Resources > AI Disclosure Laws Are Coming: What Marketers Need to Know

AI Disclosure Laws Are Coming: What Marketers Need to Know

by | Mar 19, 2026

Credit: Freepik

Introduction: The Rules Are Being Written Right Now

Here’s What You Need to Know

If your business uses AI to write blog posts, run chatbots, produce ad creative, or automate customer communications, this article is for you. People are demanding stricter AI regulation and law makers have taken notice. AI-generated content is no longer a legal grey area. Governments across the globe are converting transparency expectations into hard law, with enforceable deadlines, financial penalties, and cross-border reach.

Most marketers assume compliance is someone else’s problem. We’ve heard from other industry professionals: “it’s a legal team issue”, “a big-tech issue”, a “we’ll deal with it later issue”. That assumption is becoming increasingly risky. The window to prepare proactively is narrowing fast, and the penalties for being caught off-guard are significant.

This guide breaks down exactly what’s passed, what’s coming, and the practical steps every marketing team needs to take.

 

What “AI Disclosure” Actually Means

AI disclosure laws require businesses to inform people when content, decisions, or communications have been generated or significantly assisted by artificial intelligence. The obligation generally falls into two distinct layers:

  • Provider obligations: Companies that build AI tools must mark or watermark AI-generated outputs at the point of creation.
  • Deployer obligations: Businesses that use AI tools in customer-facing contexts — emails, ads, chatbots, social posts — must label content appropriately for their audiences.

For marketers, the scope is broad. Disclosure obligations now extend to:

  • Customer service chatbots and automated voice agents
  • AI-generated ad copy, email campaigns, and social media content
  • Synthetic images, video, and audio (including deepfakes)
  • AI-assisted hiring tools such as video interview analysis

The EU AI Act: The Benchmark

The European Union’s AI Act is the most comprehensive AI regulation in the world, and it sets the standard that other jurisdictions are watching and emulating.

The Act entered into force on August 1, 2024, with full transparency obligations applicable by August 2, 2026.

“The EU AI Act introduces specific disclosure obligations to ensure people are informed when they are interacting with a machine, and providers of generative AI must ensure AI-generated content is identifiable.” — Digital Marketing Institute

Key provisions marketers need to understand:

  • Under Article 50, deployers of AI systems that generate or manipulate image, audio, or video content constituting a deepfake must disclose that the content has been artificially generated or manipulated.
  • Deployers who publish AI-generated text for the purpose of informing the public on matters of public interest must also disclose this.
  • A draft Code of Practice published in December 2025 targets two groups: providers, who must mark all AI-generated content, and deployers, who must label deepfakes and public-interest text.
  • A second draft of the Code was expected by mid-March 2026, with finalization planned for June — just ahead of August enforcement.

Penalty exposure: Fines for prohibited AI practices reach up to €35 million or 7% of global annual revenue. Enforcement has been active since February 2025.

Extra-territorial reach: Any company that places AI systems on the EU market or uses AI outputs within the EU must comply — regardless of where they are established. If your business has EU customers, the EU AI Act applies to you.

U.S. Disclosure Laws: State by State

No comprehensive federal AI law exists yet in the United States. In its absence, a rapidly growing patchwork of state laws is filling the gap.

According to Stanford University’s AI Index Report 2025, at least 30 AI laws were enacted worldwide in 2023, rising to 40 in 2024. U.S. states alone passed 82 AI-related bills in 2024.

California

  • The California AI Transparency Act (SB 942) requires AI systems with more than 1 million monthly users to disclose when content has been generated or modified by AI, mandate AI detection tools, and notify users — with penalties of $5,000 per violation per day for noncompliance.
  • California also enacted SB 53, requiring large frontier AI developers to publish transparency reports and disclose risk management protocols, effective January 1, 2026.

Source: LegalNodes

Colorado

  • Colorado passed the first comprehensive state AI law in the U.S., requiring deployers of high-risk AI systems to use reasonable care to avoid algorithmic discrimination, with impact assessments, transparency disclosures, and AI decision-making documentation.
  • Implementation has been pushed to June 30, 2026.

Source: Colorado General Assembly

Utah

  • Utah requires entities offering consumer-facing generative AI in regulated professions to disclose when individuals are interacting with AI rather than a human.

Source: EU Artificial Intelligence Act

Illinois

  • Illinois requires employers to notify candidates when AI analyzes video interviews, with candidate consent required before AI-based evaluation occurs.

Source: Kirkland & Ellis LLP

Maine

  • Maine’s Chatbot Disclosure Act, effective September 24, 2025, requires businesses using AI chatbots to notify consumers that they are not interacting with a live human.

Source: European Commission

The federal wild card: A December 2025 executive order directed federal agencies to challenge state AI laws deemed inconsistent with a uniform national AI policy framework, leaving businesses uncertain about which state laws will survive legal scrutiny. Until a federal standard is established, multi-state compliance remains the safest approach.

