EU

EU Digital Services Act (DSA) — AI Transparency Obligations: AI Compliance Requirements

The EU Digital Services Act (Regulation 2022/2065) has been in force for all online platforms since February 17, 2024. For businesses operating online platforms that serve EU users, Article 27 requires disclosure of the main parameters used in recommender systems (algorithmic ranking, personalization). Article 38 prohibits profiling of minors for advertising. Article 26 requires transparency about AI-targeted advertising. Very Large Online Platforms (45M+ monthly EU active users) have additional obligations.

Key Facts

Effective Date

February 17, 2024

Maximum Penalty

€1,000,000 or 6% of global annual turnover (for individual infringements); up to 1% for providing incorrect information

What Your Business Must Do

3 compliance requirements identified. Critical requirements carry the highest risk of enforcement action.

Recommender System Transparency (Article 27)

High Priority

If your online platform uses recommender systems (algorithms that rank, prioritize, or personalize content for EU users), you must provide at least one option that is not based on profiling, and clearly disclose the main parameters used in recommendations. Post this information in an easily accessible, plain-language notice on your platform.

No Profiling-Based Advertising for Minors (Article 38)

High Priority

Do not present targeted advertising based on profiling to users you know are under 18 years old. If your platform is accessed by minors, implement age verification or profiling-free advertising for all users who might be minors.

AI Advertising Transparency (Article 26)

Medium Priority

For each AI-targeted advertisement shown to EU users: identify it clearly as an advertisement, identify who paid for it, and (for targeted ads) explain the main reasons the specific user was targeted. This applies to all online advertising including AI-optimized ad delivery.

Frequently Asked Questions

Does EU Digital Services Act (DSA) — AI Transparency Obligations apply to my business?

The EU Digital Services Act (Regulation 2022/2065) has been in force for all online platforms since February 17, 2024. For businesses operating online platforms that serve EU users, Article 27 requires disclosure of the main parameters used in recomm. Use ComplianceIQ's free scanner to get a personalized assessment in under 5 minutes.

What is the penalty for non-compliance?

The maximum penalty under EU Digital Services Act (DSA) — AI Transparency Obligations is: €1,000,000 or 6% of global annual turnover (for individual infringements); up to 1% for providing incorrect information. Fines are typically scaled by company size, severity of violation, and whether violations were willful or accidental.

How do I comply with EU Digital Services Act (DSA) — AI Transparency Obligations?

The 3 requirements above cover the core obligations. The fastest path to compliance is: (1) conduct an AI risk assessment, (2) document your AI systems, (3) implement transparency disclosures where required. ComplianceIQ generates all required documents automatically.

Official Source

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32022R2065

Last updated: 2026-04-12 — verify at source before relying on this information.

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