The Hungarian Parliament has just passed the country’s first law on artificial intelligence, aimed at ensuring businesses and citizens can use AI safely and transparently without falling behind in the global technology race.
The law, drafted by the Ministry of National Economy, places special emphasis on protecting small and medium-sized enterprises (SMEs) and commits to not creating additional administrative burdens, aiming instead for a predictable legal environment.
The act is based on the European Union’s AI Act, which took effect in 2024, imposing strict regulations on “high-risk AI systems”—such as those used in credit scoring or medical decision-making. These systems must have transparency,explainability, and human oversight, with a complete ban on unverifiable “algorithmic black boxes.”
The Hungarian law transposes the EU framework into national practice, designating competent authorities for approving,monitoring, and handling complaints about AI systems, while adopting a “one-stop-shop” model to reduce procedures while ensuring control.
The act also establishes the Hungarian AI Council—an expert advisory body to monitor technological trends and coordinate between the government, businesses, academia, and civil society.
Large organizations (banks, insurance companies, state agencies, large service providers) will be required to appoint an AI compliance officer, responsible for monitoring AI systems and reporting on AI tools used in services or decision-making.
A key objective is to prevent the use of AI to completely replace human judgment or to covertly influence user behavior.
However, two key areas—politics and education—remain unclearly regulated: the law does not specify which authority handles AI-generated fake videos in elections, nor is there guidance on the use of AI in schools or universities.
Experts warn this creates a legal gap, especially as Hungary has recently recorded cases of political manipulation using fake AI content.
📌 The Hungarian Parliament has just passed the country’s first artificial intelligence law. Based on the European Union’s AI Act (effective 2024), the law imposes strict regulations on “high-risk AI systems,” such as those in credit scoring or medical decision-making. The Hungarian law transposes the EU framework into national practice: establishing the Hungarian AI Council, and requiring large organizations like banks, insurance, state agencies, and large service providers to appoint AI compliance officers. However, two key areas—politics and education—remain unclearly regulated: the law does not specify which authority handles AI-generated fake videos in elections, nor is there guidance on the use of AI in schools or universities.
