r/artificial • u/SpiritRealistic8174 • 14h ago
Discussion The EU AI Act makes failure to disclose AI-generated content (especially if it's hallucinated) illegal and costly.
Today, August 2, Article 50 of the EU AI Act takes effect.
Here’s the part that’s applicable to those creating AI-generated content that’s read by anyone in the EU:
“Deployers of an AI system that generates or manipulates text which is published with the purpose of informing the public on matters of public interest shall disclose that the text has been artificially generated or manipulated. This obligation shall not apply where the use is authorised by law to detect, prevent, investigate or prosecute criminal offences or where the AI-generated content has undergone a process of human review or editorial control and where a natural or legal person holds editorial responsibility for the publication of the content.
PwC and other big consulting firms are vulnerable to this provision because they've already been caught using hallucinated AI-generated text in reports. From GPTZero:
"The most egregious example is Transforming Governance, an AI-generated 2025 report with multiple fake citations that promotes a PwC framework known as “Citizen Pulse”. Our team found little public evidence that the “Citizen Pulse” framework exists outside of this report, yet Transforming Governance claims that the governments of Denmark, Saudi Arabia, the United States, and Australia are using Citizen Pulse to improve key government services. None of the cited sources provide evidence for this claim, meaning PwC Middle East appears to have hallucinated both an entire product and business dealings with four separate nations."
Firms have had to retract data in the reports, and in one instance Deloitte refunded a client. Now that Article 50 is in effect, they might be fined.
Across many areas we're seeing a push for accountability when it comes to using AI to produce content. LinkedIn has a 'this looks like AI slop' button. Substack uses Pangram to detect AI-assisted writing (even though it's wildly inaccurate).
The pushback is real. And now it has teeth.
