Spain’s Bold Move to Regulate AI and Tackle Deepfakes

Spain Approves Law to Regulate AI Content and Combat Deepfakes

On March 17, 2025, Spain’s government officially passed a landmark legislative measure aimed at regulating artificial intelligence (AI) content, specifically targeting the issue of deepfakes. This new law imposes significant penalties on companies that fail to properly label AI-generated content, addressing the growing concern over the misuse of manipulated media.

Legislative Details

The legislation classifies the failure to label AI-generated content as a serious offense. Companies that do not comply with this regulation could face fines of up to €35 million (approximately $38.2 million) or 7% of their global annual turnover. Additionally, the law prohibits the use of subliminal techniques that could manipulate vulnerable individuals, highlighting the government’s commitment to protecting citizens from potential harm.

Spanish Minister for Digital Transformation and Civil Service, Oscar Lopez, emphasized the dual nature of AI, stating, “AI is a very powerful tool that can be used to improve our lives … or to spread misinformation and attack democracy.” This statement underscores the importance of establishing regulatory frameworks to ensure the responsible use of AI technologies.

Scope and Enforcement

Spain becomes one of the first EU member states to implement such stringent regulations, which are considered more rigorous than the existing framework in the United States, where compliance is largely voluntary and varies by state. The newly established Artificial Intelligence Supervisory Agency (AESIA) will oversee the enforcement of these regulations, while specific areas such as data privacy and crime will be managed by relevant regulatory bodies.

The proposed bill further restricts organizations from using AI to classify individuals based on biometric data, behavior, or personal characteristics, particularly in contexts that determine access to benefits or assess criminal activity likelihood. However, the legislation does allow for real-time biometric surveillance in public spaces for purposes of national security.

Implications for AI Regulation in the EU

This legislation is part of a broader trend across the European Union to standardize AI regulations. In August 2024, the European Commission officially brought the EU AI Act into force, aimed at ensuring that AI systems developed and utilized within the EU adhere to safety and ethical standards designed to protect fundamental rights. This framework seeks to create a unified internal market for AI, fostering innovation while ensuring public safety.

As the enforcement of the AI Act progresses, member states are required to designate national authorities by August 2, 2025 to ensure compliance and conduct market surveillance, aligning with Spain’s proactive approach to AI regulation.

Conclusion

Spain’s new legislation represents a significant step towards the responsible regulation of AI technologies. By imposing strict penalties for the misuse of AI-generated content and deepfakes, the Spanish government aims to enhance transparency and protect citizens from potential harms associated with manipulated media. This initiative not only sets a precedent within the EU but also reflects the growing global recognition of the need for effective AI governance.

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