AI labels to be compulsory on authentic-looking content under EU rules

The EU's AI Act mandates that AI-generated images, audio, and text designed to appear authentic must be clearly labeled and digitally watermarked starting August 2, 2026, to combat misinformation and protect democracy. Companies face fines up to €15 million or 3% of global turnover for non-compliance, with exemptions for personal, artistic, satirical, and fictional content.