EU AI Act & AI Transparency Statement

CapEngage is committed to complying with global artificial intelligence governance laws, including the European Union Artificial Intelligence Act (EU AI Act — Regulation EU 2024/1689), US Federal AI Guidelines, and international ethical AI standards.

This AI Transparency Statement provides clear disclosures regarding how AI models power CapEngage features, how risk is categorized, and how synthetic content is labeled.

Under the EU AI Act risk tiering framework:

• Minimal / Low Risk: CapEngage AI features (such as predictive audience segmentation, subject line suggestions, email copy generation, and workflow timing optimization) fall under the Minimal Risk tier. • Limited Risk Transparency Requirements: Autonomous AI agents interacting directly with end-user consumers (such as web assistant bots or WhatsApp conversational agents) fall under Limited Risk transparency rules (Article 50). CapEngage provides built-in disclosure tags informing users that they are interacting with an AI system.

In accordance with Article 50 of the EU AI Act:

• Machine-Readable Metadata: Generative image assets created via CapEngage AI Image Studio embed C2PA (Coalition for Content Provenance and Authenticity) metadata standard tags indicating AI generation. • Conversational Disclosure Badges: Customer support agents built with Visual Agent Studio include configurable header badges (e.g. 'Powered by CapEngage AI Agent') ensuring end-user transparency.

CapEngage executes continuous evaluations to detect and mitigate potential bias in AI outputs:

• Pre-Deployment Benchmarking: Prompt templates and fine-tuned models are evaluated against standardized safety and fairness benchmarks to prevent discriminatory language or demographic bias. • Human Feedback Loops: Platform administrators can flag inappropriate or inaccurate AI outputs, feeding continuous improvement metrics to our AI engineering team.