Chile delays data law as AI bill advances

The Chilean government has proposed delaying enforcement of Personal Data Protection Law 21.719 by 12 months, while the new Data Protection Agency still lacks its three appointed councilors and full operating capacity. At the same time, the AI bill remains under Senate review and could still change before its final version, with obligations that reach companies and agencies operating systems in Chile, even if the models were developed or hosted outside the country.

Why is the data law being delayed?

The debate centers on the fact that the agency meant to oversee the new regime is not yet ready to operate. David Díaz, an academic at the Faculty of Economics and Business at the University of Chile, warned that the body could take up to a year to become operational after formal creation, given the time needed to appoint councilors, set up teams, and issue secondary regulations.

That same view was echoed by the University of Chile's FEN, which said that, just months before the planned entry into force, the agency still does not have its three councilors appointed or full operating capacity. Arco Legal described the delay as a sign of structural problems, not a real fix, and said the extra year by itself does not solve technical capacity or governance gaps.

What are the arguments in favor of the delay?

A column distributed through MSN Chile described the move as necessary and responsible, arguing that the Data Protection Agency does not yet exist as an operational body. From that perspective, requiring compliance under threat of fines without an agency to guide and interpret the rules would create legal uncertainty and the risk of arbitrary enforcement for companies and public services.

What is the current status of the AI law?

The AI bill is still moving through the legislative process and, according to the doctrinal analysis cited by Lawwwing, could still undergo significant changes during parliamentary debate. The measure is being handled in the Senate and is meant to establish risk assessment, traceability, and reporting obligations for high-impact AI systems.

That design also applies to operators in Chile of models developed or hosted abroad. In comments published by La Tercera, the bill was described as including reports, traceability, and bias assessments for those running such systems in the country, introducing technology compliance and transparency requirements for providers and corporate users.

Lawwwing added that this could force companies to review contracts with cloud providers and foundation model vendors, since the obligations are not limited to local development. The regulatory scope is already putting pressure on how tech companies and public agencies manage their AI tools while the legislative debate remains open.