Lawmakers Propose AI Regulation Through Data Protection Law
A federal representative has introduced a legislative initiative aimed at reforming the Federal Law on the Protection of Personal Data Held by Private Parties to regulate AI. This proposal establishes a mandatory framework for all individuals and corporations that develop, commercialize, or interact with these technologies in Mexico.
The Need for Regulation
The initiative addresses a significant legal vacuum that currently allows automated learning models to process sensitive information without specific oversight. The representative emphasizes the necessity for Mexico to transition toward a structured regulatory environment that aligns with international standards, thereby protecting the integrity of its citizens.
According to the representative, “With this reform, the Mexican State assumes its responsibility for technological leadership without sacrificing human rights.” This statement underscores the need for any AI system operating within national borders or affecting Mexican citizens to adhere to established parameters of legality and ethics.
Global Context and Current Challenges
In recent years, the global landscape for AI governance has shifted toward stricter oversight. To date, 144 countries have implemented privacy regulations to manage the complexities of algorithmic processing. However, in Mexico, algorithms and machine learning models operate without specific limitations, creating significant risks for data privacy and corporate accountability.
The Transparency and Anticorruption Commission reports that the lack of a clear legal framework exposes users to potential abuses concerning the final destination of their information. Since AI systems rely on vast volumes of personal data as their primary input, they have become prime targets for cyberattacks. The absence of specific rules in the current legislation means that companies often operate under a patchwork of general guidelines that do not adequately address the unique capabilities of autonomous reasoning and automated decision-making.
Technical Framework of the Reform
The proposed initiative seeks to modify Article 1 and add Fraction XXI to Article 2 of the LFPDPPP. These changes aim to make data protection provisions mandatory for all entities—whether national or foreign—that engage with AI systems within Mexico. By legally defining these systems, the reform removes the ambiguity that has previously allowed technology companies to bypass strict data handling protocols.
Under the new definition, an AI System is described as a set of models and algorithms designed for learning, reasoning, and automated decision-making processes that involve the processing of personal data. This technical categorization is crucial for B2B providers offering Software as a Service (SaaS) or Infrastructure as a Service (IaaS) solutions, as it clarifies which automated processes fall under the jurisdiction of Mexican regulators.
Implications for the Corporate Sector
The proposal emphasizes that AI systems are increasingly central to global information processing and, consequently, to global risk. The representative cites international incidents, such as the Cambridge Analytica scandal, to illustrate how unregulated data usage can manipulate social and democratic processes. For the corporate sector, this serves as a reminder that data processing is not merely a technical task but a core compliance pillar.
The reform intends to foster a shift toward “Privacy by Design.” Companies will need to implement internal audits and ethical guidelines to ensure their algorithms do not infringe upon the privacy of Mexican users. This design will be critical in areas such as automated credit scoring, financial profiling, algorithmic recruitment, predictive analytics in healthcare and insurance, and large-scale data processing for marketing and consumer behavior analysis.
Next Steps and Conclusion
If the Chamber of Deputies approves this reform, Mexico will join the ranks of the 144 countries that have modernized their privacy laws. The next step for the private sector will involve reviewing existing AI deployments to ensure they align with the proposed legal definitions.
Ultimately, the Transparency and Anticorruption Commission suggests that the Mexican State must lead in technological vanguardism while maintaining a human-centric approach.
