TLDR: Chile is at the forefront of AI governance in Latin America, with its proposed AI Regulation bill advancing through Congress. The legislation, which adopts a risk-based framework akin to the EU AI Act, aims to strike a crucial balance between fostering technological innovation and safeguarding fundamental human rights and ethical principles. The bill, approved by the Chamber of Deputies in August 2025, is now undergoing further review, prompting a nationwide discussion on the future of AI in the country.
Chile is currently engaged in a pivotal national debate as a groundbreaking bill to regulate the use of Artificial Intelligence (AI) progresses through its legislative process. The proposed legislation, which mirrors the risk-based framework of the European Union’s AI Act, seeks to meticulously balance the nation’s drive for innovation with the imperative to uphold ethical considerations and protect fundamental rights.
The bill, initially introduced to Congress in May 2024, achieved a significant milestone on August 4, 2025, when it was approved by the Chamber of Deputies. It has since moved to the Committee of Future, Science, Technology, Knowledge, and Innovation, where it will undergo further scrutiny and incorporate insights from experts across public, private, academic, and civil society sectors .
Chile’s ambition in AI regulation is underscored by its regional leadership, as confirmed by the Latin American Artificial Intelligence Index (ILIA), which highlights the country’s substantial investments in technological infrastructure, training programs, and supportive policies . Aisén Etcheverry, Chile’s Minister of Science, Technology, Knowledge and Innovation, articulated this vision earlier this year, stating, ‘It’s not that a country like Chile aspires to have a seat at the table with the world’s greatest powers, but rather that it already has one’ .
The proposed AI Regulation bill classifies AI systems into four distinct categories: unacceptable risk, high risk, limited risk, and no evident risk . Systems deemed to pose an unacceptable risk would be strictly prohibited. This includes technologies that could undermine human dignity, such as those generating deepfakes or sexual content exploiting vulnerable groups like children and teenagers, or those using subliminal techniques to manipulate behavior in a way that creates physical or psychological hazards .
For high-risk AI systems, the bill mandates specific rules concerning risk management, data governance, technical documentation, record-keeping, transparency mechanisms, and human oversight . The regulatory approach is largely ex-post, meaning AI systems will not require certification or evaluation before market entry, but developers must assess their risk level and comply with corresponding obligations .
A core objective of the legislation is to promote an ‘ethical, transparent and responsible use of AI for the benefit of all’ . It aims to protect Chileans from issues such as algorithmic discrimination, a lack of transparency in AI interactions, and AI decision-making that could impact fundamental rights in critical areas like healthcare, education, law, and finance . Concurrently, the bill seeks to boost innovation within the business sector, particularly supporting small and medium-sized enterprises (SMEs) by fostering the necessary technological conditions for growth .
Sebastian Martinez, General Manager at Nisum Chile, a technology consulting firm, commented on the industry’s perspective: ‘Some companies see regulations as an opportunity to grow, while others view it as a burden. But in the long run, those who resist innovation will lose ground in the market’ .
In terms of institutional framework, the bill proposes the creation of a Personal Data Protection Agency to oversee and enforce the legislation, ensuring regular evaluation of AI systems for security and effectiveness . Additionally, an AI Technical Advisory Council, comprising representatives from government, academia, and the private sector, will be established to advise the government on national AI strategies, elaborate yearly reports, and maintain a national registry of AI systems .
The Chilean government’s initiative aligns with UNESCO’s Recommendation on the Ethics of AI. Chile holds the distinction of being the first country globally to apply and complete UNESCO’s Readiness Assessment Methodology (RAM), a framework that has guided its policy development and identified governance gaps . This pioneering effort positions Chile as a significant player in shaping global AI governance standards.
Beyond regulation, Chile has already seen the practical application of AI in legal services, with law firms implementing AI tools for document management and analysis, and startups like Lexnova and SEPKTR offering AI-powered legal assistance tailored to the Chilean legal system . The Public Prosecutor’s Office has also adopted AI tools, such as ‘Detective Heredia,’ for detecting relationships in data .
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As the bill continues its journey through parliament, it represents a crucial step for Chile in navigating the complexities of AI, ensuring that its transformative potential is harnessed responsibly and ethically for the benefit of all its citizens.
