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What just changedDo you have to tell customers they are talking to AI?

4 minute read

Updated

More and more, yes. Several sets of rules now require a business to tell people when they are dealing with an AI, and more start soon. The fix is cheap: one clear sentence at the start, and an honest answer whenever someone asks.

This is a plain summary to help you ask the right questions, not legal advice. If you work in a licensed profession, check with your own lawyer.

European Union: in force since 2 August 2026

The transparency rules in Article 50 of the EU AI Act apply from 2 August 2026. An AI system that talks with people has to make clear they are dealing with an AI, unless that is already obvious.

They reach beyond Europe: they apply when your system is used by people in the EU. Fines can reach 15 million euros or 3 percent of worldwide yearly turnover, with lower caps for small companies.

Colorado: from 1 January 2027

Colorado signed HB26-1263 on 29 May 2026. From 1 January 2027, anyone running a conversational AI service open to the public must clearly disclose that it is AI. The law adds further duties aimed at protecting minors.

Utah: when asked, and up front in some professions

Utah requires a business to disclose that a customer is dealing with AI when the customer asks. In licensed professions, for high-risk conversations, the disclosure has to come up front without being asked.

California: companion chatbots

California's SB 243 covers companion chatbots, the kind built to keep up an ongoing relationship with a user. A customer service bot is a different thing, but the direction across states is the same: say what it is.

What to do, in four lines

This covers every rule above, and most of what is likely to come next.

  • Say it in the first message, or the first sentence of a call: you are talking to the AI assistant for your business.
  • Answer honestly every time someone asks whether they are talking to a person.
  • Offer an easy way to reach a person.
  • Keep a record of what the assistant says, so you can show what customers were told.

The simple rule

Disclose every time, everywhere. It costs one sentence, it keeps you covered as new rules arrive, and customers who know what they are talking to tend to ask clearer questions.

If you already run a chatbot or an AI phone line and are not sure what it says about itself, that is a short fix. Our free AI check-up looks at exactly this, along with whether its answers are right.

Still not sure which applies to you?

Fifteen minutes on a call is usually enough to settle it, and we will tell you if the answer is something we do not sell.

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FAQ

Common follow-up questions.

It can. The rules apply when your AI system is used by people in the EU, wherever your business is based.

Operators must disclose from 1 January 2027. The law was signed on 29 May 2026.

Treat it as not enough. Colorado asks for a clear and conspicuous disclosure, and the EU asks that people are informed. A sentence at the start of the conversation does both.

What puts people off is a wrong answer or being stuck with no way to reach a person. A clear line up front and a quick route to a human handle both.

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