AI and Your Privacy Policy: What Every Website Owner Must Know in 2026
Artificial intelligence is everywhere in 2026. Websites use AI chatbots for customer support, AI-generated content for blogs, AI-powered recommendations for products, and tools like ChatGPT and Google Gemini for everything from writing to coding. But here's the catch: your privacy policy probably doesn't cover any of this.
With the EU AI Act reaching full enforcement in August 2026 and new US state AI laws taking effect, website owners face a critical compliance gap. If you use any AI tool on your website — even indirectly — you likely need to update your legal policies.
The EU AI Act: The World's First Comprehensive AI Law
The European Union's AI Act introduces a risk-based framework. Full enforcement begins August 2, 2026. If your website serves users in the EU, you must comply:
- AI transparency: Clearly inform users when they interact with an AI system.
- AI-generated content: Disclose use of AI-generated text, images, or videos.
- Data processing: AI systems processing personal data must comply with both the EU AI Act and GDPR.
- Risk assessments: High-risk AI systems require documented risk management.
Penalties: Up to €35 million or 7% of global annual turnover.
New US State AI Laws
- California (2026): Transparency in automated decision-making, AI chatbot disclosure.
- Colorado AI Act (June 2026): Algorithmic discrimination impact assessments.
- New York (2026): Disclosure of synthetic performers in advertising.
What Your Privacy Policy Must Include About AI
Your privacy policy should now cover: AI System Disclosure, Data Collection by AI Systems, Automated Decision-Making rights, Third-Party AI Services, and AI-Generated Content Disclosure.
5 Steps to Update Your Privacy Policy for AI
- Step 1: Audit your AI usage.
- Step 2: Review vendor agreements and DPAs.
- Step 3: Update your privacy policy with AI sections.
- Step 4: Add user-facing AI notices.
- Step 5: Review regularly (quarterly minimum).