Spain cracks down on AI: Million-dollar fines for those who don’t label content | Examples of generative ai tools | Generative ai use cases mckinsey | Generative ai benefits for business pdf | Turtles AI

 Spain has introduced legislation that imposes severe penalties on companies that do not properly label AI-generated content, with the aim of countering the use of deepfakes and protecting vulnerable groups.

Key points:

• Severe penalties: Fines of up to 35 million euros or 7 percent of annual revenue for failure to label AI content.
• Transparency obligations: Companies must clearly identify AI-generated content, in line with EU directives.
• Protection of the vulnerable: Prohibited the use of subliminal techniques that may manipulate vulnerable groups, such as minors or people with addictions.
• Dedicated Oversight: The Spanish AI Oversight Agency (AESIA) will ensure enforcement of the new regulations.

The Spanish government, led by Prime Minister Pedro Sánchez, recently approved a bill that imposes stringent obligations on companies that use AI-generated content. This measure aims to ensure that such content is clearly identified in order to combat the spread of so-called deepfakes—videos, images, or audio manipulated through AI algorithms to appear authentic.

The Spanish bill aligns with the guidelines set by the European Union in its recent AI Regulation, approved in May 2024. This regulation classifies AI applications according to their level of risk and imposes transparency obligations for systems considered high-risk. In particular, failure to comply with the rules on labeling AI-generated content is classified as a “serious breach,” which can result in fines of up to €35 million or 7% of the company’s global annual turnover.

In addition to the labeling requirement, Spanish law prohibits the use of subliminal techniques—such as subtle sounds and images—intended to manipulate vulnerable groups. Examples of such practices include chatbots that encourage people with gambling addictions or toys that encourage children to participate in dangerous challenges. The measure also prohibits organizations from using AI to classify individuals based on biometric data, to grant or deny access to certain benefits or to assess the risk of criminal behavior.

The Spanish AI Supervision Agency (AESIA), recently established to monitor the ethical and legal use of AI in the country, will be responsible for overseeing and enforcing these new rules. However, in specific cases involving data privacy, crime, elections, credit ratings, insurance or capital markets, oversight will be the responsibility of the respective control authorities.

This legislative initiative positions Spain among the first countries in the European Union to implement EU rules on AI, taking a more rigorous approach than other systems, such as the United States, which rely mainly on voluntary compliance and a variety of state regulations. The Minister for Digital Transformation, Oscar Lopez, has stressed that AI is a powerful tool that can improve our lives, but it can also be used to spread disinformation and attack democracy.

Spain is taking strong measures to ensure the responsible and transparent use of AI, protecting citizens from the potential pitfalls of misusing this technology.