El Salvador Advances AI and Robotics Policy with First-of-Its-Kind Law in Latin America

by | Jun 27, 2025 | FDI Latin America

The adoption of a robotics law could make El Salvador the first country in the world to do so

Salvadoran lawmakers have advanced AI and robotics policy in Latin America and around the world with a new initiative to regulate artificial intelligence and robotics. On February 28, the country’s Legislative Assembly approved the Artificial Intelligence Law, which sets the legal and regulatory foundation for the responsible adoption and use of AI technologies.

At the same time, the National Bitcoin Office of El Salvador (ONBTC) has also drafted a proposed Robotics Law, which could make the small Central American country the first in the world to regulate the use and development of physical AIs. The Robotics Law and the Artificial Intelligence Law are landmark initiatives that signal a major technological transformation for El Salvador.

The AI Law as It Stands

The Artificial Intelligence Law was approved by the Salvadoran legislature at the end of February and is expected to be put in place in the coming months, according to an official statement by the country’s National Bitcoin Office (ONBTC). ONBTC describes the legislation as “bold and progressive” and states that it is intended to make AI a practical part of the Salvadoran economy as soon as possible.

The new legislation will set out guidelines and standards for AI use in multiple sectors, including electric power, transportation, and national security. The AI law, which was spearheaded by ONBTC, provides a legal and institutional basis for the rapid and safe adoption of AI.

ONBTC has stated that the law, among other things, “aims to regulate the use and development of Artificial Intelligence with the goal of promoting its use for the benefit of Salvadoran society.” The law goes even further, ONBTC says, with a view to “permitting a rapid and responsible” adoption of AI across multiple sectors.

In March, Salvadoran government representatives, led by President Nayib Bukele, highlighted the advancement of AI and the broader technology sector as critical national priorities while also laying out steps to speed the adoption of AI. Among other things, the law will also establish an institutional framework, ONBTC said, as well as “research centers such as the development of intelligence laboratories and research centers” and the creation of a National Artificial Intelligence Agency (ANIA) that will, among other things, be responsible for monitoring compliance with the law.

The New AI Law Explained

El Salvador advances AI and robotics policy with the new AI Law, which has the following elements and key points:

Purpose. The law makes it clear that AI technologies must be applied for the public good and in a responsible way. “The purpose of this law is to regulate the use and development of Artificial Intelligence with the goal of promoting its use for the benefit of Salvadoran society, facilitating a rapid and responsible adoption,” the ONBTC explained in an official statement.

Scope. The law covers the use and development of artificial intelligence for both private sector and state actors. “Artificial intelligence is used and developed both by the State and by the private sector,” the law reads, adding that AI will be applied in government operations, including electricity distribution, electric transportation, and national defense and security.

Research and Standards. The law calls for the creation of “centros de investigación e inteligencia artificial” (research centers and artificial intelligence centers) and the development of a legal entity called the National Artificial Intelligence Agency (ANIA) to manage and monitor compliance with the law. ANIA will also facilitate compliance with other national standards and global best practices.

Permitting. Licenses will be required for AI development and application in a broad range of operations. The law also calls for ANIA to “regulate the authorization, supervision, control, and revocation of intelligence laboratories, research centers and/or centers dedicated to research, development, and experimentation of Artificial Intelligence, as well as those that have them as a support function.”

Expectations for the Robotics Law

El Salvador advances AI and robotics policy in a potentially groundbreaking way by also seeking to adopt a specific Robotics Law that, if passed by the Salvadoran legislature and put in place, would regulate the development and use of physical robots or AI entities.

According to the country’s ONBTC, the robotics law is intended to create a “clear, ethical and transparent” regulatory framework for the deployment of physical AI. “Physical AI refers to any form of intelligence that has a material dimension, such as drones, robots, or androids that may be used to interact with the environment or people,” ONBTC said, adding that the robotics law will be enacted before wide-scale commercial deployments of physical AIs.

The Onus is on El Salvador

Salvadoran lawmakers are taking an ambitious and risk-ready approach to AI regulation, and one that would, if successful, put the country at the very forefront of innovation. At this stage, the country already leads on AI policy in Central America and the wider Latin American region, having taken steps to make Bitcoin legal tender and create a robust infrastructure for its adoption.

El Salvador advances AI and robotics policy in a very significant way by taking steps to legislate its use. The development of AIs in all their forms, including the so-called “strong AIs,” is proceeding at a fast pace and will almost certainly be widespread before we realize it. Instead of waiting until then, El Salvador is regulating them before that happens and showing regional leadership in AI.