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

What happened

Eurocommerce, the trade association representing major retail players like Amazon, H&M, and IKEA, is pushing back against the EU AI Act’s transparency requirements for AI-generated advertisements. It argues that AI-created images used in marketing, such as a digitally generated living room to showcase a sofa, should not be classified as deepfakes. Meanwhile, Zalando reports that 90 percent of marketing content on its platform is already AI-generated, signaling widespread adoption of AI in retail advertising.

Why it matters

The EU AI Act aims to enforce transparency around AI-driven content to prevent deception. However, Eurocommerce’s stance exposes a disconnect between regulatory definitions and practical uses of AI in retail. If AI-generated images used in advertising are lumped together with deceptive deepfakes, brands could face costly disclosure demands that may not add value but slow down marketing workflows. For retailers, the key question is whether AI-generated visuals require special labeling, which could impact how quickly and cheaply AI tools can be deployed in campaigns.

What to watch next

Keep an eye on how the EU finalizes the AI Act’s definitions and rules around AI-generated content in advertising. The outcomes will shape which uses of AI in marketing require disclosures and which do not. Retailers, platforms, and marketers will need to adjust their AI content strategies accordingly. Also watch for lobbying efforts by trade groups pushing for exemptions that protect current AI-driven marketing practices from becoming regulatory burdens.

AI Quick Briefs Editorial Desk