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On 5 March 2026, the European Commission published the second draft of a voluntary Code of Practice on Marking and Labelling of AI-Generated Content. The code facilitates compliance with Article 50 of the Artificial Intelligence (AI) Act, which establishes marking and labelling requirements for AI-generated content. The revised draft incorporates feedback from hundreds of participants, including industry representatives, academia, civil society organisations, and other stakeholders. Input was gathered through an EU survey, stakeholder meetings, and workshops held in January 2026. The Commission also integrated contributions from Member States via the AI Board and Members of the European Parliament represented in the IMCO-LIBE Working Group monitoring AI Act implementation. The second draft streamlines and simplifies the code, providing greater flexibility for signatories while reducing compliance burden. It promotes the use of open standards for AI content marking and an EU icon for labelling to simplify compliance and reduce costs. The code is structured into two sections. Section 1 addresses marking and detecting AI content for providers of generative AI systems, introducing a revised two-layered marking approach involving secured metadata and watermarking, optional fingerprinting and logging, and detection and verification protocols. Section 2 targets deployers of AI systems and focuses on labelling deepfakes and text publications concerning matters of public interest. This section adopts a more flexible, practice-oriented approach with design and placement requirements for icons, labels, or disclaimers, while proposing a task force to develop a future uniform interactive EU icon. The Commission will collect feedback on the second draft until 30 March 2026. The code is expected to be finalised by early June 2026, with the transparency rules becoming applicable on 2 August 2026.