Mexico City March 5th, 2024.
This Tuesday, February 27, 2024, Senator Ricardo Monreal, of the Morena political party, presented a bill entitled “Federal Law Regulating Artificial Intelligence”. The bill includes, among others, the following provisions:
a) The bill provides extraterritorial effect, so the law would be applicable even to providers of Artificial Intelligence Systems (AIS) located abroad that offer services in Mexico or whose information generated is used in Mexico.
b) The regulator in charge of authorizing AIS providers will be the Federal Telecommunications Institute (IFT, in its Spanish acronym). In addition, the bill proposes the creation of a National Artificial Intelligence Commission, as an advisory body to the IFT, which will be formed by scientists.
c) The bill proposes to classify AIS according to the risks they may trigger, similar to the European Union (EU) regulation. The risk classifications proposed are: «Unacceptable Risk», «High Risk» and «Low Risk», and each classification will have certain particularities.
d) Prior authorization from the IFT will be required to offer AIS in Mexico, even in those cases where AIS is offered free of charge. e) The bill establishes as a penalty for non-compliance up to 10% of the annual income of the infringing entities.
This bill joins the international trend that seeks to regulate the use of Artificial Intelligence, although it is not the first effort in Mexico in this regard. There are important international precedents in this area, such as the “Executive Order for the Safe, Secure and Reliable Development of Artificial Intelligence” issued by the President of the United States of America, the bill to regulate artificial intelligence in Chile and the “Artificial Intelligence Law” proposed in the EU.
The bill presented by Senator Monreal is greatly inspired by the EU and Chile proposals. Additionally, this bill establishes a regulatory framework based on authorizations and fines that could have an important effect on the development and commercialization of AIS in Mexico.
The area of information technology and data protection of our firm is at your service.
SINCERELY:
Adolfo Athié Cervantes
aathie@basham.com.mx
Renata Denisse Buerón Valenzuela
rbueron@basham.com.mx
Erika Itzel Rodríguez Kushelevich
erodriguez@basham.com.mx
Ivan Garcia Argueta
igarcia@basham.com.mx
