Your AI Disclosure Disappeared by Turn Three and Nobody Noticed Until the Regulator Did
Your legal team spent four meetings negotiating the exact disclosure sentence. Engineering put it at the top of the system prompt. QA confirmed it appears in turn one of every session. Three months later a regulator forwards a transcript: turn fourteen of a complaint-handling conversation, an hour of substantive guidance about a refund dispute, and nowhere in those fourteen turns does the user see the words "I am an AI." The disclosure your single-turn compliance review approved is structurally incapable of surviving the conversations that need it.
This is disclosure decay, and it is the multi-turn agentic failure mode that the wave of 2025–2026 chatbot regulation was not designed to catch and your QA process is not configured to test for. The EU AI Act's Article 50 obligations become enforceable on August 2, 2026, with fines up to €35 million or 7% of global turnover. California's SB 243 took effect January 1, 2026, with a private right of action that lets consumers sue directly for at least $1,000 per violation. Washington requires recurring disclosures, with hourly cadences for minors. None of these regimes were written assuming the disclosure would silently drop out of a session after the third tool call — but that is what your runtime is doing right now, on every long-running conversation, in production.
