Spain to Fine Companies $38.2 Million for Unlabeled AI-Generated Images

SPAIN LAW

Spain has approved a bill that imposes fines of up to $38.2 million for companies that do not properly label AI-generated content, including deepfake images and videos.

According to a report by Reuters, Spain’s government has approved a bill aimed at curbing the use of deepfakes — AI-generated videos and images that are falsely presented as real.

Under the proposed law, failing to properly label AI-generated content will be considered a “serious offense,” carrying potential fines of up to 35 million euros ($38.2 million) for companies. Alternatively, businesses may be penalized with fines amounting to 7% of their global annual revenue.

“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 says in a press release.

The ministry adds that such content must be clearly labeled as AI-generated “in a clear and distinguishable manner no later than the time of the first interaction or exposure,” aligning with requirements from the EU AI Act.

Oscar Lopez, Spain’s Digital Transformation Minister, says it is crucial that AI-generated content be regulated by governments.

“AI is a very powerful tool that can be used to improve our lives or undermine democracy; it can be used for good or bad purposes,” Lopez says in the news release.

The draft bill is set to undergo an expedited review process before returning to the Council of Ministers for final approval and submission to Parliament.

According to the report by Reuters, the country’s legislation aligns with the EU AI Act, which enforces strict transparency rules for high-risk AI systems. However, Spain is among the first EU countries to implement these rigorous measures.

The Spanish bill comes as China announced new laws to ban AI-generated images that are not labeled as such.

Earlier this month, Chinese authorities announced “identification measures” for AI-generated content. The new regulations require images, videos, audio, and “virtual scenes” to include metadata that explains they’re the product of AI.

 


Image credits: Header photo licensed via Depositphotos.

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