Businesses in the UK, US, Australia and other markets are being urged to review the artificial intelligence tools they use after new transparency obligations under the European Union’s AI Act came into force on 2 August.
Although the legislation is European, it is not limited to businesses based in Europe. Organisations outside the EU could also be affected if they offer products or services to people in the EU or operate AI systems whose outputs are used within the bloc.
Mary Tamvakologos, Director of Operations at AnyBusiness, says many businesses wrongly assume the legislation only applies to technology companies or organisations headquartered in Europe.
“One of the biggest misconceptions is that these rules only matter if you’re based in the EU. That’s simply not the case. If your business sells into Europe, has European customers or uses AI to interact with people in the EU, it’s worth understanding whether these transparency requirements could apply to you.”
From 2 August, transparency obligations under the EU AI Act apply to certain customer-facing AI systems and some AI-generated or manipulated content. While the rules do not apply to every use of artificial intelligence, businesses found to be within scope could face fines of up to €15 million or 3 per cent of annual global turnover for certain breaches.
Tamvakologos, believes the new rules should prompt businesses to understand exactly where artificial intelligence is appearing across their customer journey.
“Over the last two years, businesses have adopted AI at an incredible pace. Chatbots, AI-generated marketing content, virtual assistants and automated customer support have quietly become part of everyday business. Now that these transparency requirements are in force, businesses should be taking stock of where AI appears across their customer journey.
Many business owners couldn’t confidently tell you everywhere AI is being used across their own website. You can’t review your compliance if you don’t know where AI exists in the first place.”
10 Places Every Business Should Check Now
- Website chatbots: Can customers clearly understand when they’re interacting with AI?
- Live chat software: Many platforms automatically switch between AI and human agents during conversations.
- Customer service email assistants: AI is increasingly being used to draft responses to customer enquiries.
- AI phone answering services: Virtual receptionists and booking assistants are becoming increasingly common.
- Ecommerce product recommendations: Many online retailers use AI to personalise the shopping experience.
- Website search functions: Search bars increasingly use AI to understand natural language queries.
- AI-generated product descriptions: Retailers are using AI to create catalogue content at scale.
- Marketing images and videos: Businesses should review where AI-generated visuals are used in advertising and social media.
- Recruitment assistants: AI is increasingly being used to communicate with job applicants during the hiring process.
- AI avatars and virtual presenters: Businesses using synthetic presenters or AI-generated people in customer-facing content should review how they are presented.
Tamvakologos says businesses should see the legislation as more than just another compliance exercise.
“Customers are becoming increasingly comfortable interacting with AI, but they also expect transparency. Being open about where AI is being used helps build trust and avoids confusion. Even if your business ultimately isn’t covered by these specific obligations, carrying out an AI audit is worthwhile. Most organisations will discover AI is embedded in far more places than they realised.
With AI now becoming a standard feature across marketing, ecommerce and customer service, reviewing where AI appears across your website and customer journey should become just as routine as checking your site’s security, accessibility and performance.”
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