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Spain to Impose Strict Penalties for Unlabeled AI-Generated Content

ByNeelima N M
2025-03-13.5 months ago
Spain to Impose Strict Penalties for Unlabeled AI-Generated Content
Spain's new bill imposes strict penalties for failing to label AI-generated content, aiming to increase transparency and combat disinformation

Spain's government has approved a bill that will impose severe penalties on companies that fail to label AI-generated content appropriately. The bill, which aligns with the European Union's AI Act, aims at enhancing transparency and combating the circulation of deceptive AI-generated content, including deepfakes.

Transparency Requirements

The new law, pending approval by the lower house of Parliament, considers failing to label AI-generated content a "serious offence." Fines of up to €35 million or 7% of worldwide revenue will be imposed on companies that misrepresent AI content. The legislation is in response to increasing worries about AI misuse in spreading disinformation and weakening democratic processes.

Spain Among First EU Nations to Implement AI Rules

Reuters reports that Spain leads the way on AI regulation in Europe, becoming one of the first EU countries to adopt the bloc's tough AI transparency requirements.

Digital Transformation Minister Óscar López said, "AI is a very powerful tool that can be used to improve our lives … or to spread misinformation and attack democracy."

In contrast to the United States, which is depending on voluntary guidelines and varying stae regulations, Spain is implementing a holistic framework to make AI accountable.

Crackdown on Deepfakes and AI-Driven Manipulation

The bill bans AI-generated videos, images, and audio that deceptively appear real, targeting the misuse of deepfake technology. López stressed that anyone could fall victim to deepfake attacks, making it crucial to establish clear safeguards against their misuse.

Beyond deepfakes, the bill also prohibits the use of subliminal AI techniques that manipulate vulnerable populations. Lopez mentioned that AI-driven chatbots which encourage gambling addiction or AI-powered toys that promote dangerous challenges among children would be banned.

Restrictions on AI-Based Biometric Profiling

The proposed legislation also introduces measures to protect individuals from AI-driven biometric profiling. Organizations cannot classify people by behavior or personal traits to decide benefit access or predict criminal activity. However, the law allows authorities to use real-time biometric surveillance in public spaces, but only for national security and enforcement.

Additionally, enforcement of the law will primarily fall under the newly established AI supervisory agency, AESIA. Relevant regulatory bodies will oversee specific cases involving data privacy, criminal investigations, elections, credit ratings, insurance, and financial markets.

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