Businesses in the UK, the United States, Australia and other international markets are being encouraged to review how artificial intelligence is used across their operations following the introduction of new transparency requirements under the European Union’s AI Act.
The latest provisions of the legislation came into force on 2 August, extending obligations beyond organisations based in the EU. Companies outside Europe could also be affected if they provide products or services to customers within the bloc or use AI systems whose outputs are made available in the European market.
Industry experts say many businesses remain unaware that the rules may apply to them, particularly those using AI-powered customer service, marketing or ecommerce tools.
EU AI Act Extends Beyond European Borders
Although the AI Act is European legislation, its reach is not confined to companies headquartered within EU member states. Organisations that interact with European customers or deploy AI systems in ways covered by the legislation may also need to comply with its transparency requirements.
Mary Tamvakologos, Director of Operations at AnyBusiness, believes there is widespread misunderstanding about which organisations could fall within the scope of the new rules.
“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.”
The transparency obligations introduced on 2 August apply to certain customer-facing AI systems as well as some forms of AI-generated or manipulated content. While not every use of artificial intelligence is covered, organisations found to be within scope could face penalties of up to €15 million or 3% of annual global turnover for certain breaches.
Businesses Encouraged to Audit AI Across Customer Journeys
Rapid AI Adoption Creates Compliance Challenges
According to Tamvakologos, the rapid adoption of artificial intelligence over the past two years means many organisations may not fully understand where AI has become embedded in their customer interactions.
“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.”
The warning comes as AI-powered software becomes increasingly common across marketing, customer service and online retail, often integrated into existing platforms without extensive oversight.
Ten Areas Businesses Should Review
Customer-Facing AI Tools Under the Spotlight
AnyBusiness recommends that organisations review where artificial intelligence is currently being used, particularly in customer-facing systems. Areas identified for assessment include:
- Website chatbots, ensuring customers understand when they are communicating with AI.
- Live chat platforms that automatically switch between AI assistants and human agents.
- Customer service email tools used to generate responses to enquiries.
- AI-powered telephone answering services and virtual receptionists.
- Ecommerce recommendation engines that personalise product suggestions.
- AI-enhanced website search functions.
- AI-generated product descriptions published across online catalogues.
- Marketing images and videos created using artificial intelligence.
- Recruitment assistants communicating with job applicants.
- AI avatars and virtual presenters used in customer-facing communications.
The guidance highlights the growing role of artificial intelligence across multiple stages of the customer journey, from initial enquiries through to purchasing and post-sale support.
Transparency Seen as a Competitive Advantage
Trust Expected to Become Increasingly Important
Beyond regulatory compliance, Tamvakologos argues that businesses should view transparency around AI as an opportunity to strengthen customer trust rather than simply satisfy legal obligations.
“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.”
As businesses continue integrating AI into everyday operations, industry observers expect governance and transparency to become increasingly important components of digital strategy.
Growing Focus on Responsible AI Adoption
The introduction of the EU AI Act’s latest transparency requirements marks another step in the regulation of artificial intelligence as its use becomes more widespread across global commerce. For businesses operating internationally, understanding where AI is deployed—and whether those systems fall within the scope of European regulations—may become an essential part of risk management. Experts suggest that conducting comprehensive AI audits now could help organisations improve both regulatory preparedness and customer confidence as AI adoption continues to accelerate.
George Orwell is a writer and contributor covering politics, society, culture, and current affairs. His work focuses on providing clear analysis and thoughtful commentary on the issues shaping modern Britain and the wider world, helping readers better understand complex topics.
