El Salvador Backs Open-Source AI Development

The government of El Salvador has enacted the “Law on the Promotion of Artificial Intelligence and Technologies,” aimed at fostering innovation through regulation, reports El Mundo.

The legislation calls for the establishment of an AI laboratory and data centers under the supervision of a new national agency, the Agencia Nacional de Inteligencia Artificial (ANIA).

The agency will maintain a national registry of developers and projects, which will receive various benefits. These include exemptions from liability for misuse of tools by third parties or for conducting experimental research.

The law prohibits restrictions on free competition in AI development but mandates the “ethical and responsible” use of systems. Its provisions take precedence over data protection laws.

El Salvador’s Bitcoin Office highlighted that the regulation places special emphasis on protecting open-source developments.

?? EL SALVADOR PASSES PIONEERING AI LAW

In alignment with President Bukele’s policy of economic liberty, the government of El Salvador has passed AI legislation designed to provide both regulatory clarity and certainty for the industry, including for the development and…

— The Bitcoin Office (@bitcoinofficesv) February 28, 2025

“Proprietary models will continue to benefit from existing international protections, but this bill marks the first time a state has explicitly extended legal guarantees to open-source projects,” the organization emphasized.

According to Deputy Samuel Martinez, this approach will allow developers from any country to contribute to AI development in El Salvador.

In 2023, the country’s authorities introduced 15-year tax incentives for technology sector companies.