The Transparency Tax: Why Labelling AI as AI is the Only Way to Build Trust
California's new law, requiring disclosure when AI is being used in certain products and interactions, is not just another piece of legislation; it's a necessary response to a rapidly deteriorating public trust landscape.
We think it’s a fantastic, overdue move.
AI legislation
Protection for the Vulnerable
The primary benefit is protection. As AI becomes virtually indistinguishable from human output, whether generating images, writing copy, or simulating conversations, it becomes incredibly easy to mislead. Labelling AI as AI is a vital safeguard, particularly for vulnerable people, like children or the elderly, who may not have the digital literacy to spot a convincing deepfake or a manipulative chatbot.
But the need for transparency goes far beyond legal compliance or basic protection.
The Critical Trust Deficit
The core problem is simple: people are wary of what they don’t understand. The latest data confirms this pervasive scepticism and underscores the urgent need for action:
According to a 2025 global study by KPMG, only 46% of people globally are willing to trust AI systems.
Crucially, there is a public mandate for change: 70% believe national and international AI regulation is needed.
This trust deficit is the single biggest barrier to the ethical and widespread adoption of AI technology. As marketers and innovators, our goal is to show how AI can augment human life, not manipulate it. And we can’t achieve that until we achieve transparency.
Why Visibility is the Key to Acceptance
We need to make AI visibility mandatory if we want to build trust globally. Here’s why:
Establishes Ethical Boundaries: Clear labelling allows the user to judge the information source. Did a journalist write this article, or did an AI? This helps users mentally adjust their level of reliance and trust.
Future-proofs Content: For marketers and creators, transparency is the best defensive strategy. Content clearly labelled as "AI-Generated" versus "Human-Created and AI-Augmented" sets a necessary expectation. Ultimately, the market will reward brands that are honest about their AI usage, distinguishing them from those who attempt to deceive.
Drives Responsible Innovation: Legislation like California's doesn't stifle innovation; it creates a necessary ethical framework that will ultimately lead to higher consumer acceptance and more responsible optimisation of AI tools.
The era of letting AI silently run in the background is over. Transparency is the only way to safeguard the vulnerable and create a foundation of trust for the next wave of innovation.