Source: European Commission

What This Means for Marketers Day-to-Day

Disclosure obligations aren’t abstract legal concepts — they have direct operational implications for marketing teams. Here’s how they map to the most common AI-assisted marketing activities:

Marketing Activity

Jurisdictions

Required Action

AI Chatbots on Your Website

Maine, Utah, California, Colorado

Disclose AI at conversation start

AI-Written Ad Copy

California (SB 942)

Label if platform has 1M+ monthly users

AI-Generated Images / Video

EU Article 50, California

Must label deepfakes and synthetic media

AI-Written Customer Emails

EU (public interest text)

Disclose if content informs the public

AI-Assisted Hiring / Screening

Illinois, NYC Local Law 144

Notify candidates; obtain consent

AI Social Media Content

California, EU

Label AI-generated posts and creative

Disclosure obligations now apply to AI-generated content used in customer service bots, automated voice agents, marketing campaigns, deepfake content, and even election communications in some states.

 

Compliance Checklist for Marketing Teams

The good news: building a disclosure-ready workflow is achievable and doesn’t require a legal team of dozens. Here are six concrete steps to take today.

1. Map your audiences geographically

If you serve EU users or customers in California, Colorado, Utah, Illinois, or Maine, you are already in scope. Document which rules apply to which customer segments.

2. Add disclosure language to your content

Include clear labels on AI-assisted content across your website, email templates, ads, and social posts.

5. Update your chatbot flows

Ensure any AI-powered chat on your website identifies itself as non-human at the very start of interactions — not buried in a footer or terms page.

6. Document your processes

Maintain a compliance framework describing how you’ve tested, verified, and ensured compliance. Deployers must keep internal documentation of labelling practices ready for regulatory review.

7. Watch for the federal picture

Monitor whether Congress moves toward a unified national standard. A federal law could either simplify compliance or introduce new obligations that override existing state frameworks.

Why You Need to Get Ahead of The New AI Disclosure Laws

Compliance is actually a strategic opportunity. Brands that move proactively on AI disclosure will differentiate themselves as the transparency conversation reaches mainstream consumers.

In August 2025, 26 major AI providers — including Microsoft, Google, Amazon, OpenAI, and Anthropic — signed the EU’s GPAI Code of Practice. Meta’s refusal to sign placed it under heightened regulatory scrutiny. Choosing transparency is now a competitive signal, not just a legal requirement.

Source: Kantar

Three reasons to act now rather than wait:

  • Fines are already being issued. EU enforcement has been active since February 2025. Multiple U.S. state laws are currently in effect.
  • Consumer trust is the real prize. Research consistently shows that transparency about AI use increases, not decreases, consumer confidence in brands that use it responsibly.
  • Reputational risk compounds. Brands caught using undisclosed AI after high-profile enforcement actions face outsized media and social media backlash well beyond any financial penalty.

Conclusion & Next Steps

The regulatory window for voluntary action is closing. The EU AI Act’s transparency provisions take full effect in August 2026. California, Maine, Utah, Colorado, and Illinois laws are already active. And a federal standard is unlikely to be more lenient than the rules currently in place.

Marketers who embed disclosure practices into their workflows now will avoid the scramble, the fines, and the reputational exposure that comes with being caught unprepared. The brands that lead on AI transparency will own the consumer trust advantage in the years ahead.

 

Sources

EU AI Act & Code of Practice

  1. Digital Marketing Institute — EU AI Act transparency obligations & timeline
  2. EU AI Act (Official) — Full Act text, Article 50, enforcement timeline 
  3. Kirkland & Ellis LLP — First Draft Code of Practice on Transparency (December 2025) 
  4. Kirkland & Ellis LLP — EU AI Act general overview, August 2024 entry into force 
  5. Cooley LLP — EU AI Act Code of Practice on Transparency & Watermarking (December 2025 draft)

U.S. State Laws

  1. LegalNodes — California SB 942 AI Transparency Act & SB 53 
  2. Colorado General Assembly (Official) — SB24-205 Consumer Protections for Artificial Intelligence
  3. Greenberg Traurig LLP — 2026 AI Outlook, Colorado delay to June 30, 2026, Utah, California summary
  4. Cooley LLP — Colorado, Utah AI chatbot disclosure laws, state-by-state tracker 
  5. Cooley LLP — Colorado enforcement delay, Illinois AI in the workplace 
  6. Cooley LLP — December 2025 executive order, federal vs. state AI tension 

Additional Reference

  1. Stanford AI Index / Gartner — Global AI legislation count (30 laws in 2023, 40 in 2024, 82 U.S. state bills)

 

This article was researched and written with the assistance of AI. All information has been reviewed for accuracy and verified against the cited sources.