In a move to combat the spread of misinformation and deepfakes, Spain's government has approved a bill imposing significant fines on companies that fail to label AI-generated content. This legislation aligns with the European Union's AI Act, which mandates strict transparency requirements for high-risk AI systems.
The new bill classifies the failure to label AI-generated content as a "serious offence," punishable by fines of up to 35 million euros ($38.2 million) or 7% of a company's global annual turnover. The legislation aims to ensure that AI systems do not harm society by spreading misinformation or undermining democracy.
Spain’s new law: Addressing deepfake threats
Digital Transformation Minister Oscar Lopez emphasised the importance of transparency in AI-generated content, stating, "AI is a very powerful tool that can be used to improve our lives … or to spread misinformation and attack democracy". The bill targets the improper use of AI, including subliminal techniques and biometric classification, to protect vulnerable groups and maintain public trust.
Enforcement and oversight
The enforcement of the new rules will be overseen by the newly-created AI supervisory agency, AESIA. Specific cases involving data privacy, crime, elections, credit ratings, insurance, or capital market systems will be handled by their respective regulatory authorities.
Spain is among the first EU countries to implement the bloc's comprehensive AI regulations, which are considered more stringent than the voluntary compliance framework in the United States.