FIPRA Network: Mastering Public Affairs in Latin America’s Digital Landscape

As the global digital landscape evolves, countries across Latin America are grappling with the challenges posed by emerging technologies such as artificial intelligence (AI), cybersecurity, and data privacy. FIPRA Network organised an insightful webinar, “Mastering Public Affairs in Latin America’s Digital Landscape” on Thursday, 17 October 2024 to discuss diverse regulative approaches to align with international standards and promote innovation and attract foreign investment. We welcomed leading public affairs experts from LatAm region, including:

GONZALO ARAUJO – COLOMBIA

Orza has developed a predictive tool that enhances its analysis of digital-related bills, using legislative data dating back to 1992 to predict the probability of each initiative becoming law. The tool provides valuable support to human analysis by calculating the likelihood of success for each bill, enabling stakeholders to prioritise their focus and resources more effectively.

The legislative process around AI and cybersecurity remains complex and slow-moving. Several draft bills have been introduced in Congress, but none have a high probability of passing, with no bill exceeding a 50% chance of becoming law. Much of the regulatory focus is guided by international examples, particularly from the EU, as Colombia looks to align its approach with global standards, such as the "Brussels effect" influencing AI and ethics discussions.

Cybersecurity, however, is gaining urgency due to recent cyberattacks on the Ministry of Health and the electoral authority. Colombia is also focused on regulating digital spaces to combat human trafficking, especially concerning the online safety of children and adolescents. Despite these efforts, much of regulatory framework remains in development, with significant opportunities for public policy influence.

JUAN MAURICIO MORA – MEXICO

Mexico’s digital agenda has undergone a significant shift under the new administration. Lopez Obrador’s digital policy largely focused on expanding connectivity, with little attention given to broader digital issues, leaving gaps in areas like cybersecurity, which came to the forefront following a major military data breach two years ago. This breach exposed sensitive government information, including personal details about the president’s health, leading to a national outcry. In response, there were attempts to pass cybersecurity bills in Congress, but none were legislated before the end of the term.

Now, with a new president in office and a fully revamped Congress, both the Senate and the House have undergone complete turnover. Sheinbaum administration, with a strong mandate in both chambers, is keen to draft its own laws, signalling a departure from the previous administration’s priorities. This shift in legislative focus promises a more comprehensive approach to digital governance, including AI, cybersecurity, and data protection.

As part of this digital transformation, the government is also advancing plans to implement a national digital ID system. Building on the success of a similar program in Mexico City, this initiative aims to streamline access to government services nationwide and enhance the country’s digital infrastructure. By creating a unified digital identity for citizens, the system will simplify processes for both individuals and businesses, while also fostering a more investment-friendly environment through improved bureaucratic efficiency.

FEDERICO JENKINS – COSTA RICA AND PANAMA

Costa Rica’s 2022 cyberattack, carried out by a Russian hacker group, exposed vulnerabilities in its government systems, including the Ministry of Finance and Social Security. With critical services crippled, Costa Rica refused ransom demands and relied on support from transnational companies like Microsoft and Intel, as well as a $25 million donation from the U.S. government. In response, the country developed a national cybersecurity strategy and adopted an “intelligent follower” approach—learning from international best practices in areas like cybersecurity and AI, including drafting an attempted AI bill using ChatGPT.

Panama, as a strategic logistics hub with the Panama Canal and COPA Airlines, faces its own cybersecurity challenges due to its critical position in global trade. The country is focused on passing legislation to regulate AI and enhance cybersecurity, but it must ensure its legal framework aligns with international standards to protect its digital infrastructure. As both countries aim to strengthen their digital resilience, Panama’s role as a key regional player adds pressure to develop robust cybersecurity and data protection measures.

Both Costa Rica and Panama are leveraging their strategic positions to attract foreign tech investment, especially with incentives like the U.S. Chips Act encouraging nearshoring. However, they must balance this ambition with building digital infrastructures capable of withstanding future cyber threats and supporting emerging technologies like AI.

DIEGO BERNALES – CHILE

Chile is one of leaders in digital transformation in LatAm, with high internet penetration and widespread access to digital services. However, its regulatory framework has struggled to keep pace. In 2024, Chile passed three key regulations: a cybersecurity framework, recognition of digital public services, and a data protection law modelled on the GDPR. The new laws apply equally to both large and small companies, with steep fines for non-compliance, regardless of company size. Chile has also introduced a comprehensive AI regulation that aligns with international standards, though the challenge now is enforcing these laws effectively across industries.

The introduction of these regulations creates significant business opportunities. Advanced cybersecurity solutions are in high demand as companies work to comply with the new rules, and there is growing interest in services related to 5G deployment and IoT solutions. Digital transformation efforts, such as improving government services and expanding the country’s data centre capacity, are also key areas of focus.

Chile’s IT market is poised for growth, particularly in areas such as AI tools, big data solutions, and decision-making support technologies. As businesses navigate new compliance requirements, there is an increasing need for companies that can provide the necessary expertise to meet these challenges, making Chile an attractive market for tech investment and collaboration.

COMMON THEMES ACROSS THE REGION

Please feel free to contact any of our panellists for more information!