El Salvador has introduced a groundbreaking Artificial Intelligence (AI) law to foster innovation, particularly emphasizing open-source AI development.
The legislation that is approved on February 28, 2025, positions the country as a global leader in AI policy and innovation.
The law is the first globally to provide explicit legal protections for open-source AI models while also safeguarding proprietary systems. It establishes regulatory clarity and ensures protections against third-party misuse, creating a safe environment for innovation.
The National Agency for Artificial Intelligence (ANIA) is a newly established government body in El Salvador, which will oversee AI activities, enforce ethical standards, and manage the National Registry of AI Development to ensure transparency and compliance.
Dedicated facilities will be established to explore AI-driven solutions for public services like traffic management, water resource monitoring, and geothermal energy optimization. These centers will also support education and workforce training with cutting-edge resources.
To attract investment and foster innovation, the government has implemented a zero-tax policy for AI development and research.
The law includes sandbox protections, liability exemptions for unintended AI-generated errors, and intellectual property rights retention for developers. It also prioritizes open-domain data usage while ensuring ethical standards.
The Nayib Bukele administration sees this initiative as a way to boost economic growth, attract investment, and position the country as a hub for AI research and development.
By integrating AI into key sectors and prioritizing education, the country aims to unlock new opportunities for its citizens while setting a global precedent in AI governance.
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