GERMANY Law and Practice Contributed by: Eva Nase and Kay-Uwe Neumann, POELLATH
closed when required by law or when they significantly affect the company’s business, risk profile or govern - ance. At the AI-specific level, Article 50 of the AI Act will introduce transparency duties from August 2026. These apply in situations where individuals must be informed they are interacting with AI, or where syn - thetic content is used (eg, deepfakes). Where personal data is involved, GDPR information and transparency duties may also apply. In corporate reporting, there is no dedicated AI sec - tion, but companies are required to disclose their busi - ness development, position, likely future development, and material opportunities and risks. This can include AI-related strategy, dependencies or incidents, where relevant. Similarly, under the CSRD/ESRS framework, companies must report material sustainability risks, which may include AI-related impacts on workforce, consumers or business conduct.
In capital markets, AI-related risks must be disclosed in prospectuses if they are material to the issuer or the securities (Article 16 of the Prospectus Regulation). For issuers subject to MAR, AI-related incidents may also trigger ad hoc disclosure under MAR if they qualify as inside information under Articles 7 and 17 of MAR.
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