Spain’s government has approved a new bill imposing hefty fines on companies that fail to label AI-generated content properly. The measure, aimed at combating misinformation and the spread of deepfakes, aligns with the European Union’s AI Act, which enforces strict transparency rules for high-risk AI applications.
Digital Transformation Minister Oscar Lopez emphasized the dual nature of AI, describing it as both a powerful tool for improving lives and a potential threat to democracy through disinformation. Spain is among the first EU nations to implement these regulations, setting a more rigid standard compared to the United States’ largely voluntary approach.
The proposed law classifies the failure to properly label AI-generated content as a “serious offense,” punishable by fines of up to €35 million ($38.2 million) or 7% of a company’s global annual revenue. The bill also prohibits subliminal AI techniques used to manipulate vulnerable populations, such as chatbots that encourage gambling addiction or AI-powered toys that promote risky behavior among children.
Another key provision bans the use of AI to classify individuals based on biometric data for scoring purposes, preventing organizations from assessing a person’s eligibility for benefits or predicting criminal behavior. However, authorities will still be permitted to use real-time biometric surveillance for national security purposes.
Spain’s newly established AI supervisory agency, AESIA, will oversee enforcement, except in areas such as data privacy, elections, finance, and crime, which will fall under their respective regulatory bodies. The bill must still pass the lower house before becoming law.