deployers, so name one in the contract. On our reading of the guidelines, deciding to use AI scenes or choosing the AI presenter is deciding how AI is used, so the brand is a deployer next to its supplier. Write into the agreement which party applies the label, on which platforms and in which file version. How AI Vidia agrees AI labels

    • Our supplier: we only commissioned the ad

      Does your agency direct the AI work and pass the production to a studio or freelancer?

      • Yes

        Result: Your agency applies the label. The agency decides how AI is used, so it is the deployer, and it stays one when a studio or freelancer runs the tools on its behalf and under its control. If the studio makes its own AI decisions, treat it as a deployer too and name one labelling party in writing. Ask for the label position in the delivery and check it in the final file before launch. Labelling, approval and rejection

      • No, the studio or agency we hired decides and produces

        Result: Your studio or agency applies the label. The supplier that decides how AI is used is the deployer, and a brand that only commissions the ad is not one. Once you start choosing AI presenters or scenes yourself, you become a deployer too, so agree in writing who labels. How production and handover work

  • No

    Result: No Article 50 label for this ad. The Commission's examples put obviously unreal characters, such as mice arguing over cheese, and a real product on an AI background that does not mislead outside the deep fake definition. The tool maker still has to mark its output for machines, and each platform's own label rules still apply. What Meta, Google and TikTok label

Meta and TikTok are not deployers when they only carry the ad. A platform's own AI label tool can meet the deployer's duty inside that app only if it shows a clear and distinguishable label, and the deployer stays responsible (guidelines, paragraph 126). Platform rules and national laws apply on top.

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Which AI ads count as deep fakes?

Article 3(60) defines a deep fake as "AI-generated or manipulated image, audio or video content that resembles existing persons, objects, places, entities or events and would falsely appear to a person to be authentic or truthful".

The Commission reads "existing" widely. The FAQ covers anything that "can plausibly exist or could have plausibly existed in reality", so a synthetic person who never lived can qualify. Paragraph 113 of the guidelines names "realistic AI-generated human avatars or personas", and paragraph 114 says the test "does not require the intention of the deployer to deceive or mislead".

The example boxes in the guidelines include four ad cases:

  • Deep fake: an "AI-generated video featuring an AI-generated depiction of a celebrity influencer in an advertising or promotional context".
  • Deep fake: "An AI-generated image of a product in advertisement or packaging that can affect the audience's perception and mislead as to the actual product appearance".
  • Not a deep fake: an AI video of "mice arguing in human language over the best type of cheese" for a cheese maker.
  • Not a deep fake: a real car "shown in an advertisement against an AI-generated background and surrounding environment as long as the ad is not likely to mislead".

Small edits sit at the low end. Paragraph 116 says "re-scaling of images applied in product advertisements or packaging is likely to have only a minor impact".

Three storyboard cards on a light table: cartoon mice arguing beside a wedge of cheese, a real silver car on a generated mountain road, and a realistic young woman holding a plain white skincare bottle toward the camera, with a small blank tab in the top right corner of the third card only
Image generated with AI: three storyboard cards modelled on the Commission's examples. Only the realistic presenter card carries the corner tab, because only that scene counts as a deep fake.

For a buyer of AI video ads, the working line is the human on screen. A realistic AI presenter, an AI influencer or an AI avatar that speaks for your brand is the case the guidelines describe, so plan the label from the brief. A generated product shot that changes how the product looks also counts, and that one is a product accuracy problem before it is a label problem.

Does the creative exception cover an ad?

Rarely in full. Article 50(4) keeps a lighter duty for evidently creative or fictional work: disclosure "in an appropriate manner that does not hamper the display or enjoyment of the work". The duty shrinks there. It does not disappear.

Paragraph 122 of the guidelines says ads containing deep fakes "might be regarded as evidently creative or fictional works in certain, specific situations, but not in others". Where a work mixes fiction with information, "the informative character should always prevail and require compliance with the standard labelling requirements".

Two of the Commission's ad examples fall outside the exception. One is an "AI-manipulated video featuring a realistic synthetic influencer testing out a sponsored real product, focused solely on displaying the product functionalities". The other is a "deep fake simulation of humans advertising a product in an AI-generated scene depicting the functional use of the product by the simulated consumers".

