El Salvador Pioneers AI Law for Innovation and Growth

El Salvador has taken a significant step towards fostering innovation and technological growth by introducing a new artificial intelligence (AI) law. The legislation, approved on February 28, aims to integrate AI into key sectors while maintaining data security and ethical standards.

The new legal framework establishes clear guidelines for AI research and application, making it the first national law to prioritize open-source AI development. It builds on existing regulations, such as the Personal Data Protection Act and the Cybersecurity and Information Security Act, to create a structured environment for AI advancement.

However, the AI law specifies that in the event of any conflict, the AI Law will take precedence over the Personal Data Protection Law. This means that while the AI law works alongside data protection legislation, it will override the Data Protection Act where necessary to facilitate AI development.

The Nayib Bukele-led government sees this initiative as a strategic step towards attracting investment and technological growth. The country’s lawmakers believe that by embracing AI, the government can unlock new economic opportunities, particularly for young professionals eager to contribute to the evolving digital landscape.

The law provides legal certainty for AI developers, ensuring protection from early-stage experimentation to full-scale implementation. It also introduces safeguards against the misuse of AI technologies while addressing proprietary and open-source models.

A key focus of the legislation is promoting AI research by establishing dedicated laboratories and innovation centers. These institutions will explore AI-driven solutions for public services, including traffic management, water resource monitoring, and geothermal energy optimization. The goal is to enhance the country’s infrastructure and improve the quality of life for its citizens.

Additionally, the framework prioritizes education and workforce training by equipping institutions with state-of-the-art AI resources. This initiative aims to build a strong domestic AI talent pool, positioning El Salvador as an AI research and development hub.

Meanwhile, the law mandates the creation of the National Agency for Artificial Intelligence (ANIA) to ensure compliance with ethical standards. This agency will oversee AI regulation and enforce guidelines to prevent misuse. ANIA will also manage the National Registry of Artificial Intelligence Development, a system designed to track AI developers and ensure transparency in the sector.