The EU doesn't really know what a deepfake is, and that's becoming a problem for retail

Editor's take

Eurocommerce, representing major retailers like Amazon and IKEA, is pushing for exemptions to the EU AI Act's transparency requirements for AI-generated marketing content. This advocacy stems from a disagreement over the definition of "deepfake," with the association arguing that AI-created product imagery, such as a sofa in a simulated living room, does not constitute a deepfake requiring disclosure.

This distinction is significant because it impacts how consumer protection laws will apply to the rapidly growing use of generative AI in retail advertising. If AI-generated content is not classified as a deepfake, it could bypass crucial disclosure mandates intended to inform consumers about the synthetic nature of what they are seeing, potentially affecting trust and purchasing decisions. Zalando's reported use of AI for 90% of its product imagery highlights the scale of this issue.

Future developments to monitor include how the EU specifically defines and enforces deepfake regulations within the AI Act's framework, and whether industry lobbying leads to carve-outs for commercial synthetic media. The extent to which consumers are informed about AI's role in advertising will be a key indicator of whether this exemption favors innovation or erodes transparency.