Deepfakes and AI-Generated Media: What Your Business Needs to Know

What Counts as a Deepfake

Under the EU AI Act, a deepfake is AI-generated or manipulated image, audio, or video content that resembles existing people, objects, places, or events and would falsely appear to be authentic. This definition is broader than you might think — it covers everything from face-swapped videos to AI-generated product photos that look like real photographs.

If your marketing team uses AI to create realistic product images, or if you use AI to generate voiceovers that sound like real people, these could fall under the deepfake disclosure rules.

Your Disclosure Obligations

If your business creates or distributes content that qualifies as a deepfake, you must clearly disclose that the content was artificially generated or manipulated. This disclosure should be visible and understandable to the average person. It should also be machine-readable where technically feasible, typically through metadata or digital watermarks.

There are limited exceptions for artistic, satirical, or fictional content where the AI generation is obvious from context. But for business communications, marketing materials, and public-facing content, the disclosure requirement is clear.

Risks for Your Business

Using deepfakes without proper disclosure can result in fines under the EU AI Act. But the risks go beyond regulatory penalties. Customers who discover they were misled by AI-generated content lose trust in your brand. Competitors could use your undisclosed AI content as ammunition. And in some jurisdictions, deepfakes may also violate consumer protection laws, data protection rules, and personality rights.

The reputational risk alone should motivate transparency. In a world where people are increasingly skeptical of online content, being upfront about AI use can actually build trust.

Best Practices for AI-Generated Content

Label all AI-generated images, videos, and audio with a clear, visible disclosure. Use metadata and watermarking tools to embed provenance information in the content. Establish internal guidelines for when and how AI-generated content can be used. Train your marketing and communications teams on these rules. And keep records of what content was AI-generated, when it was created, and how it was disclosed.

This article is for informational purposes only and does not constitute legal advice. Regulatory requirements change frequently — verify current rules with official sources. Built by Sawai Gyoseishoshi Office, Hiroshima, Japan.