Spain Approves AI Regulation With Heavy Fines for Deepfake Non-Compliance

Spain's government has approved a groundbreaking bill aimed at regulating AI by imposing hefty fines on companies that fail to properly label AI-generated content, particularly deepfakes. This legislation aligns with the European Union's AI Act and mandates that all AI-generated media be clearly identified, with non-compliance potentially resulting in penalties of up to €35 million or 7% of a company's global annual turnover. Digital Transformation Minister Oscar Lopez highlighted the dual nature of AI, emphasizing both its benefits and risks to democracy through the spread of misinformation. The bill also prohibits subliminal manipulation techniques and the use of biometric data for classification purposes, pointing to a significant shift in regulatory approaches compared to the largely voluntary framework in the U.S. Spain is among the first EU nations to enact such stringent regulations, reflecting a growing global concern over the ethical implications of AI technology. The proposed measures await approval from the lower house of parliament.