An Enabling Regulatory Framework for Artificial Intelligence in Latin America and the Caribbean

May combine two claims.

Better data leadership and interoperability are necessary foundations for any enabling AI regulatory framework in LAC.

“Strengthening data leadership and interoperability is therefore not an optional add-on but a prerequisite for any enabling regulatory framework discussed herein.”

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Many LAC countries face constrained regulatory capacity, fragmented governance, and competing demands on limited public funds.

“Many have limited regulatory capacity, fragmented governance structures, and competing priorities for scarce public resources.4”

• cites OECD and IDB, 2024Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

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The United States lacks one national AI statute and instead uses sector-specific regulators plus voluntary NIST standards.

“The United States has avoided a single national law, instead relying on existing sectoral regulators (e.g., the Food and Drug Administration, Federal Trade Commission, and Consumer Financial Protection Bureau) to issue guidance while the National Institute of Standards and Technology AI Risk Management Framework provides voluntary standards (NIST, 2023).”

• cites NIST, 2023Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

• cites Freeman Engstrom et al., 2020 sourceNot checked — no full text of the source

May combine two claims.

For the monitoring facet, the LAC score is 9%, while the OECD score is 44%.

“in the “monitoring” facet-critical for implementing risk-based regulation-LAC countries score just 9 percent compared to 44 percent in OECD countries.”

• cites OECD and IDB, 2024Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

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The EU's risk-based model is orderly and predictable, yet it may impose high costs and burdens on smaller entities.

“This approach is systematic and predictable but can be costly and demanding for smaller actors, raising questions about its applicability in developing economies.”

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China's AI rules put national security, content control, and critical infrastructure first, and are closely tied to wider state goals.

“China prioritizes national security, content management, and control of critical infrastructure, with regulation tightly coupled to broader state objectives (Sheehan, 2023).”

• cites Sheehan, 2023Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

May combine two claims.

LAC has greater market concentration than advanced economies, and its median markup is about 1.35 versus 1.20 in advanced economies.

“According to the IDB (forthcoming), market concentration in the region (measured through the Herfindahl-Hirschman Index) is times higher in the LAC region than in advanced economies and the median markup in the region is around 1.35, compared to 1.20 in advanced economies.”

• cites IDB (forthcoming)Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

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The UK's approach relies on sandboxes, guidance tailored to sectors, and dedicated safety bodies such as the AI Safety Institute.

“The United Kingdom emphasizes regulatory sandboxes, sector-specific guidance, and specialized safety institutions like the AI Safety Institute (UK Government, 2023).”

• cites UK Government, 2023Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

Probably not a substantial claim: may not pass S4 (based).

Whether AI ecosystems grow or stall depends on clear rights over data and outputs.

“Clear property rights over data and outputs similarly condition whether AI ecosystems flourish or stagnate.”

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Stable and inexpensive rules can speed AI adoption and investment, whereas unpredictable or expensive regimes may push activity to other jurisdictions.

“These tradeoffs are particularly visible in the investment dimension: predictable, lowcost regulations can accelerate adoption and investment, while unstable or costly regimes risk driving activity elsewhere.”

May combine two claims.

Trust in national legislatures among Latin Americans is 27% at high or moderately high levels, and trust in political parties is 19%.

“27 percent of Latin Americans report high or moderately high trust in national legislatures, and 19 percent in political parties”

• cites OECD, 2025 sourceNot checked — no full text of the source

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A comprehensive data strategy exists in just 26% of LAC countries, and 70% do not have a public body responsible for data leadership.

“Similarly, only 26 percent of LAC countries have a comprehensive data strategy, and 70 percent lack a public organization responsible for data leadership.”

• cites OECD and IDB, 2024Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

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In LAC, 70% of countries lack a public data-leadership body, and 83% lack data inventories.

“According to the OECD and IDB (2024), 70 percent of LAC countries have no public organization responsible for data leadership and 83 percent lack data inventories.”

• cites OECD and IDB, 2024Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

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The EU AI Act sorts AI systems into risk tiers and applies obligations that scale with risk, from transparency to conformity assessment and market surveillance.

“The European Union's AI Act (European Commission, 2021) represents the most ambitious effort to date.It classifies AI systems by risk level-from minimal to unacceptable-and imposes proportionate obligations, ranging from transparency requirements to full conformity assessments and market surveillance.”

• cites European Commission, 2021Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

May combine two claims.

Clear rules for AI reduce uncertainty and make it easier for new entrants to compete.

“A transparent regulatory framework reduces uncertainty and lowers barriers to entry (Cihon, 2019).”

• cites Cihon, 2019Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

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Some form of interoperability framework exists in 61% of LAC countries, but only 22% exchange all key data categories, and half of national institutions are not connected.

“Although 61 percent of LAC countries have some kind of interoperability framework, only 22 percent exchange all key data categories, and half of national institutions remain outside these systems.”

• cites OECD and IDB, 2024Not matched

  Couldn’t be matched to a paper in Crossref, so it can’t be checked.

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Absent inventories and interoperable systems, Europe-style risk-based regulation cannot be monitored, US-style sectoral coordination cannot work well, and even basic transparency cannot be checked.

“Without inventories and interoperable systems, the risk-based approaches used in Europe become impossible to monitor, the sectoral coordination favored in the United States cannot function effectively, and even basic transparency requirements cannot be verified.”