Applies to companies, not private individuals. They should perhaps impose those fines for making misleading headlines too.
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The bill hasn't passed yet, we'll see what amendments get into the final version.
The general downside of this kind of bills, is that they require marking "any amount" of AI-based modification, like for example: using an "AI optimized" curves modifier to adjust a photo, makes the whole thing into "made using AI".
My phone camera has an AI based detector for focusing on faces, pieces of paper, brightness and color correction... so ALL photos I take with it are automatically "made with AI", which is BS.