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EU Commission Issues New AI Transparency Guidance As 2026 Compliance Deadline Nears

by THEFUTURE.TEAM

The European Commission has published guidance to help artificial intelligence providers and deployers comply with the transparency requirements of the EU AI Act before the rules take effect on August 2, 2026.

Guidance Clarifies Transparency Rules

New guidance explains when providers and deployers must inform users that they are interacting with AI systems or viewing AI-generated or manipulated content. It also clarifies which organisations are subject to the transparency obligations set out in the AI Act.

Provider And Deployer Obligations

Providers must ensure users are informed when they are communicating with AI systems and apply machine-readable markings to AI-generated or manipulated content so it can be detected.

Deployers must disclose the use of deepfakes, AI-generated content on matters of public interest that has not undergone human review or editorial control, as well as AI systems used for emotion recognition or biometric categorisation.

Examples And Exemptions

According to the Commission, the guidance includes practical examples, explains key concepts and outlines exemptions to help organisations determine how the rules apply. Coverage extends to interactive AI systems such as chatbots, along with synthetic text and other AI-generated content.

Requirements for deepfakes and AI-generated content relating to matters of public interest are also clarified, while exemptions apply to certain AI-assisted editing functions, including spelling and grammar corrections.

Demonstrating Compliance

According to the Commission, organisations can demonstrate compliance with the AI Act by following a recognised code of practice, providing a practical method for meeting the transparency requirements.

The guidance complements the Code of Practice on Transparency of AI-generated Content, developed by independent experts with contributions from hundreds of stakeholders. Both the Commission and the AI Board said the voluntary code provides an appropriate way for providers and deployers to demonstrate compliance with the AI Act.

Next Steps

Additional guidance, the AI Act Service Desk and other support tools are being developed to help organisations prepare for the new rules.

Most provisions of the AI Act will apply from August 2, 2026, including enforcement powers for the Commission and national market surveillance authorities. AI systems placed on the market before that date must comply with marking and detection requirements from December 2, 2026.

Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

by News Editor

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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