A new phase of the European Union’s Artificial Intelligence (AI ) Act has come into force, introducing significant transparency requirements for organisations using AI technologies. While the legislation applies across all EU member states, its impact will be particularly relevant for businesses throughout Ireland, where companies are increasingly embracing AI to improve customer service, marketing, recruitment and operational efficiency.
The latest provisions require organisations to clearly disclose when customers are interacting with an AI system rather than a human. Companies using AI chatbots on their websites or customer service platforms must now ensure users are informed that they are communicating with artificial intelligence. Similarly, AI-generated images, videos and deepfakes must be clearly labelled to prevent misleading or deceptive content.
The rules also extend beyond visual media. Text created by AI for the purpose of informing the public on matters of general interest must also be identified where there has been no meaningful human editorial oversight. The aim is to improve transparency and help consumers distinguish between human-created and AI-generated content at a time when artificial intelligence is becoming increasingly sophisticated.
Barry Scannell, AI law specialist with William Fry, told RTE that the famous “Turing Test”, developed by computer scientist Alan Turing in 1950 to determine whether a machine could convincingly imitate human conversation, has effectively been surpassed. Today’s AI systems are capable of producing text, images and conversations that are often indistinguishable from those created by people, making transparency more important than ever.
For businesses across counties such as Galway, Mayo, Clare, Sligo, Roscommon and Donegal, these requirements represent more than another compliance obligation. Many SMEs have rapidly adopted AI tools for customer communications, social media marketing, proposal writing and administrative support. While these technologies can improve productivity and reduce costs, organisations must now review how AI is deployed to ensure they meet the new legal standards.
Companies operating in sectors such as tourism, hospitality, professional services and manufacturing should pay particular attention. Hotels using AI-powered booking assistants, retailers relying on automated customer support, or professional firms generating website content with AI will need to ensure appropriate disclosures are in place. Failure to comply with the AI Act could expose organisations to significant financial penalties, as well as reputational damage if customers believe they have been misled.
The new rules coincide with the establishment of Ireland’s National AI Office, which begins operations this week. The office will work alongside existing regulators to oversee compliance with the AI Act and provide a central point for public complaints and regulatory guidance.
Minister of State for AI, Niamh Smyth, has described the office as a significant milestone for Ireland’s AI ecosystem. In addition to enforcing compliance, it will support innovation through a regulatory sandbox that allows businesses and technology developers to test AI systems within a controlled environment while ensuring they meet EU safety and governance standards.
For companies in the west of Ireland, this presents both an opportunity and a responsibility. The region has seen growing investment in technology, medtech, advanced manufacturing and digital services, supported by universities, enterprise agencies and innovation hubs. A clear regulatory framework can provide greater certainty for businesses seeking to adopt AI while reassuring customers that the technology is being used responsibly.
Ultimately, the latest phase of the EU AI Act is about building trust. Businesses that are open about their use of artificial intelligence and implement robust governance practices are likely to strengthen customer confidence while positioning themselves for sustainable growth. As AI continues to transform every sector of the economy, transparency is no longer simply good practice—it is now a legal requirement.
