The Big Gap in EU AI Rules for Data Privacy

The EU AI Act now requires companies to tell users when they are speaking to a machine. This rule went into effect on August 2, 2026. It protects users from being misled about who they are talking to.

However, the law stays quiet about what happens to your data after that warning. Many founders focus only on the cost and accuracy of their tools. They often forget to check how third party providers handle the information sent through their systems.

This creates a hidden risk for businesses. If you use a foundation model to power your product, your users' data leaves your control. Founders must start asking tougher questions about where that data ends up before it is too late.