Uruguay and artificial intelligence: Atlantic trust. Historic opportunity

Dr Antonio Tejeda Encinas | President of the Euro-American Committee of Digital Law - CEA Digital Law | CEO of META Channel Corporation | Technopolitical analyst

Uruguay has taken a historic step by becoming the first Latin American country to sign the Council of Europe’s treaty on artificial intelligence. The decision opens up an opportunity for it to position itself as a trusted partner between Europe and Latin America. The challenge now is to turn that diplomatic gesture into a real legal, business and technological strategy.

On 2 September 2025, Uruguay became the first Latin American country to sign, in Strasbourg, the Council of Europe Framework Convention on Artificial Intelligence and Human Rights, Democracy and the Rule of Law.

It might look like just another diplomatic gesture, but it is not. It is the first time a Latin American country has come into the orbit of a binding international treaty on artificial intelligence. And if the European experience shows anything, it is that digital regulation will be a decisive factor in shaping global power.

The question, then, is not whether the signature matters – it does – but how Uruguay can turn it into a strategic opportunity for itself, for its companies and, by extension, for the whole of Latin America.

Uruguay and Europe: an undisputed reputation

Uruguay comes to this with strengths that cannot be improvised:

• Since 2012 it has held a European Commission adequacy decision on data protection, which remains in force under the GDPR and gives it European recognition in this field.
• It ranks first in Latin America for the rule of law, according to the World Justice Project.
• It enjoys political stability and legal certainty in a region marked by volatility.

That is the solid ground on which the Strasbourg signature rests. Uruguay is not, and does not need to be, the region’s technological powerhouse. What sets it apart is institutional and regulatory trust. And that trust is exactly what Europe looks for in its strategic partners.

The AI Act: the extraterritorial key

The European Union has adopted an artificial intelligence regulation – the AI Act – that does not apply only within its borders. Its scope is extraterritorial: it binds any provider or user whose AI systems are placed on the European market or have an effect there.

This means that Uruguayan companies selling services or products to Europe will fall under the AI Act, even though their country is not part of the EU. It also means that European companies can use Uruguay as a secure platform from which to expand into Latin America, knowing that they are operating in an environment aligned with their regulatory standards.

It should be stressed that these are not equivalent instruments: the Council of Europe treaty is an international framework of principles, open to non-European countries such as Uruguay, whereas the AI Act is an internal EU law with binding force and extraterritorial effect. The connection is clear: Uruguay aligns itself politically with Europe through the treaty, but its companies will, in practice, have to comply with the AI Act if they want to access the European market.

Hence the importance of the signed treaty: Uruguay becomes a trusted Atlantic node, a small country in scale but a large one in regulatory legitimacy.

Opportunity and limits

It would be a mistake to idealise the situation. Uruguay has undeniable legal strengths, but it still lacks a technological innovation ecosystem comparable to those of Brazil, Mexico or Chile.

The key is to embrace its natural role: not as a hub for hard technology transfer, but as a corporate and regulatory hub. A place where companies can set up, sign contracts, structure operations and ensure compliance with international standards without unpleasant surprises.

Becoming that trusted centre requires three steps:

1. Ratify the treaty in Parliament.
2. Accelerate the implementation of the National AI Strategy 2024–2030.
3. Strengthen institutional and training capacity to support companies and investors.

From political gesture to practical action

The signing in Strasbourg puts Uruguay in a privileged position, but the real challenge is not played out on the diplomatic stage. It lies in the ability to turn international commitments into operational frameworks that give certainty to governments and investors.

Europe needs partners in the region who understand the rigour of its rules – from the AI Act to the GDPR – and who also know how to translate them into local practice. Latin America, for its part, needs counterparts who not only open doors in Brussels but also ensure that every contract, every project and every data flow rests on solid legal foundations.