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AI Transparency Rule Shouldn’t Apply to Ads, EU Retail Group Says

Eurocommerce, whose members include H&M and Inditex, argued AI-generated ads should be exempt from a rule requiring disclosure of AI use.
A woman in profile with binary code projected on her face.
AI transparency rule shouldn’t apply to ads, EU retail group says. (Pexels)

Eurocommerce, the European retail association whose members include Amazon, H&M, Inditex, and Ikea, is asking EU tech chief Henna Virkkunen to exempt AI-generated advertisements from the bloc’s new regulation requiring disclosure of AI use.

The ​European ⁠Union AI Act, which enters into force on August ⁠2, requires companies to clearly label where artificial intelligence has been used to generate or modify images, video ​or audio content “constituting a deep fake”.

In a letter sent to Virkkunen on Thursday and seen by Reuters on Friday, the ​industry group’s director general Christel Delberghe ⁠said AI-generated ads not meant to mislead users should not ⁠be included under the definition of “deep fake”.

The regulation should not include 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”, the letter said.

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Retailers are already ‌using AI widely to generate marketing images, with ​German ‌online retailer Zalando saying the technology has allowed it to cut ‌content production costs by 90 percent, while fast-fashion ⁠retailers ⁠H&M and Zara are using AI-generated clones of models.

Applying the regulation to AI-edited or AI-generated ads risks forcing retailers to label “a very large share of AI-assisted content”, diluting the value ​of the disclosure to consumers, Delberghe wrote.

The European Commission did not ⁠immediately reply ‌to a request for comment.

By Helen Reid

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