Spain Introduces Strict AI Regulation with Heavy Fines for Unlabeled AI-Generated Content

Spain to Impose Massive Fines for Not Labelling AI-Generated Content

MADRID (Reuters) - Spain's government approved a bill on Tuesday imposing massive fines on companies that use content generated by artificial intelligence (AI) without properly labelling it as such, in a bid to curb the use of so-called "deepfakes". The bill adopts guidelines from the European Union's landmark AI Act imposing strict transparency obligations on AI systems deemed to be high-risk, Digital Transformation Minister Oscar Lopez told reporters. "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 among the first EU countries to implement the bloc's rules, considered more comprehensive than the United States' system that largely relies on voluntary compliance and a patchwork of state regulations. Lopez added that everyone was susceptible to "deepfake" attacks - a term for videos, photographs or audios that have been edited or generated through AI algorithms but are presented as real. The Spanish bill, which needs to be approved by the lower house, classifies non-compliance with proper labelling of AI-generated content as a "serious offence" that can lead to fines of up to 35 million euros ($38.2 million) or 7% of their global annual turnover. Ensuring AI systems do not harm society has been a priority for regulators since OpenAI unveiled ChatGPT in late 2022, which wowed users by engaging them in human-like conversation and performing other tasks. The bill also bans other practices, such as the use of subliminal techniques - sounds and images that are imperceptible - to manipulate vulnerable groups. Lopez cited chatbots inciting people with addictions to gamble or toys encouraging children to perform dangerous challenges as examples. It would also prevent organisations from classifying people through their biometric data using AI, rating them based on their behaviour or personal traits to grant them access to benefits or assess their risk of committing a crime. However, authorities would still be allowed to use real-time biometric surveillance in public spaces for national security reasons. Enforcement of the new rules will be the remit of the newly-created AI supervisory agency AESIA, except in specific cases involving data privacy, crime, elections, credit ratings, insurance or capital market systems, which will be overseen by their corresponding watchdogs. ($1 = 0.9163 euros) (Reporting by David Latona; Editing by Inti Landauro and Tomasz Janowski)

Spain to impose massive fines for not labelling AI-generated content

MADRID, March 11 (Reuters) - Spain's government approved a bill on Tuesday imposing massive fines on companies that use content generated by artificial intelligence (AI) without properly labelling it as such, in a bid to curb the use of so-called "deepfakes". The bill adopts guidelines from the European Union's landmark AI Act imposing strict transparency obligations on AI systems deemed to be high-risk, Digital Transformation Minister Oscar Lopez told reporters. "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 among the first EU countries to implement the bloc's rules, considered more comprehensive than the United States' system that largely relies on voluntary compliance and a patchwork of state regulations. Lopez added that everyone was susceptible to "deepfake" attacks - a term for videos, photographs or audios that have been edited or generated through AI algorithms but are presented as real. The Spanish bill, which needs to be approved by the lower house, classifies non-compliance with proper labelling of AI-generated content as a "serious offence" that can lead to fines of up to 35 million euros ($38.2 million) or 7% of their global annual turnover. Ensuring AI systems do not harm society has been a priority for regulators since OpenAI unveiled ChatGPT in late 2022, which wowed users by engaging them in human-like conversation and performing other tasks. The bill also bans other practices, such as the use of subliminal techniques - sounds and images that are imperceptible - to manipulate vulnerable groups. Lopez cited chatbots inciting people with addictions to gamble or toys encouraging children to perform dangerous challenges as examples. It would also prevent organisations from classifying people through their biometric data using AI, rating them based on their behaviour or personal traits to grant them access to benefits or assess their risk of committing a crime. However, authorities would still be allowed to use real-time biometric surveillance in public spaces for national security reasons. Enforcement of the new rules will be the remit of the newly-created AI supervisory agency AESIA, except in specific cases involving data privacy, crime, elections, credit ratings, insurance or capital market systems, which will be overseen by their corresponding watchdogs. ($1 = 0.9163 euros) Reporting by David Latona; Editing by Inti Landauro and Tomasz Janowski Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Boards, Policy & RegulationHuman Rights

Spain cracks down on unlabeled AI content with heavy fines

Spain is taking a tough stance on artificial intelligence-generated content, introducing a bill that slaps companies with fines reaching 38 million dollars or 7% of their revenue if they fail to label AI-created material (via Reuters). The legislation, closely aligned with the European Union's AI Act, aims to combat misinformation and prevent AI from manipulating the public through deepfakes and subliminal messaging. The country's newly established AI watchdog, AESIA, will oversee compliance, reinforcing Spain's position as a leader in AI regulation. For now, it remains to be seen whether other countries will take a similar path.

