Spain Takes Bold Step in AI Regulation with New Bill on Deepfake Labeling

In a significant move to regulate artificial intelligence (AI), Spain’s government approved a bill on Tuesday that mandates companies to properly label AI-generated content, imposing severe penalties for non-compliance. The measure aims to combat the proliferation of deepfakes—highly realistic but synthetic media that can be used to spread misinformation.

According to Reuters, the legislation follows guidelines from the European Union’s AI Act, which places strict transparency requirements on AI systems deemed high-risk. Digital Transformation Minister Oscar Lopez emphasized the dual nature of AI, noting that while it can be beneficial, it also has the potential to spread disinformation and undermine democratic institutions.

Spain is among the first EU nations to implement these stringent regulations, setting itself apart from the United States, where AI oversight remains largely decentralized and dependent on voluntary compliance. Per Reuters, Lopez stressed that deepfake technology poses a risk to everyone, underscoring the necessity of the bill.

The proposed legislation classifies the failure to label AI-generated content as a “serious offence,” punishable by fines reaching up to 35 million euros ($38.2 million) or 7% of a company’s global annual revenue. These provisions reflect growing global concerns over the ethical and societal impact of AI advancements, particularly since OpenAI’s ChatGPT demonstrated the potential for human-like interaction and automation in late 2022.

Read more: Spain Creates AI Regulator to Enforce the AI Act

Beyond labeling obligations, the bill also outlaws practices such as using subliminal AI-generated stimuli to manipulate vulnerable individuals. Lopez provided examples, including chatbots promoting gambling to addicts and AI-driven toys coercing children into hazardous activities. Additionally, the legislation bans AI-based biometric classification systems that rate individuals based on their behavior or personal traits to determine access to benefits or assess potential criminality.

Despite these restrictions, certain AI applications will still be permissible. Authorities will retain the ability to employ real-time biometric surveillance in public spaces for national security purposes, ensuring that law enforcement can leverage AI where necessary.

Per Reuters, oversight and enforcement will be assigned to the newly established AI supervisory agency, AESIA. However, cases involving data privacy, crime, elections, financial ratings, insurance, or capital markets will be handled by their respective regulatory bodies.

Spain’s proactive stance on AI governance highlights the country’s commitment to mitigating the risks posed by emerging technologies.

Source: Reuters