Puerto Rico Senate Introduces Significant Artificial Intelligence Legislation, Potentially Opening Doors for Business Collaboration in 2025 and Beyond
Puerto Rico’s Senate unveiled AI-focused laws, fostering government efficiency, ethical AI use, and business collaboration. Key measures include an AI Officer, Strategic Investment Fund, and transparency rules, positioning Puerto Rico as a regional AI hub.
Puerto Rico Senate Introduces Significant Artificial Intelligence Legislation
In January 2025, the Senate of Puerto Rico introduced a series of, what they call “forward-looking bills” that address the development, implementation, and regulation of artificial intelligence (“AI”). These legislative measures, which span multiple sectors, reflect the growing significance of AI technologies on the Island and signal a promising future for AI in Puerto Rico.
The first set of measures aims to enhance Government use of AI and create a fund for strategic investments in AI. Specifically, the Senate introduced the “Government of Puerto Rico Artificial Intelligence Act,” which establishes the position of an AI Officer under the Puerto Rico Innovation and Technology Service (“PRITS”), establishes an AI Advisory Council, and calls for the development of public policy guiding AI use across government agencies.[1] The AI Officer would be responsible for developing standardized procedures to guide government agencies in acquiring, developing, and using automated decision-making systems.[2] These procedures must include safeguards to ensure compliance with national and international standards, prevent discrimination, and maintain transparency in applying AI technologies.[3] Agencies utilizing AI would be required to examine their systems every two years, and, to further accountability, the AI Officer must submit a biennial report to the Legislative Assembly outlining the progress, challenges, and recommendations regarding AI implementation in government operations.[4] Meanwhile, the AI Advisory Council would advise the Governor and the AI Officer on best practices in the use and regulation of AI and on Puerto Rico’s competitiveness in AI research and development.[5] The Council’s responsibilities include identifying opportunities for international collaboration in AI research, standard-setting, and regulatory development, and advising on integrating AI technologies to improve public services, including healthcare, cybersecurity, and disaster recovery efforts.[6] The Senate also ordered PRITS to create and implement an AI-based application for real-time monitoring of public auction processes to detect potential irregularities.[7]
From a business perspective, the approval of these legislative measures would represent a significant opportunity for AI companies to partner with the Government and provide innovative solutions to their needs.The requirements for AI-based applications, such as real-time monitoring of public auctions, would create demand for advanced technological systems, making Puerto Rico an attractive market for AI developers and service providers. Additionally, the focus on international collaboration and research could position the Island as a potential hub for regional AI innovation, encouraging local entrepreneurship and foreign investment in the sector. Because of this, the Senate introduced a separate bill creating, as a matter of public policy of the Government of Puerto Rico, a Strategic Investment Fund for Economic Development that would promote, inter alia, training programs designed to help individuals develop skills in AI.[8]
Despite calling for greater use of AI, the Senate also seeks to watch this technology with a view toward regulation. To that effect, the Senate ordered PRITS to create a registry of all businesses and companies that use AI in Puerto Rico to keep the Government apprised of which companies are using AI and the type of AI they use.[9] Additionally, the Senate introduced measures to protect the public and their data. These measures include a bill to promote transparency regarding the use of AI in the electoral process and to prohibit predictive data collection in sports betting. Specifically, the Senate introduced an amendment to the Puerto Rico Electoral Code[10] to address AI-generated content explicitly.[11] The amendment would give voters the right to know whether any campaign communications, such as advertisements or social media posts, were partially or fully generated by AI systems.[12] It would also impose penalties for disseminating false AI-generated information without proper disclosure.[13] The Senate also introduced an amendment to the Law of the Puerto Rico Gaming Commission,[14] to prohibit operators and their service providers from collecting data on betting habits for predictive purposes, safeguarding fair play in the gaming industry.[15] Violators would face penalties under the original law.[16]
Several technology-related proposals complement the AI legislation. One such proposal is the “Cybersecurity Training Act of Puerto Rico,” which is designed to ensure that both government and private entities with annual revenues exceeding $100,000 are equipped to handle the potential cybersecurity risks associated with the use of AI and other advanced technologies.[17] To achieve this goal, PRITS would develop a training program to educate individuals on how to reduce cybersecurity risks while ensuring the safe handling of critical information assets.[18]
The legislative measures aim to position Puerto Rico at the forefront of ethical AI development and regulation, ensuring transparency, security, and accountability in this rapidly evolving technological landscape.
Conclusion
With Puerto Rico spearheading innovative AI legislation, the opportunities for businesses, entrepreneurs, and policymakers are unprecedented. From partnering with the government to developing AI-driven solutions and navigating emerging regulations, now is the time to act. Contact us here to discover how we can help you capitalize on these groundbreaking advancements and establish your presence in Puerto Rico’s AI-powered future.
Looking for AI developers or technical consulting and implementation? Check out our partner Honra here.
[1] P. del S. 68, 20th Legislative Assembly, 1st Ordinary Session (Jan. 2, 2025).
[2] Id. Arts. 3-4.
[3] Id. Art. 4.
[4] Id.
[5] Id. Art. 6.
[6] Id.
[7] R. C. del S. 16, 20th Legislative Assembly, 1st Ordinary Session (Jan.14, 2025).
[8] P. del S. 114, Arts. 2-3, 20th Legislative Assembly, 1st Ordinary Session (Jan. 2, 2025).
[9] R. C. del S. 1, 20th Legislative Assembly, 1st Ordinary Session (Jan. 2, 2025).
[10] Law No. 58-2020.
[11] P. del S. 101, 20th Legislative Assembly, 1st Ordinary Session (Jan. 2, 2025).
[12] Id. Sec. 3.
[13] Id. Sec. 4.
[14] Law No. 81-2019.
[15] P. del S. 14, Art. 1, 20th Legislative Assembly, 1st Ordinary Session (Jan. 2, 2025).
[16] Id.
[17] P. del S. 24, Art. 4, 20th Legislative Assembly, 1st Ordinary Session (Jan. 2, 2025).
[18] Id. Art. 3.