That covers most performance ads. A product demo, an AI ad in the style of user-generated content (UGC) or a presenter walking through features is informative by design, so plan the full label for those. Keep the lighter form for a spot that is fiction from the first frame to the last.

A label also does not make a misleading ad lawful. Paragraph 129 says labelling "does not imply that AI-generated or manipulated deep fakes that are harmful and unlawful under the applicable Union or national law (e.g. misleading advertising ...) may be generated and disseminated".

What should the label look like?

Article 50(5) sets both manner and timing: "in a clear and distinguishable manner at the latest at the time of the first interaction or exposure". The same paragraph adds that the information "shall conform to the applicable accessibility requirements". The FAQ says the label must be "understandable and perceivable by natural persons (e.g. with visible or audible labels), without need for any specific technical tools or performing dedicated actions".

The tool's watermark does not do this job. The FAQ is explicit: "deployers cannot simply rely on the machine-readable marking embedded in the content by the provider".

The Commission published the final Code of Practice on marking and labelling AI-generated content on 10 June 2026. Its Code of Practice page splits it in two: Section 1 for providers on marking, and Section 2 for deployers, with "Rules for labelling of deepfakes and AI-generated and manipulated text". Signing is voluntary, while "the transparency requirements under article 50 of the AI Act are legal obligations".

On 8 July 2026 the Commission concluded that the Code adequately covers Articles 50(2), (4) and (5), and added that adherence "does not constitute conclusive evidence of compliance". Brands sign it too. The Commission's 31 July 2026 update names Bulgari, Lenovo and Lufthansa among the Section 2 signatories.

Section 2 of the Code itself gives a specification you can put in a brief:

  • The label has, as its main visual element, the capitalised acronym "AI" in the English language (Measure 1.1).
  • It appears "in an appropriate place where no intervening overlay elements exist", and the Code gives "the top right corner of an image or video deep fake" as its example (Sub-measure 1.2.2).
  • On video it appears "at the beginning of the video as well as, where possible, at regular intervals throughout the video".
  • The Commission offers free EU icons in four variants: black, white, and each of them at 50% transparency.

The Code also keeps other law in place, "including applicable legal requirements regarding obtaining consent of the depicted persons or rightsholders". A label does not replace consent where the law requires it.

What does a missing label cost?

Up to EUR 15 million or 3% of worldwide annual turnover. Article 99(4) puts breaches of Article 50 in that tier, and for a larger company it is "whichever is higher".

Smaller companies get the lower figure. Article 99(6) gives SMEs, including start-ups, the amount or percentage "whichever thereof is lower", and the Omnibus adds Article 99(6a), which extends the same lower cap to small mid-caps.

Worked example, with made-up figures. A brand with EUR 800 million worldwide turnover faces a ceiling of EUR 24 million, because 3% of 800 million is 24 million and the higher amount applies. Assume a second brand qualifies as an SME and turns over EUR 20 million: 3% is EUR 600,000, and that lower figure is its ceiling.

Enforcement is national. The FAQ says "Compliance with the rules will mainly be enforced by national competent market surveillance authorities."

Five lines in the agreement settle who labels

Put these in the statement of work. Do it before the next brief.

  1. Who decides on AI: which party chooses the tools, the synthetic presenters and the generated scenes.
  2. Who applies the label: one named party per platform and placement, and the file version it goes on.
  3. What the label looks like: the Code's "AI" mark in a spot no overlay covers, such as the top right corner, at the start of each video and repeated where possible.
  4. Which platform tools are used: which Meta or TikTok AI label setting is switched on at upload, by whom, and whether its label shows on the ad itself at first view.
  5. Consent: written permission for any real person's face or voice, kept with the delivery record.

AI Vidia's AI governance page shows how the studio agrees the label per platform and market before delivery, and the production process shows the seven days from brief to finished files. The platform rules themselves are in what Meta, Google and TikTok label, and what to do after a rejection is in labelling, approval and rejection.

