The Bottom Line
- New AI Compliance on the Horizon: A forthcoming law on Artificial Intelligence governance will introduce new obligations for businesses developing or using AI systems, requiring updated risk management and compliance frameworks.
- Heightened Reputation Risk: A new Organic Law will modernize the protection of honor, privacy, and self-image, increasing potential liability for companies in the digital sphere, from social media to marketing.
- Legislative Momentum: The Spanish Judiciary’s formal review of these draft laws signals they are moving closer to becoming law. Businesses should begin assessing their potential impact now.
The Details
Spain’s General Council of the Judiciary (CGPJ), the governing body for the country’s judges, has completed its formal review of two significant pieces of draft legislation. This is a mandatory step for any law that impacts the judicial system, indicating that the government’s proposals to regulate Artificial Intelligence and overhaul the legal framework for personal honor and privacy are progressing through the legislative pipeline. While the CGPJ’s reports are non-binding, their approval clears a key procedural hurdle and provides insight into the judicial perspective on these future laws, which will have a profound impact on businesses operating in Spain.
The first proposal is a new law focused on the “good use and governance of Artificial Intelligence.” This signals Spain’s intent to establish a national framework that will likely complement the EU’s AI Act. For CEOs and in-house counsel, this means preparing for a new regulatory landscape. The law is expected to introduce specific requirements for transparency, risk assessment, and human oversight for AI systems. Companies using AI in areas from HR and recruitment to targeted advertising and product development will need to ensure their systems are compliant, auditable, and fair to avoid potential sanctions and litigation.
The second, and equally important, is a draft Organic Law updating the civil protection of the right to honor, personal and family privacy, and one’s own image. The existing law dates back to 1982 and is ill-suited for the challenges of the digital age. This legislative update will likely address modern issues such as online defamation, the viral spread of misinformation, and the use of personal images in AI-generated content. For businesses, this raises the stakes for online reputation management and marketing, potentially creating new causes of action and increasing the risk of significant damages for infringing these fundamental rights.
Source
Consejo General del Poder Judicial
