New requirements for labelling AI-generated marketing: What does Article 50 of the EU AI Act mean for asset managers?

The EU AI Act entered into force on 1 August 2024. The EU AI Act is one of the first comprehensive sets of rules regulating the development, provision and use of artificial intelligence and is intended to ensure that AI systems are used in a safe, transparent, and responsible manner.

Different rules apply in stages. From 2 August 2026, the requirements for labelling AI-generated content applied. Article 50 imposes a number of transparency obligations on providers and users of certain AI systems. One of the key requirements is that content generated or manipulated using AI, including text, images, audio and video, must be clearly labelled so that it is clear to the recipient that the content is artificially generated or manipulated.

For asset managers, this affects fund marketing materials, fact sheets, and investor communications, to the extent they are produced with AI assistance (such as Copilot). The requirements come in addition to existing marketing and disclosure regimes under the AIFM and UCITS directives,  SFDR, PRIIPS and MiFID II .

The requirement also applies to AI systems that generate synthetic content. For asset managers using generative AI to produce fund marketing material, investor presentations, social media content or robo-advice outputs, Article 50 means that the content must be labelled in a manner that is machine-readable and, where relevant, also visible to the recipient.

First, asset managers that use generative AI to produce fund marketing material must ensure that this content is clearly labelled as AI-generated. This applies regardless of whether the content is entirely AI-generated or merely substantially edited or manipulated using AI.

Second, the requirements create a new compliance obligation that asset managers should integrate into their existing workflows and processes for fund marketing and client communication production. Asset managers should establish internal guidelines for when and how AI-generated content must be labelled. This applies irrespective of whether material is produced in house or through external partners (including advertising agencies, content creators, and robo-advice platform providers) are familiar with the requirements.

Third, the requirements also impose technical obligations: Providers of AI systems must ensure technical labelling (metadata and watermarks), but asset managers that use these systems have an independent obligation to ensure that the AI-generated content is correctly labelled before it is published or provided to investors.

Breach of the transparency requirements in Article 50 can result in significant sanctions. The regulation establishes a sanctions regime under which breaches of Article 50 can result in administrative fines of up to EUR 15 million or up to 3% of the company's total global annual turnover, whichever is higher. The national supervisory authorities are responsible for enforcement.

In addition to direct fines, failure to label AI-generated content in fund marketing or investor communications can cause reputational damage for assets managers and undermine confidence among investors and distribution partners.

1. Map the use of AI in fund marketing and investor communications. 
   Asset managers should review and map the extent to which AI tools are used to generate or edit fund marketing material, fact sheets, investor presentations, performance commentary, and robo-advice outputs.
    
2. Adopt internal guidelines and processes for labelling. 
   Internal policies must allocate responsibility for when and how AI-generated content must be labelled. Integrate the labelling requirements into approval workflows.
    
3. Impose requirements on distributors and technology partners. 
   Ensure that distributors, advertising agencies, and content creators are familiar with and comply with the requirements for labelling AI-generated content. Consider including specific compliance obligations in distribution and platform agreements.
    
4. Observe the technical requirements. 
   Investigate whether the AI tools used in your fund marketing, content production and robo-advice systems support the necessary technical labelling formats (metadata and watermarks). Choose AI tools that support compliance with Article 50.
    

The Digital Omnibus on AI provides a four-month grace period (until 2 December 2026) exclusively for the machine-readable marking and technical detection requirements for generative AI systems already on the market before 2 August.