Hungary has passed its first-ever artificial intelligence law, marking a major step toward establishing national oversight for AI technologies and aligning with the European Union’s broader regulatory framework, according to Daily News Hungary.

The legislation, developed by the Ministry for National Economy, aims to help Hungarian companies and individuals use AI safely, transparently, and competitively. Officials say the new rules are meant to support innovation rather than create extra bureaucracy, with particular attention given to protecting small and medium-sized enterprises.

Hungary’s law mirrors the EU AI Act, which came into force in 2024 and restricts high-risk AI systems in sectors such as healthcare, credit scoring, and insurance. These systems must now meet strict transparency and human oversight standards to prevent “black-box” decision-making. The Hungarian framework implements those EU standards domestically, designating national bodies responsible for approving, monitoring, and investigating AI systems. It also introduces a one-stop-shop model designed to minimize administrative burdens while maintaining accountability.

The legislation establishes a Hungarian Artificial Intelligence Council, a permanent forum of experts from industry, academia, and civil society tasked with monitoring technological trends and advising on best practices. Larger organizations will be required to appoint AI compliance officers, keep records of AI systems used in customer service or decision-making, and report their use to authorities.

While the new law provides structure for business and consumer applications, Daily News Hungary reports that political and educational uses of AI remain largely unaddressed. Cases of AI-generated deepfakes in Hungary’s political arena have already raised concerns, but no specific procedures or authorities have been designated to handle such incidents. Schools and universities also lack clear guidance on classroom AI use, leaving future regulation in these areas uncertain.

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