Spain to fine AI companies up to €35 million for mislabelling content

Spain's council of ministers approved a draft law that would fine AI companies up to €35 million for not correctly labelling their content. Spain's council of ministersadopted draft legislation that could see massive fines imposed on artificial intelligence (AI) companies that do not appropriately label AI-generated content in an effort to limit "deepfakes". The billclassifies incorrect AI labelling as a serious offence, with a potential penalty of €7.5 million to €35 million or between 2 and 7 per cent of a company's global turnover. The new legislation suggests that startups and medium-sized businesses might receive a lower penalty. "Artificial intelligence must help us improve the world that we live in," Oscar Lopez, Spain's digital transformation minister, said about the law onInstagram on Tuesday. Lopez said the law will focus AI use on medical research, preventing disasters and improving traffic in Spanish cities instead of "spreading hoaxes, lies and defamation". Spain's act adopts guidelines from the EU AI Act, the bloc's relatively new law that imposes strict transparency rules on AI systems that are deemed to be high-risk, according to Lopez. The bill still needsapproval by Spain's Congress of Deputies before it comes into effect. Other practices banned by the Act The Spanish government says the draft law bans other practices like the use of subliminal techniques, including "imperceptible images or sounds" to manipulate decisions without consent. An example of this kind of technique would be a chatbot that identifies users with a gambling addiction and encourages them to log in to a gambling platform. The bill would also prevent AI companies from classifying people based on race, political views, religion, or sexual orientation based on their biometric data or social media presence. This data cannot be used to decide whether a person is more likely than others to commit a crime, a criticism levied against an algorithm used at a prison in Catalonia to determine the risk of prisoners reoffending. AI companies that use biometrics to monitor employee attendance but do not have human supervision over this system could also be fined between €500,000 to €7.5 million or between 1 and 2 per cent of annual global turnover. The bill also lets the Spanish government temporarily withdraw an AI system from the country "when they have caused a serious accident, like the death of a person".

Spain Approves AI Bill With Heavy Fines for Unlabeled Deepfakes

Disclaimer: This content generated by AI & may have errors or hallucinations. Edit before use. Read our Terms of use Becoming one of the first member countries of the European Union to implement its AI Act, Spain has approved an AI bill that, among other malicious AI practices, outlines heavy fines for unlabeled AI-generated content, including deepfakes. "Failure to properly label any AI-generated or manipulated image, audio, or video that depicts real or nonexistent people saying or doing things they've never done or in places they've never been -- which constitutes a deepfake -- will also be considered a serious infringement," Spain's Ministry of Digital Transformation noted in a press release. It further clarified, "Such content must be identified as AI-generated 'in a clear and distinguishable manner no later than the time of the first interaction or exposure,' as specified in the European regulation," referring to the EU AI Act. First introduced in 2021, the Act underwent much deliberation and revision before being passed in March 2024. It came into force in member states in August 2024 and will be fully applicable by August 2, 2026, allowing entities time for compliance. The Act, described by some as a "timid" form of ex-ante approach to regulation, lays down risk-based rules that AI developers and deployers need to follow regarding specific uses of AI, basically prohibiting commercialization of some applications of AI. One of the provisions worth noting is the one that prohibits the use of biometric data to train algorithms that may be used by law enforcement agencies for criminal profiling, thus marking a step towards reducing bias in such technologies. However, even for this provision the Act also allows exemptions for national security and border control agencies. This has raised concerns -- similar to global debates on surveillance technology regulations -- about balancing security with individual rights. The Spanish bill outlines fines of up to 35 million euros or 7% of a company's global annual turnover for improper labeling of AI content, Reuters reported. The bill also proposes to charge fines on failure to implement human supervision of AI systems that incorporate biometrics for worker surveillance and quality inspection in industrial sectors, among others. In these cases, penalties will range from €500,000 to €7.5 million, or between 1% and 2% of global turnover. In India, AI regulation is still in a wobbly position, with the government fluctuating its stance between setting down an AI framework vs keeping in place a light touch regulation. In the latest move, the government has proposed the setting up of an AI Governance Board to review and authorise AI applications. Meanwhile, deepfake regulation remains largely unaddressed. The general and state elections last year saw many political figures and parties misusing deepfakes for spreading misinformation. Apart from electoral gains, some Indian actresses also found their explicit deepfakes being circulated online. In response, the Indian government only reiterated the prevalence of current IT Rules, with some ministers indicating that there might be a law for deepfakes 'if needed'.