Google announced it will globally add an information panel titled “How this ad was created” to advertisers’ ads, visible within the ad centres of Search, Discover and YouTube. The panel is designed to disclose whether generative AI was used to produce ad content. Ads created using Google’s own AI tools will be automatically labelled. In the EU, direct on-ad labelling will also apply under certain circumstances as required by the EU AI Act. However, the framework contains a notable loophole: labelling remains voluntary for ads generated with third-party AI tools, and Google currently has no means to enforce disclosure. This allows advertisers to easily evade transparency obligations if they choose to conceal the use of generative AI. For compliance and consumer trust purposes, cross-border brands are advised to proactively disclose AI-assisted content, to mitigate risks from future regulatory tightening and public backlash.