Latin American AI proposals draw on EU risk-based regulation
Regional governments are pursuing risk-based AI frameworks while addressing concerns around data governance, transparency and innovation.
Latin American countries are increasingly looking to the EU’s risk-based approach as they develop AI governance frameworks, according to an International Bar Association analysis.
The IBA noted that Chile, Peru, Brazil and El Salvador have introduced or advanced AI-related legislation in recent years, with several initiatives focusing on risk classification, fundamental rights and accountability. Peru implemented an AI law in 2023 and updated it in 2025, while Brazil has considered similar draft legislation, and El Salvador enacted an AI law in 2025.
Chile has become one of the region’s most active AI policy actors. It helped launch Latam-GPT, an open-source language model trained on Latin American data, and is considering an AI bill that would classify systems according to risk. The proposal includes stricter obligations for high-risk uses, as well as regulatory sandboxes and measures intended to support innovation and smaller businesses.
Legal experts cited by the IBA said the EU model fits parts of Latin America’s existing regulatory culture, particularly in data protection and cybersecurity. However, they also warned that EU-style requirements on risk governance, technical documentation, testing and incident reporting could strain regulators and smaller companies with limited resources.
The analysis also points to regional challenges, including legal differences between countries, gaps in data governance and different economic priorities. While Europe’s AI focus often centres on highly regulated sectors, experts said Latin America may see greater value from AI applications in financial inclusion, payments, healthcare, agriculture, commerce and logistics.
Why does it matter?
Latin America’s approach to AI regulation could shape governance conditions for a region of more than 650 million people. If countries align closely with the EU model, transparency, accountability and fundamental rights may become central pillars of regional AI governance. However, the IBA analysis also shows the risk of importing complex compliance models without sufficient regulatory capacity, which could burden smaller firms and slow adoption in markets where AI could support financial inclusion, healthcare, agriculture and public services.
Would you like to learn more about AI, tech, and digital diplomacy? If so, ask our chatbot!