It comes hours after Ofcom announced it was launching an investigation into X over "deeply concerning reports" about Grok altering images of people.
If found to have broken the law, Ofcom can potentially issue X with a fine of up to 10% of its worldwide revenue or £18 million, whichever is greater.
And if X does not comply, Ofcom can seek a court order to force internet service providers to block access to the site in the UK altogether.
In a statement, Technology Secretary Liz Kendall urged the regulator not to take "months and months" to conclude its investigation, and demanded it set out a timeline "as soon as possible".
It is currently illegal to share deepfakes of adults in the UK, but legislation in the Data (Use and Access) Act which would make it a criminal offence to create or request them has not been enforced until now, despite passing in June 2025.
Last week, campaigners accused the government of dragging its heels on implementing that law.
Liz Kendall told the Commons that the offence "will be brought into force this week". In addition to the Data Act, Kendall said she would also make it a "priority offence" in the Online Safety Act.
Kendall said AI-generated pictures of women and children in states of undress, created without a person's consent, were not "harmless images" but "weapons of abuse".
"The content which has circulated on X is vile. It's not just an affront to decent society, it is illegal," she said.
"Let me be crystal clear - under the Online Safety Act, sharing intimate images of people without their consent, or threatening to share them, including pictures of people in their underwear, is a criminal offence for individuals and for platforms.
"This means individuals are committing a criminal offence if they create or seek to create such content including on X, and anyone who does this should expect to face the full extent of the law."