While the EU AI Act is grabbing headlines, lawmakers in Peu have introduced an EU-inspired piece of regulation. In February, lawmakers introduced BoL 07033/2023, which aims to establish a robust legal framework for the use and regulation of AI. The bill seeks to safeguard citizens’ fundamental rights while encouraging transparent and ethical advancements in AI development. The proposed legislation emphasizes the paramount importance of respecting human rights and ensuring privacy in all facets of AI development within Peru.

Key Points of the Draft Bill:

• Scope and Definitions: The law applies to individuals or entities involved in AI development or application within Peru, regardless of physical location. It defines crucial terms related to AI systems and their life cycle.

• Responsibility and Accountability: Developers, providers, and users bear responsibility for AI system decisions and actions, including documentation and disclosure of algorithms. Digital platforms may face penalties for hosting unauthorized AI apps.

• Risk Classification: Risks associated with AI systems are categorized into four levels: unacceptable, high risk, limited risk, and minimal risk.

• Verification and Certification: Companies must undergo verification and certification processes before launching AI systems to ensure quality and safety.

• Prohibitions and Restrictions: The bill prohibits various AI practices, including manipulation of electoral processes, untargeted scraping of facial images, and emotion recognition in certain contexts.

• Enforcement and Sanctions: The Secretariat of Government and Digital Transformation will oversee enforcement, though specifics on fines and sanctions are yet to be determined.

• Civil Liability Insurance and Usage Error Reporting: AI stakeholders must have civil liability insurance, and a confidential mechanism will be established to report AI system usage errors.

Enforcement and oversight of the proposed regulations would fall under the purview of the Secretariat of Government and Digital Transformation, though specific details regarding fines and sanctions are yet to be determined. Furthermore, the bill mandates that AI stakeholders maintain civil liability insurance and establishes a confidential reporting mechanism for AI system usage errors. While the bill hasn’t been passed yet, it’s expected to undergo several modifications before it’s enacted. 

If you’re wondering how Peru’s version of the EU AI Act, or any other bill around the world, could impact you, don’t hesitate to reach out to BABL AI. Their Audit Experts are ready to provide valuable assistance while answering your questions and concerns.