Experts Push AI Regulation in Mexico to Safeguard National Data

Technology and academic specialists are urging Mexico to establish a regulatory framework for AI. The central proposal is for this regulation to transcend consumer protection and follow national sovereignty and geopolitical strategy principles. The push is being driven by recent investment in data center infrastructure within the country, particularly in the Bajio region. 

“We have to start discussing this regulation now… With the massive establishment and investment in data centers, particularly in Queretaro, the legislation and regulation of AI and all the technology that enables it becomes relevant,” says Fernando SantaCruz, Founder and Head of AI and Automation, Adivor Consulting Toronto. He suggests that the treatment, storage and processing of data on national territory should be considered a strategic asset. 

The debate over AI regulation is not unique to Mexico. Since the emergence of Generative AI in 2022, major world powers have adopted divergent regulatory models. The United States, for example, maintains a policy of minimal or zero regulation to prioritize innovation and technological development, says Pedro Salazar, Researcher at the Institute of Legal Research, Universidad Nacional Autónoma de México (UNAM). The European Union is following a risk-based approach with a strong emphasis on protecting fundamental rights such as privacy and personal data security, he adds. Meanwhile, China approaches regulation with an explicit geopolitical strategy, using it as a tool to achieve its goal of consolidating leadership in the sector by 2030, says Salazar.

Mexico is at an inflection point. Although legislative initiatives have been presented since 2020, the country still lacks a national AI strategy or a consolidated legal framework. The decision on which model to adopt is a strategic challenge, especially considering potential tensions that could arise during the renegotiation of the USMCA if Mexico opts for stricter controls than its commercial partners.

The call to regulate AI in Mexico is based on the need to treat it as a pillar of national sovereignty. The focus should be on "where the data is stored and what treatment it is given," says SantaCruz.

A national strategy must focus on "customizing AI for our culture, our context, and our needs," says Frida Ruh, Co-Founder, Wavy Node. This approach seeks to mitigate dependence on large technology corporations like Google, Microsoft, and OpenAI, and to foster a local innovation ecosystem.

To create an effective legal framework, Salazar proposes that any AI law in Mexico be built on three fundamental pillars:

• Ethics and Transparency: Ensure algorithms are auditable, explainable and free of bias to prevent discrimination and promote fairness.

• Personal Data Protection: Guarantee the security and privacy of the information that feeds AI systems, in line with individual rights.

• Oversight and Accountability: Establish clear accountability mechanisms to prevent abuse, assign responsibilities and redress potential damages.

Without adequate regulation, tangible risks could worsen structural problems in the country.