Spain’s government passed a bill on Tuesday that imposes hefty fines on companies that fail to label content created by artificial intelligence (AI), aiming to reduce the prevalence of “deepfakes.” The legislation incorporates guidelines from the European Union’s significant AI Act, which establishes stringent transparency requirements for high-risk AI systems, according to Digital Transformation Minister Oscar Lopez.
“AI is a very powerful tool that can be used to improve our lives or to spread misinformation and attack democracy,” he said.
Spain is one of the first countries in the EU to adopt the bloc’s regulations, which are seen as more extensive than the U.S. system that mainly depends on voluntary adherence and a mix of state laws. Lopez pointed out that anyone can fall victim to “deepfake” attacks, referring to videos, images, or audio that have been altered or created using AI but are presented as authentic.
The proposed Spain legislation, pending approval from the lower house, categorizes failure to properly label AI-generated content as a “serious offence,” potentially resulting in fines of up to 35 million euros ($38.2 million) or 7% of a company’s global annual revenue.
Since the launch of ChatGPT by OpenAI in late 2022, which impressed users with its human-like interactions and various capabilities, ensuring that AI systems do not pose risks to society has become a key focus for regulators. The bill also prohibits practices like using subliminal techniques—imperceptible images or sounds—to manipulate vulnerable populations. Lopez mentioned examples such as chatbots encouraging gambling addictions or toys prompting children to engage in risky challenges.
Additionally, the Spain legislation would restrict organizations from using AI to classify individuals based on biometric data, behavior, or personal characteristics to determine their access to benefits or evaluate their likelihood of committing crimes. Nonetheless, authorities would still be permitted to conduct real-time biometric surveillance in public areas for national security purposes. The enforcement of these new regulations will fall under the newly established AI supervisory agency, AESIA, except in certain areas like data privacy, crime, elections, credit ratings, insurance, or capital markets, which will be managed by their respective regulatory bodies.
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