By ACTI , Santiago Chamber of Commerce , National Chamber of Commerce, FinteChile , Chilean LegalTech Association, Chile Data Centers and ALAI

This press release was published in English using an automatic translation system

The undersigned organizations, representing Chile’s technological, innovation, and economic ecosystem, express our deep concern regarding the current draft law regulating artificial intelligence (AI) systems in the country.

While we appreciate the efforts to establish a regulatory framework that safeguards people’s fundamental rights, we caution that the legislative proposal, in its current form, imposes disproportionate restrictions that threaten to hinder technological development, investment, and national competitiveness, to the direct detriment of people.

Our main observations are:

Excessive regulatory rigidity: The bill establishes highly burdensome technical and legal obligations that are difficult to comply with, especially for startups, research centers, and technology SMEs.

Limitations to the development of foundational models: The lack of mechanisms to facilitate the training of advanced AI models puts the country’s ability to participate at the forefront of global innovation at risk.

Risks to technological development: The form that the project has taken prevents

that AI models can be trained with information and data of national origin as in many cases these are works that copyright protects for purposes other than training AI models – training that does not violate the

due protection of copyright – generating significant risks of bias in the systems consumed in Chile, slowing the development of this technology and undermining the roadmap promoted by the National Data Center Plan itself, launched by the government.

Overregulation in a small market: The proposal goes even further than European regulations, failing to consider the structural differences in our ecosystem, which could discourage foreign investment and limit local growth.

Misalignment with international trends: While countries like the United States, Japan, and members of the European Union are reviewing and rolling back aspects of their regulations after finding them ineffective, Chile is moving toward even stricter standards. Insisting on what comparative experience has shown doesn’t work is, at the very least, questionable. It is essential that public policymakers take into account and incorporate international evidence and experience when legislating on the matter. Chile currently has a National Artificial Intelligence Plan that already establishes clear frameworks for the development and implementation of this technology in a more flexible manner and that allows for supporting its rapidly advancing development. The existence of this Plan has not been adequately considered or weighed in the legislative discussion process for the Bill.

Negative impact on regional competitiveness: While other countries move forward with more flexible frameworks, Chile risks falling behind in the race for technological leadership in Latin America.

It is important to recognize that Artificial Intelligence represents a historic opportunity to boost Chile’s economic and social development. This technology is already generating significant benefits in sectors such as healthcare, through more accurate diagnoses and personalized treatments; in education, through adaptive learning systems; in business productivity, by optimizing processes and reducing costs; and in sustainability, by improving the management of natural resources. International experience shows that countries that have adopted flexible and balanced regulatory frameworks have managed to attract significant investment, create high-quality jobs, and position themselves as leaders in digital innovation. Chile has the potential to become a regional AI hub, leveraging its skilled human capital, digital infrastructure, and institutional stability, provided a regulatory framework that fosters responsible innovation is established.

We urgently call on the Legislative and Executive branches to open a space for broad and technical dialogue with the actors of the digital ecosystem, to build balanced regulations that protect people without sacrificing their potential.

We reiterate that the Bill, in its current terms, constitutes a harmful proposal that will seriously hinder the development and adoption of artificial intelligence in the country, also negatively impacting users, who increasingly require reliable and effective AI-based tools.

Chile needs an AI law that enables, not restricts.

Signed:

Chilean Association of Information Technology Companies AG (ACTI) Santiago Chamber of Commerce

National Chamber of Commerce

Chilean Fintech Companies Association, FINTECHILE.

Legaltech Association of Chile

Chilean Data Center Association – Chile Data Centers

AG Latin American Internet Association, ALAI.