El Salvador Backs Open-Source AI with New Laws

The government of El Salvador has passed a new law to support the development of artificial intelligence (AI). Earlier today, the country’s National Bitcoin Office confirmed that the law is official. It follows rules and ethical standards already established in the country. This new law is set to help bring AI into different areas while keeping things safe and responsible.

El Salvador Creates A Clear Plan for AI Development

This new law provides clear rules for using and studying AI. It is the first law in the world to focus on open-source AI development. The law works alongside existing rules. This includes the Personal Data Protection Act and the Cybersecurity and Information Security Act, which create a good space for AI growth.

However, if there is ever a conflict between the AI law in El Salvador and the Personal Data Protection Act, the AI law will be the one that takes priority. This means data protection laws will not block AI progress when necessary.

To ensure AI is used correctly, the government will create the National Agency for Artificial Intelligence (ANIA). This agency will make sure AI follows ethical rules and is not used for harmful purposes. ANIA will also keep a record of AI developers to ensure transparency.

El Salvador To Boost Investment and Economic Growth With AI

President Nayib Bukele’s government believes this move will help attract investment and bring new technology to the country. Lawmakers think AI can create more jobs, especially for young people who want to work in technology.

The law protects AI developers from the early stages of research to full production. At the same time, it ensures that AI is not used in harmful ways and sets rules for private and open-source AI models.

One important goal of this law is to use AI to improve public services. The government will set up research centers and AI labs to find ways to use AI for things like managing traffic, monitoring water resources, and improving geothermal energy. These efforts will help make life better for the people of El Salvador.

The law also focuses on education and job training. Schools and universities will get new AI tools to help students learn the skills they need for the future. This will help build a strong AI workforce, making El Salvador an important place for AI development.

Broader Industry Trend 

El Salvador’s AI law is part of a global trend where governments create rules to support and control AI development. 

This comes as experts predicted that agentic AIs are set to bring transformative changes to Web3 this year. Countries like the U.S., those in the European Union (EU), and China are making AI policies that encourage new ideas while ensuring safety.