Latin America and the withdrawal of the European directive: follow the model or chart its own course?

The European Union’s withdrawal of the proposed AI Liability Directive does more than signal a shift in the bloc’s regulatory strategy. It also sends a clear message to the rest of the world: regulating artificial intelligence is a complex challenge, shaped by economic, political and geopolitical factors.

For Latin America, the decision poses a crucial dilemma: should the region adopt a model similar to Europe’s, or develop its own framework, one that balances innovation with the protection of fundamental rights without undermining its competitiveness?

So far, the region has followed two main paths: adopting Europe-inspired regulation, or having no clear rules at all, which leaves AI development in a legal vacuum fraught with uncertainty. Given its economic circumstances and the lack of an established regulatory infrastructure, however, Latin America needs a strategic approach that reflects its own reality.

Latin America is at a significant disadvantage in AI investment compared with the US, China and the EU. Although there are initiatives such as the partnership between Adigital and the Inter-American Development Bank (IDB) to foster technological development, the region still lacks the funding and infrastructure it needs to compete globally.

Adopting European regulatory frameworks without taking account of the region’s cultural, economic and social particularities could result in ineffective rules. Latin America needs regulation designed specifically for its context, rather than foreign models that do not fit its needs.

Regulating AI requires specialised bodies and enforcement capacity, something that many countries in the region have yet to develop fully. Without a solid framework to oversee implementation, any regulation risks remaining on paper, never effectively enforced.

Some countries might opt for minimal regulation to attract AI investment, which could open the door to technological exploitation and leave citizens unprotected. Light-touch regulation may appeal to the private sector, but it can also create an environment in which companies operate without adequate accountability mechanisms.

Far from being merely a challenge, this situation is also an opportunity for Latin America to design its own regulatory model: one that not only encourages innovation but also ensures inclusive development tailored to the region’s needs.

At the Euro-American Committee of Digital Law - CEA Digital Law and Meta Channel Corp, we are driving a strategy that balances regulation and competitiveness, building bridges between academia and business to offer regulatory and strategic solutions tailored to Latin American realities.

Through our collaboration, we promote:

Regulatory frameworks tailored to local realities, which encourage innovation without sacrificing the protection of fundamental rights.

AI training programmes, to close the knowledge gap and strengthen the region’s technical capacity.

Pilot projects that demonstrate the potential of AI applied to Latin American problems.

Ethical and governance standards that reflect the region’s specific values and needs.

Knowledge transfer between Europe and Latin America, accelerating the responsible adoption of AI.

The world is rewriting the rules of the game in artificial intelligence, and Latin America cannot afford to be left on the sidelines. The EU’s withdrawal of the AI Liability Directive confirms that regulating AI is a complex challenge and that each region must find its own approach.

To do so, Latin America needs:

A regulatory framework of its own that balances the protection of rights with the promotion of innovation.

Investment in infrastructure and technological development, to reduce dependence on foreign solutions.

Greater regional coordination, to avoid fragmented rules that limit cooperation and the growth of the AI sector in the region.

A pragmatic and flexible approach that learns from the EU’s mistakes and successes without replicating them automatically.

The question is no longer whether Latin America should regulate AI, but how to do so strategically. The EU’s decision offers a clear lesson: copying external models is not enough. It is time for Latin America to design its own path.

At the Euro-American Committee of Digital Law - CEA Digital Law and Meta Channel Corp, we are committed to leading this process and to ensuring that Latin America is not just a consumer of AI, but also a creator of solutions that respond to its own challenges and opportunities.