What is KlarvoEngine?

KlarvoEngine is Klarvo's regulatory intelligence engine. It analyses your AI system through a 3-pass classification pipeline and produces an article-cited compliance memo with obligations, deadlines, and recommended controls — in under 60 seconds.

What is the EU AI Act?

The EU AI Act (Regulation 2024/1689) is the world's first comprehensive AI regulation. It classifies AI systems by risk level and imposes obligations on providers and deployers of AI systems operating in the EU.

Any organisation that provides or deploys AI systems affecting people in the EU — regardless of where the organisation is based. This includes websites with AI chatbots, companies using AI analytics, and businesses integrating AI models into their products.

Prohibited AI practices have been enforceable since February 2025. GPAI model obligations since August 2025. Article 50 transparency and most remaining obligations apply from August 2, 2026.

What are the penalties?

Up to €35 million or 7% of global turnover for prohibited practices. Up to €15 million or 3% for transparency and other violations. For SMEs, the penalty is whichever amount is lower.

Does Article 50 apply if my business is outside the EU?

Yes, if your AI system affects people in the EU. The AI Act has extraterritorial reach, similar to GDPR.

What if I just use basic AI spam filtering or image compression?

These are minimal risk and don't trigger Article 50 obligations. Article 50 specifically covers AI that interacts with people, generates content, or processes biometric data.

Is a privacy policy mention enough?

No. Article 50(5) requires disclosure "at the time of the first interaction or exposure" — not buried in a legal document.

What about AI accessibility overlays (accessiBe, UserWay)?

These use AI to modify your website's interface for visitors. They interact with natural persons and likely trigger Article 50(1) disclosure obligations.

Does the Digital Omnibus delay affect Article 50?

No. The Omnibus proposals may delay high-risk (Annex III) obligations to December 2027, but Article 50 transparency remains at August 2, 2026.

Overview Article 50 Transparency Prohibited Practices High-Risk AI Systems Guide for SMEs Enforcement Timeline

ARTICLE 50 ENFORCEMENT: AUGUST 2, 2026

Article 50 says you must disclose AI. Here's how.

If your website uses AI, you must tell your visitors. Here's exactly what Article 50 requires, who it applies to, and how to comply before August 2, 2026.

What Article 50 requires

Article 50 is the EU AI Act's transparency provision. It covers seven paragraphs, but for most businesses, four matter:

AI chatbots and assistants (Article 50(1))

If an AI system is designed to interact with people, users must be informed they're talking to AI — "unless this is obvious from the point of view of a reasonably well-informed person." This applies to: customer support chatbots, AI assistants, AI voice agents, any conversational AI on your website or app. Who's responsible: The provider (who built the AI system). But if you integrate a third-party model via API, you become the provider of the resulting system.

AI-generated content (Article 50(2))

AI systems that generate synthetic audio, images, video, or text must mark outputs in a machine-readable format. Providers must ensure the content is detectable as AI-generated. This applies to: AI content generators, AI image tools, text-to-speech, AI video creation. Who's responsible: The provider. They must implement watermarking or metadata embedding using standards like C2PA.

Deepfakes (Article 50(4))

Anyone who deploys AI to create or manipulate images, audio, or video that resemble real people or events must disclose this. There's a narrow exception for artistic expression, but it still requires non-intrusive disclosure. Who's responsible: The deployer (you, if you publish deepfake content).

AI-generated text on public interest topics (Article 50(4))

If you publish AI-generated text about matters of public interest, you must disclose it was AI-generated. The only exception is if a human conducted editorial review AND a named person holds editorial responsibility. Who's responsible: The deployer (the publisher).

The critical question — what about third-party AI tools?

This is where most businesses get confused. If you add a ChatGPT-powered chatbot to your website:

OpenAI (the model provider) must implement machine-readable content marking at the model level
You (integrating via API) are likely the provider of the resulting AI system — fully liable under Article 50(1) for disclosure and Article 50(2) for content marking
You are simultaneously a deployer with Article 50(4) obligations for any AI-generated content you publish

Both parties have obligations. You cannot outsource your legal liability through a vendor contract.

How to comply

For website chatbots: Display a clear notice before or at the first interaction. "You are interacting with an AI system." The notice must be clear, distinguishable, WCAG-accessible, and not buried in terms of service.

For AI-generated content: Implement machine-readable metadata or watermarks. The EU's Draft Code of Practice (published December 2025, final version expected June 2026) proposes C2PA digital signatures, interwoven watermarking, and a standardised "AI" icon.

For disclosure format: Article 50(5) requires information to be provided "in a clear and distinguishable manner at the latest at the time of the first interaction or exposure" and must conform to accessibility requirements.

The simplest way to start: Install the AI Transparency plugin → It automatically detects 1,800+ AI tools on your WordPress site and displays an Article 50-compliant transparency badge. Free, takes 30 seconds, no account needed.

KlarvoEngine identifies your Article 50 obligations

KlarvoEngine identifies which Article 50 sub-articles apply to each of your AI systems: 50(1) interaction disclosure, 50(2) content labelling, 50(3) deepfakes, 50(4) public-interest text.

Classify your systems →

WordPress sites: automatic Article 50 compliance

For WordPress sites, the free Klarvo AI Transparency plugin handles Article 50 automatically — detects 1,800+ AI tools and displays a compliance badge.

Get the free plugin →

Penalties

Article 50 violations fall under Tier 2 penalties: up to €15 million or 3% of total worldwide annual turnover, whichever is higher. For SMEs: whichever is lower.

Penalty provisions became applicable on August 2, 2025, but can only be imposed for violations occurring after the August 2, 2026 enforcement date. National competent authorities enforce Article 50 — not the EU AI Office directly.

Frequently asked questions

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