Your next step takes about 25 minutes. Open the agreement with your studio or agency, find the clause on AI or add one, and write a single sentence that names who applies the label on each platform you run.

Frequently asked questions

01Does an AI influencer in an ad need a label in the EU?
A realistic AI influencer in an ad shown in the EU needs a visible label from 2 August 2026. The Commission's guidelines list "a realistic synthetic influencer testing out a sponsored real product" and an AI-generated depiction of a celebrity influencer in an ad as deep fakes, and paragraph 113 covers realistic AI-generated avatars and personas. The deployer applies the label: the studio or agency, and the brand too if it chose the persona.
02Is a brand that only commissions an AI ad responsible for the label?
A brand that only commissions the ad and leaves every AI decision to its agency is not a deployer under the Commission's guidelines. Paragraph 14 says such a company is not a deployer. The exemption ends where the brand starts deciding whether and how AI is used, for example by choosing an AI presenter, so write down who decides and who labels.
03Do ads made before 2 August 2026 need a label now?
Content generated before 2 August 2026 does not need a label added afterwards, according to the Commission's Article 50 FAQ, which says such content "does not need to be labelled retroactively". The FAQ adds that the Commission "encourages relevant deployers to do so, where possible", which matters for older ads that are still running. Keep the generation date of each file in your delivery record, so you can show which side of the date an ad falls on.
04Does the AI tool's watermark count as the label?
A tool's watermark does not satisfy the deployer's duty. The Commission's FAQ says deployers "cannot simply rely on the machine-readable marking embedded in the content by the provider". The deployer's label must be visible or audible to people without technical tools, and it must appear at the latest when people first see the ad.
05Does the EU AI Act apply to a US brand running ads in Europe?
A brand outside the EU is covered when it deploys AI to make a deep fake for an ad displayed in the Union. Paragraph 14 of the guidelines uses that case: a company in a third country that generates a deep fake of a celebrity for an ad displayed in the EU. The same deployer rules apply, including the exemption for a brand that only commissions the ad.
06Do we have to sign the Code of Practice?
Signing the Code of Practice is voluntary for brands, studios and agencies. The Commission says adherence is voluntary while the Article 50 requirements are legal obligations, and that signing does not constitute conclusive evidence of compliance. Section 2 is open to deployers, and its label specification, an "AI" mark placed where nothing overlays it, with the top right corner as the example, makes a useful brief even if you do not sign.

How we made this article

The AI Act, the Digital Omnibus, the Commission's Article 50 FAQ (24 July 2026), its guidelines (20 July 2026) and the Code of Practice pages were read on 21 October 2026 and are quoted from those primary texts. Which party is the deployer in each case is our reading of those texts. The fine example is arithmetic on made-up turnover figures.

We research and draft with AI assistance and check figures against the sources below.

Sources

  1. 01EUR-Lex: Regulation (EU) 2024/1689, the Artificial Intelligence Act, Official Journal 12 July 2024 (Articles 3, 50, 99 and 113)
  2. 02EUR-Lex: Regulation (EU) 2026/1744, the Digital Omnibus on AI, Official Journal 24 July 2026 (Articles 111(4) and 99(6a))
  3. 03European Commission: Transparency obligations under Article 50 of the AI Act (FAQ), last updated 24 July 2026
  4. 04European Commission: Guidelines on the transparency obligations of providers and deployers of AI systems, C(2026) 5054 final, 20 July 2026
  5. 05European Commission: Guidelines on Article 50 transparency obligations, C(2026) 5054 final (PDF), 20 July 2026
  6. 06European Commission: Code of Practice on Transparency of AI-generated Content, page updated 19 October 2026
  7. 07European Commission: Code of Practice on Transparency of AI-generated Content, final text (PDF), June 2026
  8. 08European Commission: Commission publishes Code of Practice on marking and labelling of AI-generated content, 10 June 2026
  9. 09European Commission: Commission opinion on the assessment of the Code of Practice on Transparency of AI-generated Content, 9 July 2026
  10. 10European Commission: Strong backing for the Code of Practice on Transparency of AI-generated Content, 31 July 2026
  11. 11European Commission: EU icons for labelling AI-generated content, read 21 October 2026

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