Hungary’s Parliament has passed the country’s first artificial intelligence law. According to the government, the goal is to ensure that Hungarian businesses and everyday users can work with AI in a safe and transparent way — and avoid falling behind in the global technology race.
The legislation was drafted by the Ministry for National Economy, which argues that special attention was given to protecting small and medium-sized enterprises. Officials say the new rules are designed to create predictable conditions for companies rather than additional bureaucracy. Hungary aligns with the EU’s new AI framework Hungary’s new law is closely based on the European Union’s AI Act, which took effect in 2024 and applies across all member states. The EU rules limit the use of artificial intelligence in areas where it can significantly affect people’s lives — for example in credit scoring or medical decision-making. Systems in these categories are treated as “high-risk” and can only be used if they are transparent, well-documented and subject to human oversight. In other words, a bank or insurer can’t rely on a “black-box” algorithm whose decisions no one can explain. The Hungarian legislation translates this framework into national practice, it designates the bodies that will approve and monitor AI systems and handle complaints. It also introduces a one-stop-shop model, which the government says will keep administrative burdens low while ensuring proper supervision.
New Hungarian AI council The law also creates the Hungarian Artificial Intelligence Council, a body intended to provide professional guidance, monitor technology trends, and coordinate with industry, academia, and civil society. According to the government, the council will act as a permanent consultation forum for those who must adapt to artificial intelligence in practice. What will change in practice? Larger organisations will be required to appoint an AI compliance officer responsible for supervising their AI systems and liaising with authorities. Companies will also need to keep records of the AI tools they use in customer service or decision-making processes. These requirements primarily apply to banks, insurers, government institutions, and major service providers. One of the stated goals is to prevent the careless deployment of AI tools that replace human judgment — or influence users without their awareness.
Politics and education remain gray areas While the law clearly regulates business and consumer uses of AI, it does not yet address political or educational contexts in detail. In recent months, Hungary has already seen cases in which politicians claimed they were targeted with AI-generated, misleading videos, proof that political manipulation is not merely a theoretical concern. Yet the new legislation does not specify which authority would investigate such content, or what procedures would apply during an election period.
Schools and universities are also not given specific guidance, leaving questions about how — and under what rules — AI tools may enter the classroom. So for now, the governance of AI in politics and education remains unresolved and will likely return to the policy agenda later.