Companies that fail to label AI content will face heavy fines in Spain

(CLO) The Spanish government has just passed a new bill to severely punish companies that use content generated by artificial intelligence (AI) without proper labeling.

Digital Transformation Minister Oscar Lopez said the bill follows strict rules from the European Union (EU) AI Act, which requires transparency for high-risk AI systems. He stressed that AI can help improve lives but can also be used to spread misinformation.

Under the bill, which still needs approval from the lower house of parliament, Spain stipulates that violations of AI content labeling could be considered a “serious violation,” with fines of up to €35 million or 7% of the offending company’s annual global turnover.

Illustration: GI

The move is aimed at curbing the spread of deepfakes – images, videos or audio created using AI that can be mistaken for real content.

In addition to deepfakes, the bill also prohibits potential forms of manipulation, such as using AI to exploit vulnerable groups. Lopez cited examples like chatbots that encourage gambling addiction or AI toys that encourage children to take dangerous challenges.

At the same time, the bill prohibits the use of AI to classify people based on biometric data, assess behavior or personal characteristics to grant benefits or predict criminal risk. However, the government is still allowed to apply real-time biometric surveillance in public places for national security reasons.

Enforcement of the new rules will be handled by Spain's AI watchdog (AESIA), except in specific areas such as data privacy, crime, elections, credit ratings and insurance – which will be overseen by dedicated agencies.

Spain is one of the first EU countries to implement comprehensive AI regulations, unlike the US approach, which relies largely on voluntary compliance and state-by-state regulations. Lopez warned that anyone could fall victim to deepfakes, as the fake content becomes more sophisticated.

Ngoc Anh (according to Reuters, Westlaw Today)

Source: https://www.congluan.vn/tay-ban-nha-cac-cong-ty-bi-phat-nang-neu-khong-dan-nhan-noi-dung-ai-post338114.html