Spain advances new AI governance law

Spain has started the parliamentary process for the Draft Organic Law on the Proper Use and Governance of AI, a measure intended to adapt the EU AI Regulation to the national legal framework. The proposal builds on Spain’s existing digital rights work, its state-run AI supervisory agency and its regulatory sandbox for AI systems.

The governance model places the Spanish Artificial Intelligence Supervisory Agency, AESIA, at the centre of market surveillance and makes it the single point of contact with EU institutions. Sector regulators including the Bank of Spain, the National Securities Market Commission, the Directorate General of Insurance and Pension Funds, the General Council of the Judiciary and the Central Electoral Commission would retain powers in their areas. The Spanish Data Protection Agency would oversee AI systems used in border management, biometric identification and categorisation.

The draft law classifies infringements as very serious, serious and minor, with the most serious breaches carrying penalties of up to € 35 million or 7 per cent of annual turnover. It also introduces proportionality measures for SMEs and start-ups, early-payment reductions, corrective measures, a public-sector AI inventory, an AI Officer role and a framework for regulated testing environments before market launch.