By St. Pauls News Team
June 14 2026 | International
As artificial intelligence continues to reshape economies, industries, and public services around the world, governments across Latin America and the Caribbean are facing a critical question: how can states build the institutional capacity needed to govern a technology that is evolving at an unprecedented pace?
Several countries in the region have already begun taking action. El Salvador and Peru have enacted AI-related legislation, while nations such as Brazil, Chile, and Colombia are developing regulatory proposals. Meanwhile, the Inter-American Development Bank (IDB) has advanced recommendations for a regulatory framework that balances technological innovation with the protection of fundamental rights.
However, experts argue that passing legislation is only part of the solution.
The greater challenge lies in creating institutions capable of implementing, supervising, and adapting AI policies as technology continues to advance. Governments must be equipped to oversee AI development, coordinate with technical experts, engage with private industry and academia, and update regulations quickly when necessary.
Spain’s experience is increasingly being viewed as a valuable case study for the region.
Spain’s AI governance journey began in 2020 with the creation of the Secretariat of State for Digitalisation and Artificial Intelligence (SEDIA) and the launch of its National Artificial Intelligence Strategy (ENIA). The initiative was supported by €600 million from the country’s post-pandemic Recovery, Transformation, and Resilience Plan.
Over the years, Spain’s institutional framework evolved through several restructurings, including the establishment of a dedicated Ministry for Digital Transformation and Civil Service. New directorates focusing on artificial intelligence and data governance were also created to strengthen oversight and coordination.
What distinguishes Spain’s approach is not simply its organisational structure, but the broader ecosystem built around it.
The country established a network of public agencies, investment entities, and advisory bodies that provide technical expertise, financing, project management, and strategic guidance. This ecosystem allows the state not only to regulate AI but also to actively support innovation and development.
In 2023, Spain became the first member state of the European Union to establish a dedicated AI supervisory authority, the Spanish Agency for the Supervision of Artificial Intelligence (AESIA). The agency became operational in 2024 and launched Europe’s first AI regulatory sandbox, a controlled environment where companies can test AI systems under regulatory supervision before laws are fully implemented.
Significantly, Spain established the agency before the European AI Act was finalized, demonstrating a proactive approach to institutional readiness.
The country’s experience also highlights the need for flexibility. Spain’s original AI strategy, developed in 2020, predated the emergence of generative AI technologies. By 2024, the strategy required substantial revisions, including support for the ALIA language model and a new €1.5 billion investment package.
For Latin America and the Caribbean, several key lessons emerge.
Experts recommend that governments begin building institutions early, even if initial structures are imperfect. Designating a lead AI authority with a clear mandate, budget, and coordination powers can provide a strong foundation.
Finally, policymakers should build adaptability into their frameworks through periodic reviews, flexible mandates, and testing environments such as regulatory sandboxes.
As the IDB continues to support countries across the region in strengthening digital governance, one message is becoming increasingly clear: governing artificial intelligence is not a one-time legislative exercise. It is a long-term institutional process that requires continuous learning, adaptation, and investment to ensure that innovation serves the public good.