AI regulation strategies Latin American policymakers should adopt

Latin America stands at a pivotal crossroads for AI regulation, where thoughtfully designed frameworks could simultaneously protect citizens and catalyze economic development. The Brookings Institution highlights how regulation serves not merely as a safeguard but as a strategic asset that can attract investment, foster innovation, and strengthen a region’s position in global tech governance. As AI rapidly transforms industries across the Global South, Latin American policymakers have a unique opportunity to develop regulatory approaches that address their specific socioeconomic contexts while establishing the region as a leader in inclusive AI governance.

The big picture: AI regulation has evolved through three progressive stages—from voluntary ethical guidelines to formal national legislation and finally to coordinated regional governance frameworks.

• Countries with clear regulatory environments, such as the UK in fintech and cybersecurity, typically attract more investment and innovation rather than stifling development.
• Regulation represents a geopolitical opportunity for nations to influence global standards and strengthen their position in international technology diplomacy.

Key considerations: Latin American policymakers must address three distinct dimensions when crafting AI regulation frameworks.

• Market dynamics require support for SMEs, reduced compliance burdens, and fostering open-source ecosystems to prevent monopolization.
• Socioeconomic inclusivity demands AI systems designed for local realities, incorporation of alternative data sources, and safeguards against algorithmic discrimination.
• Regional collaboration necessitates shared data standards, interoperable governance protocols, and the establishment of a coordinated AI governance network.

Strategic priorities: The report outlines five key focus areas for effective AI regulation in Latin America.

• Enabling innovation through regulatory sandboxes allows for controlled experimentation with new AI applications.
• Promoting inclusion via AI literacy programs ensures technologies benefit broader populations.
• Institutionalizing safety through dedicated oversight mechanisms addresses emerging risks.
• Preventing market monopolization protects competitive markets and innovation ecosystems.
• Advancing regional regulatory harmonization creates consistent standards across borders.

Why this matters: Latin America has the opportunity to pioneer development-focused AI governance that could serve as a model for the Global South.

• Smart regulation can help bridge digital divides rather than exacerbating them, ensuring AI benefits reach beyond urban centers and wealthy populations.
• By developing inclusive frameworks that accommodate cultural and linguistic diversity, the region can ensure AI systems reflect local needs rather than importing models designed for different contexts.

Reading between the lines: The emphasis on regional collaboration suggests Latin American countries may achieve greater influence by presenting a unified regulatory approach rather than fragmented national policies.

• This collective approach could strengthen the region’s voice in global AI governance discussions currently dominated by the US, China, and Europe.
• Coordinated policies would likely attract more investment by creating a larger, more coherent market for AI development.