Paraguay kicks off AI regulation debate with focus on data protection, sovereignty

Paraguayan lawmakers started debating how to regulate the implementation and use of artificial intelligence (AI) with a focus on data protection and sovereignty issues.

AI was addressed during a public hearing in the senate, headed by senators José Oviedo and Yolanda Paredes. 

The senate approved the creation of a working group to analyze AI projects and processes, including studying experiences in neighboring countries, to prepare the terrain for legislative proposals.

Among the main points raised during the hearing was the need to protect personal data while avoiding regulation that hinders innovation. 

Juan Ardissone, deputy minister at ICT ministry Mitic, said existing technology could serve to enhance government projects but it is necessary “to develop our own tools to guarantee the appropriate use and protection of private data.”

Regulations should be aimed at fostering the development of the country's own infrastructure and capabilities, said Luis Benítez, a representative of Paraguay’s recently created AI society.

“There are infrastructures, but they are private. If the State is seriously going to address public policies aimed at artificial intelligence, within public institutions, it must be with its own infrastructure,” said Benítez.

Public policies should focus on "the production of technologies, not only their consumption," said Alejandrino Acuña, general director of science and technology at the education and science ministry.

“All platforms operate freely in our country; they use our data and we do not regulate them. We must discuss how to produce our technologies and teach the citizens about it,” added Acuña.

Edgar Arguello, head of communications at the defense ministry, said the State needs to play a key role in protecting critical data in the future regulation of AI.

According to a recent IDB-backed report, private investment in AI applications and infrastructure reached US$8.2bn in Latin America last year, while amounting to US$190bn worldwide.

IDB's first Latin American index on AI 'readiness' shows that Paraguay has much work to do on this front.

The overall ranking is led by Chile, with a score of 72.67 out of 100, followed by Brazil (65.31), Uruguay (54.99), Argentina (54.76), Mexico (48.55), Colombia (47.62), Peru (45.55), Costa Rica (33.41), Panama (24.66), Ecuador (22.17), Paraguay (18.82) and Bolivia (15.10).