Chile, Brazil and Uruguay lead the region in AI readiness, according to the 2025 Latin American AI Index. None of the large markets has an AI-specific law in force yet, but Brazil and Chile are both debating risk-based bills, and data-protection rules already apply today: Mexico replaced its law in March 2025 and Chile's new one takes effect in December 2026.
What you need to know
- Leaders: Chile (70.56), Brazil (67.39) and Uruguay (62.32) top the 2025 index of 19 countries. 1
- Brazil: the AI bill passed the Senate in December 2024 and is still in the Chamber of Deputies. 2
- Chile: its AI bill passed the Chamber in October 2025; a new data-protection law takes effect on 1 December 2026. 3 4
- Data protection, not AI law, is what applies to your product today.
Which countries lead in AI?
The Latin American Artificial Intelligence Index (ILIA), produced by Chile's national AI centre CENIA with the UN's economic commission for the region, scores 19 countries on more than 100 indicators across three areas: enabling factors, research and adoption, and governance. 1
| Country | ILIA 2025 score | What stands out |
|---|---|---|
| Chile | 70.56 | First in the region; leads in private AI investment per capita 1 |
| Brazil | 67.39 | The largest market; strong technical infrastructure 1 |
| Uruguay | 62.32 | Computing infrastructure per capita and talent policy 1 |
The index groups these three as pioneers. For a company choosing a first market, that usually means Brazil for size and Chile or Uruguay for a smaller, more advanced test market.
Is there an AI law you have to comply with?
Not yet in the large markets, but two are close.
Brazil. Bill PL 2338/2023, the proposed legal framework for AI, takes a risk-based approach with obligations on transparency, risk assessment and accountability. The Senate approved it on 10 December 2024. It has been in a special committee of the Chamber of Deputies since 2025, and the plenary vote has been postponed more than once; as of September 2026 it had not been voted. 2
Chile. Bill 16821-19 classifies AI uses as unacceptable, high, limited or no evident risk, bans some practices and sets incident-reporting duties. The Chamber of Deputies approved it on 13 October 2025 and sent it to the Senate. 3
Mexico has no AI-specific bill at that stage. What it did change is data protection.
What applies today: data protection
An AI product processes personal data, and that is regulated now in every large market.
1. Brazil: the general data-protection law (LGPD, Law 13,709 of 2018) applies, enforced by the national authority ANPD. 2. Mexico: a new Federal Law on the Protection of Personal Data held by private parties was published on 20 March 2025 and took effect the next day, moving oversight from the former transparency institute to the Ministry of Anti-Corruption and Good Governance. 5 3. Chile: Law 21,719, published on 13 December 2024, takes effect on 1 December 2026 and creates a data-protection agency with powers to investigate, fine and suspend processing. 4
If your product trains on, stores or generates personal data from users in these countries, map it against these three laws before launch. It is cheaper than retrofitting consent flows and data-transfer terms later.
How to sequence a launch
1. Localise for real. Brazil works in Portuguese, the rest of the region in Spanish, and users notice machine-translated interfaces. 2. Price in local currency with local payment methods. A card-only subscription loses a large share of buyers in Brazil and Mexico; see our guide on payment rails. 3. Start where the buyers are. Enterprise AI sales in the region run through relationships, and the first ten customers usually come from introductions, not inbound. 4. Work with the research community. Universities and national AI centres are where the technical talent and the early adopters meet.
AI companies arrive worried about an AI law that is not in force yet, and underprepared for the data-protection law that already is. Start with the one that can fine you this year.
What this guide does not cover
It does not cover sector rules (health, finance, employment) that add their own requirements to AI use, copyright and training data, or public-sector procurement. It does not replace legal advice on whether a specific product falls into a high-risk category under either bill.
Frequently asked questions
Does Brazil have an AI law?
Not yet. Bill PL 2338/2023 was approved by the Senate on 10 December 2024 and is still under review in the Chamber of Deputies. Until it passes, the general data-protection law (LGPD) is the main rule that applies to AI products handling personal data.
Which Latin American country is most advanced in AI?
Chile, with 70.56 points in the 2025 Latin American AI Index, followed by Brazil with 67.39 and Uruguay with 62.32.
When does Chile's new data-protection law apply?
Law 21,719 was published on 13 December 2024 and takes effect on 1 December 2026, when the new data-protection agency starts operating.
What changed in Mexico's data-protection law?
A new federal law for personal data held by private parties was published on 20 March 2025 and took effect on 21 March, replacing the 2010 law and moving oversight to the Ministry of Anti-Corruption and Good Governance.
Where should an AI company launch first?
Brazil if you need scale, Chile or Uruguay if you want a smaller, more advanced market to test in. In either case, localise the product and support local payment methods from the start.
Related guides
- How the instant payment rails in Latin America work
- LATAM developer hubs and what they cost
- How to hire your first country manager in Latin America
Sources
- CENIA and ECLAC (CEPAL), Índice Latinoamericano de Inteligencia Artificial (ILIA) 2025, and CENIA press release of 3 October 2025
- Senado Federal, PL 2338/2023 record; Câmara dos Deputados, Special Committee on PL 2338/23; DIAP, report on the postponed vote, 2026
- IAPP, “Se aprueba en primer trámite constitucional el proyecto que regula los sistemas de IA en Chile” (Bill 16821-19), October 2025
- Biblioteca del Congreso Nacional de Chile, Ley 21.719 (published 13 December 2024)
- Diario Oficial de la Federación, Ley Federal de Protección de Datos Personales en Posesión de los Particulares, 20 March 2025