Spain is taking a hard line on AI-generated misinformation. The country’s Council of Ministers has approved draft legislation that could hit artificial intelligence (AI) companies with fines as high as €35 million if they fail to properly label AI-generated content. The move aligns with the European Union’s broader push for AI transparency and regulation.
Tough Penalties For AI Misuse
The proposed law categorizes mislabelling AI-generated content as a serious violation, carrying penalties ranging from €7.5 million to €35 million—or between 2% and 7% of a company’s global turnover. Startups and mid-sized businesses may face lower fines, but the core message is clear: Spain wants AI-generated content to be transparent and accountable.
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“Artificial intelligence must serve to improve our world, not to spread hoaxes, lies, and defamation,” Spain’s Digital Transformation Minister Óscar López said in a statement on Instagram. He emphasized that AI should be used for beneficial applications like medical research, disaster prevention, and urban traffic management—not for fueling misinformation.
The bill, heavily influenced by the EU AI Act, still requires approval from Spain’s Congress of Deputies before becoming law.
AI Practices Under Fire
Beyond mislabelling penalties, the draft law also bans AI-driven subliminal techniques designed to manipulate users without their consent. One example would be a chatbot that detects gambling addiction and encourages users to place bets.
Additionally, the bill outlaws AI-based profiling that categorizes individuals by race, political beliefs, religion, or sexual orientation using biometric data or social media activity. The legislation specifically addresses concerns raised over an algorithm used in Catalonia’s prison system to predict recidivism risk.
AI firms that rely on biometric data for employee monitoring without human oversight could also be fined between €500,000 and €7.5 million, or up to 2% of their global revenue.
AI Systems Could Face Bans In Spain
The bill grants Spanish authorities the power to temporarily suspend AI systems operating in the country if they cause severe harm, including fatalities. While the specifics of enforcement remain to be seen, this provision signals that Spain is willing to take decisive action against AI technologies that pose serious risks.
With the EU AI Act setting the tone for AI regulation across Europe, Spain’s approach underscores a growing trend: governments are no longer willing to let AI evolve unchecked. For AI companies, compliance with transparency rules is no longer optional—it’s a business imperative.
