“It's not that a country like Chile is aiming to sit at the table with the world's greatest power, it's that it already has,” Chilean Minister of Science, Technology, Knowledge and Innovation, Eisen Echeverly said in an interview earlier this year. France 24.
Her words capture Chilean ambitions to advance pioneering bills to regulate artificial intelligence (AI), sparking national debates about how to balance innovation and ethics.
Latin American Artificial Intelligence (ILIA) recently confirmed Chile as a regional leader in AI with a high level of investment in technology infrastructure, training programs and support policies.
However, as President Gabriel Borick's government seeks to expand the use of AI to promote the country's modernization and sustainable growth, it focuses on promoting “ethical, transparent and responsible use of AI for all its benefits” with a discussion on the implementation of AI regulations.
“Some companies see regulations as an opportunity to grow and others view them as a burden. But in the long run, people who resist innovation will lose their position in the market,” said Sebastian Martinez, general manager of technology consulting and software development company Nisum Chile. Reports from Latin America.
The government's proposed AI regulation bill, first introduced in May 2024, was approved by lawmakers on August 4, 2025, and in the future, went on to the Committee on Science, Technology, Knowledge and Innovation, expanding the conversation by drawing the views of experts in the fields of public, private, academic and civil society.
The government has argued that the implementation of the bill will promote innovation and responsible development that is consistent with international standards, but critics have warned that strict regulations could instead hamper the advancement of technology the nation is aiming to achieve.
“Artificial intelligence is not a threat. It's a tool. But unless you invest in educating people about it, fear will rule and Chile will miss out on the benefits this technology can bring,” Martinez pointed out.
Proposed AI Regulation Legislation
President Borik has consistently emphasized the importance of investing in artificial intelligence as a key driver of development in Chile and Latin America, placing ambitions, innovations and informed decisions at the heart of his government's approach.
While acknowledging the risks pose by AI, the President has emphasized the role and responsibility of humans in regulating advanced technologies to ensure ethical practice.
Speaking at the Congreso Futuro 2024 forum on Artificial Intelligence, Borik said:
These comments came just before his government introduced the proposed bill on May 7, 2024. It aims to ensure that the development and use of AI in Chile respects citizens' rights, promotes innovation and strengthens the state's ability to address the risks and challenges posed by technology.
The bill is consistent with UNESCO's recommendations on ethics. This is the framework that guides Chile to become the world's first country to apply and complete UNESCO Preparation Assessment Methods (RAM).
UNESCO Director Audrey Azurey praised the initiative, saying, “Chile has emerged as a global leader in ethical AI governance and is proud to have played an important role in helping UNESCO achieve this landmark.”
If approved, the bill aims to increase innovation in the business sector, particularly in supporting small and medium-sized businesses (SMEs), by promoting the technical conditions needed for growth, while maintaining regulatory oversight of AI systems.
The proposal also seeks to protect Chileans from algorithmic discrimination, lack of transparency in AI interactions, and AI decisions that could affect fundamental rights in areas such as healthcare, education, legal, and finance.
A Chilean approach to regulating AI
Chile's proposed AI regulations employ a risk-based framework similar to the EU AI law, dividing the system into four categories: unacceptable risk, high risk, limited risk, and no obvious risk.
Under the proposal, AI systems that are considered to pose unacceptable risks will be strictly prohibited. This includes techniques that undermine human dignity, such as deepfakes and sexual content that utilize vulnerable groups such as children and teenagers.
The bill also prohibits systems designed to manipulate emotions without informed consent and affect decision-making, as well as systems that collect or process facial biometric data without explicit permission.
High-risk AI systems are systems that can have a significant impact on health, safety, basic constitutional rights, the environment, or consumer rights. For example, AI tools used in the recruitment process to screen and filter recruitment applications fall into this category due to potential bias and discrimination.
Those deemed to pose limited risk include AI systems (such as public service chatbots that respond to queries within the field of competence) that minimize the likelihood of manipulation, deception, or user interaction errors. In the lowest tier, systems that are considered to have no obvious risk are tools such as film and music recommendation engines, and technology that under any circumstances harm fundamental rights.
In this model, AI systems do not require pre-market certification or review. Instead, each company is responsible for evaluating and classifying its own systems according to established risk categories.
As Minister Etcheverry explained, in the event of a violation of compliance, it will lead to future administrative sanctions imposed by Chilean Data Protection Agency, opening up a decision to appeal in the country's courts.
Innovation or limitations?
Many actors in the public, private and civil society sectors Experts supported the proposed AI bill to focus on responsible ethical use of technology, raising concerns about the close alignment of risk-based frameworks with EU standards and the potential bureaucracy that this model can introduce.
Sebastián Dedñas, a researcher in the Law, Science and Technology Program at Pontificia Universidad Católicade Chile (UC), criticised its strict regulations and the ambiguous definition framework of what constitutes a “high-risk” system. He warned that such ambiguity could suppress innovation and discourage developers who fear heavy sanctions.
The similarity of the framework with EU AI law also raised questions, given the significant differences between the Chilean and EU contexts. Matías Aránguiz, a professor in the Faculty of Law and assistant director of UC's Law Science and Technology Program, highlighted budget and personnel disparities as a key challenge in effectively implementing Chile's similar risk-based regulatory approach.
In August, the Santiago Chamber of Commerce, the association of nonprofits representing more than 2,500 companies across Chile's major economic sectors, raised concerns about the potential impact of the bill.
The association warned that the stiffness of the proposed risk-based framework could have a negative impact on technological development, investment, and national competitiveness.
The association highlighted the need to promote responsible AI development in Chile while avoiding overly restrictive regulations that could limit the potential for innovation and technology transformation.
Reflecting this view, Dueñas commented: “We need AI regulations, but by doing so with the same stiffness as the European Union, they are only trying to soften their own framework, and add friction to the development of Chile.”
On the other hand, for Martinez, what is most needed is investment, not regulation. “Chile needs to urgently invest in AI. Without it, we risk further falling into the US, and the gap between the markets will only continue to grow,” he emphasized.
The government's proposed AI regulation bill reflects more than two years of collaboration, along with input from the National Committee of AI Experts, Congressional Committees, and members of both academia and civil society.
However, discussion continues as actors from various sectors were convened on August 14th to highlight both the remaining progress and complexity in navigating this technical challenge.
This article was originally published by Nadia Hussein Reported in Latin America and reissued with permission.
