Businesses hoping to operate in the EU must now disclose when customers interact with AI and whether content is AI-generated.

On August 2, the EU began enforcing key transparency provisions of the EU AI Act. Although some parts of the Act have been delayed,Article 50requires companies to inform users when they are interacting with AI, label AI-generated synthetic content, disclose the use of emotion recognition and biometric classification, and label deepfakes and AI-generated content of public interest.

On the same day, the EU AI Office, the body responsible for enforcing the Act, was officially established.

Experts told CX Dive that the EU AI Act's provisions are an opportunity to build consumer trust through transparency and to revise AI governance frameworks.

"Organizations and customer experience (CX) leaders should not view this as just another regulatory requirement," Mahadevan Meikum Perumal, Vice President of Delivery and Customer Success for EMEA at TTEC Digital, told CX Dive. "That would be a mistake. In my view, this is an opportunity."

The EU AI Act provides consumers with what they clearly want: transparency.

"In the face of these transparency requirements, I've been telling companies I speak with: 'Forget the regulators. Over the past 24 months, consumer data across regions has been very clear. Consumers want to know when they are interacting with AI,'" Enza Iannopollo, Principal Analyst at Forrester, told CX Dive. "In nearly every market we surveyed, more than 70% of consumers expressed this need."

Building AI systems with a customer focus

Perumal believes these regulations are also an opportunity to build AI governance centered on the customer. This starts with taking stock of deployed AI systems.

"The key is to first take stock of your systems to meet the August 2 deadline," Perumal told CX Dive. "Many organizations don't realize how much AI is embedded within them."

Perumal encourages CX leaders to work closely with Chief Information Officers (CIOs), Chief Technology Officers (CTOs), and Chief Data Officers, and to maintain ongoing communication.

"The wrong approach is to confine this to a legal or IT issue," Perumal said. "What we often see is it being framed as CX versus legal. If anything, it's an organization-wide initiative."

As companies deploy more AI applications, compliance with the EU AI Act will be an ongoing process.

"In many cases, AI innovation doesn't stand still; it keeps evolving," Perumal said. "Making systems compliant is the beginning of the journey, not the end. The key is to establish governance mechanisms and continually revisit governance."

What consumers can expect

On or after August 2, when EU consumers interact with AI chatbots or other AI applications, they can expect to see more communications or prompts informing them that they are interacting with AI.

Similar to the EU's General Data Protection Regulation (GDPR), how companies disclose is both an experience challenge and a legal and technical one. Clear, unobtrusive disclosures can build trust, while unhelpful or intrusive ones can cause confusion.

Not all early transparency efforts by companies will go smoothly.

"I expect some implementations to miss the mark in terms of experience," Iannopollo said. "You may encounter more banners or elements that feel slightly more intrusive than you're used to, but I think companies will gradually get better at refining their communication strategies."

Ultimately, Iannopollo expects companies to display more symbols indicating AI.

Building trust through responsible governance

Forrester research shows that when companies deploy AI transparently, consumer trust in AI increases.

"Transparency is the first step in making people feel more comfortable, helping them become more familiar with AI, and understanding the trade-offs involved, which I think is fundamental," Iannopollo said.

A survey by Genesys last year found that four out of five consumers want companies todeploy AI with strong guardrails, because they don't trust the technology. But when consumers know thathuman agents are availableor involved, trust increases. GoodAI governance also builds trust, because successful AI deployments are more likely to be used again.

Once CX leaders have addressed regulatory issues, they should use these provisions as an opportunity to understand their customers, Iannopollo said.

"What I would really do is look at the customer base I serve and start to understand: How do they feel about the way I present AI? Is it making their experience better or worse?"