Business & Technology
EU AI labelling rules pose retail risk for UK firms
Photoroom has warned that new European Union rules will require businesses to label AI-generated content or face fines, affecting online retail and digital image workflows.
The changes stem from Article 50 of the EU AI Act, which requires AI-generated or manipulated content to be clearly identifiable. The measure introduces mandatory disclosure rules for synthetic visuals and other altered content used in commercial settings, with penalties of up to £13 million or 3% of global turnover for non-compliance.
This creates a new compliance issue for UK businesses trading across European markets. While AI use has spread quickly across British business and consumer settings, the UK does not yet have an equivalent mandatory labelling regime for AI-generated material, creating a gap between domestic practice and EU obligations.
Photoroom, which offers AI-based photo-editing tools, said the issue is becoming more urgent as AI-generated images become more common in marketplaces and eCommerce. The company has more than 300 million users worldwide and processes more than seven billion images a year.
Research it cited suggests the broader shift is already well advanced. McKinsey data shows that 88% of organisations now use AI in at least one business function, while Ofcom reported that 31% of UK adults have used generative AI tools, up from 23% a year earlier.
Use has also risen sharply on consumer platforms. ChatGPT recorded 1.8 billion UK visits in the first eight months of 2025, according to figures referenced by Photoroom, underlining how quickly generative AI tools have become part of routine use.
Retail impact
The practical challenge for retailers and marketplaces is deciding how to distinguish between ordinary image enhancement and content that could be classed as synthetic or manipulated. Product photography has long involved some editing, but AI tools now make it easier to alter backgrounds, lighting, shadows and entire scenes, raising questions about when an image shifts from polished to potentially misleading.
Businesses selling across the EU may therefore need to review how product images are created, stored and presented to customers. Visible labels and technical markers are among the disclosure methods expected under the new framework, meaning compliance will extend beyond legal teams to marketing, eCommerce operations and digital production systems.
For platforms handling large volumes of listings, the burden could be significant. Companies using AI-generated product imagery at scale may need systems to track whether images are fully synthetic, substantially altered or only lightly edited, especially when those images influence buying decisions.
Matt Rouif, Chief Executive of Photoroom, said the rules mark a broader shift in how AI content will be treated in business. “As adoption accelerates, the challenge is no longer whether businesses use AI, but how transparent they are about it, with increasing pressure to clearly distinguish between real, enhanced and synthetic content,” he said.
The issue carries commercial as well as legal consequences. Online shoppers already rely heavily on product images to judge quality, fit and authenticity, and stricter disclosure standards could push sellers to be more explicit about how visuals were created.
Operational shift
Businesses will need to rethink how AI-generated visuals are produced, tracked and presented, according to Photoroom. That could mean changes to internal approval processes, metadata handling, marketplace policies and customer-facing disclosures, particularly for companies with cross-border operations.
Photoroom said it supports brands and marketplaces in producing consistent product imagery, and that clearer labelling rules will bring greater scrutiny to those workflows. For many businesses, the compliance task is likely to involve balancing the speed and cost savings of AI tools against the risk of regulatory penalties and customer mistrust.
Rouif said transparency is moving to the centre of the debate around AI-generated visuals. “This introduces enforceable transparency requirements for the first time, creating material legal and operational risk for businesses using AI at scale,” he said.
South Oxfordshire District Council’s Cabinet will consider a targeted, one-off reduction in business rates in July, aimed at easing pressure on pubs across the district.
The move follows growing concern that many venues are struggling with rising costs despite their importance as community hubs, rural assets and employers.
Cllr Pieter-Paul Barker, Cabinet Member for Finance and Property Assets, said: “Everyone knows that pubs are experiencing significant financial pressures.
“These venues play an important role in the economy and are vital for ensuring a thriving local community.
“We’re carefully considering how best to provide targeted support for pubs in South Oxfordshire which will both help to strengthen our local and rural economy and safeguard employment in our hospitality sector.”
Council leader Cllr Maggie Filipova-Rivers said: “While this support can’t fix everything, it’s a step in the right direction.
“We’re staying focused on collaborating with our local pubs and partners to provide the practical support and guidance they need right now.”
Details of the proposed business rates support are set out in a report to cabinet on July 2, when a decision is due to be made.
The popular shopping centre in Oxford’s Queen Street already has an exciting mix of shops on offer, from first-class dining options to familiar high street favourites and world-renowned brands.
Now, the Westgate has welcomed the latest addition to its retail offering, as David Clulow opticians opened on Friday, June 26.
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The eye health specialist store showcases the brand’s modernised retail format, with state-of-the-art testing rooms and improved accessibility.
It’s broad product range also includes designer frames from the likes of Chanel, Prada and Ray-Ban.
The store is the latest edition to David Clulow’s store collection which is hosted in nearly 30 cities and shopping centres across the UK.
The introduction of the new shop is the latest in a long line of recent Westgate comings and goings in recent months.
Shoe chain Russell & Bromley has departed its ground-floor store, leaving the unit empty, after the brand fell into administration.
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Similarly, Claire’s has also closed at the Westgate after the beauty and accessory brand also collapsed into administration.
Last month, the new Lego store opened on the ground floor of the centre, welcoming queues of shoppers at its grand opening event.
Oliver Bonas also recently moved from its home on the ground floor to a much larger unit on the middle floor, near the Queen Street and Bonn Square entrance.
The scheme, designed to support attendance at Armed Forces Day events, will be in effect across the UK on June 27 and June 28.
It applies to all Stagecoach services except those operated by Megabus, Transport for London and the Bee Network.
To access free travel, serving military should wear uniform or present a valid military ID card, and veterans should present a veteran’s badge or military medal.
Martin Gibbon, managing director of Stagecoach West, said: “Our Armed Forces have given so much to protect our country, and offering free travel over this weekend is just a small gesture of our immense gratitude.
“We want to make it as easy as possible for our service people, past and present, to attend local events and celebrate with their communities.”
Stagecoach’s ongoing support for the military community includes similar free travel schemes on Remembrance Day and Remembrance Sunday.
The company’s Veterans Network also offers a platform for veterans and service families within the business to connect and shape a more supportive workplace.
Stagecoach was awarded the Armed Forces Covenant Gold Award in 2024 in recognition of its commitment to supporting the military community.
Mr Gibbon said: “Through our Veterans Network, we are dedicated to ensuring Stagecoach remains a deeply supportive environment for the military community, both as passengers and as valued colleagues.”
Stagecoach has backed the Armed Forces Covenant since 2015.
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