Spain to impose $38m fines for unlabelled AI content under strict new law

Spain's new AI law aims to curb deepfakes, protect users from manipulation, and set strict transparency rules for companies
An undated image. —  Unsplash
An undated image. —  Unsplash 

Spain has introduced a strict AI law to stop the spread of deepfakes and ensure transparency in AI-generated content. Companies that fail to properly label AI-created images, videos, or text could face fines of up to $38 million or 7% of their annual global revenue.

Spain is among the first EU member states to introduce strict AI content regulations, leading the way for AI regulation as governments globally struggle to mitigate the threats posed by artificial intelligence.

Spain’s new law for unlabelled AI content

The new bill, inspired by the EU’s AI Act, aims to prevent misinformation and protect the public. The Digital Transformation Minister Oscar Lopez stated AI is a great asset but becomes dangerous when deployed to mislead people or play games with democracy.

Significantly, the legislation also prohibits subliminal AI methods, including concealed sounds or images intended to drive individuals' behaviour. This encompasses chatbots that promote gambling dependencies or AI-based toys that encourage children to take risks.

It also restricts AI-based biometric surveillance, preventing companies from scoring individuals based on their behaviour or personal traits to determine access to services.

However, the bill allows real-time biometric monitoring in public places for national security. The government will continue to utilise AI to prevent crime, but private corporations cannot use AI to monitor or assess individuals.

A new AI overseer, AESIA, will be in charge of enforcement unless it involves data privacy, crime, elections, financial markets, or insurance, which will be the responsibility of dedicated regulators.