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A Closer Look: Mexico’s Proposed Artificial Intelligence Bill


Manager, Artificial Intelligence | INQ Consulting


The rapid growth of artificial intelligence (“AI”) has spurred global discussions on its governance, prompting a variety of regulatory efforts across the globe. In 2019, the OECD’s 36 member countries, including Mexico, adopted a pioneering set of responsible AI principles. These guidelines emphasized inclusive growth and accountability alongside recommendations to bolster AI research and prepare for labour market impacts.


In early 2024, Senator Ricardo Monreal from the Morena party proposed the “Federal Law Regulating Artificial Intelligence (“the Bill”). This Bill, inspired by regulatory frameworks such as the EU AI Act and legislative advances in Chile, aims to establish clear guidelines for AI’s use and development.


Contents of Bill

The proposed Bill outlines the responsibilities of both AI system providers and users. It suggests that the Federal Telecommunications Institute (“IFT”) be deemed the enforcement authority for the Bill and create a National Artificial Intelligence Commission comprised of AI experts to advise the IFT. The IFT would be empowered to levy sanctions against violators, ranging from warnings and fines to the suspension of AI systems, with penalties scaled according to the revenue of the offending parties.


The Bill categorizes AI systems by risk level, similar to the approach taken by the European Union, and details specific obligations for each category:


  • Unacceptable Risk: Prohibits AI applications capable of causing significant physical or psychological harm, including those used for intrusive biometric identification.

  • High Risk: Encompasses AI systems that could endanger individual health or safety or infringe on human rights.

  • Low Risk: Covers AI applications posing a minimal danger to people’s well-being or rights.


Irrespective of the risk level, all AI system developers and providers must inform users about their interaction with AI and implement adequate ongoing monitoring mechanisms. Providers of high-risk AI systems would be obligated to establish quality and risk management systems, compile and disseminate technical documentation of their systems, and seek formal approval from the relevant authority before deployment.


Moreover, the Bill emphasizes the protection of intellectual property (“IP”). Any artistic works or content created wholly or partially with AI must be clearly labelled when registering for IP protection. Additionally, AI developers and providers must obtain consent from IP rights holders before using their data to train AI systems, safeguard creators’ rights and promote ethical AI use.


Looking Ahead

This legislative initiative underscores Mexico's dedication to fostering a future where AI is developed responsibly, blending innovation with ethical standards. As AI reshapes various sectors, it's clear that regulations will be pivotal in steering its growth to benefit society. With many jurisdictions still on the cusp of adopting AI laws, organizations are encouraged to recognize the emerging consensus in the legal framework for AI and to act promptly to navigate the evolving regulatory environment seamlessly.


To prepare, organizations should focus on five key actions:


  1. Adopt AI quality and management system standards, such as aligning AI governance with the ISO/IEC 42001 "Artificial Intelligence Management System" standard.

  2. Implement watermarking for AI-generated content, utilizing open-source standards from groups like the Coalition for Content Provenance and Authenticity to enhance transparency and trust in AI applications.

  3. Apply red-teaming approaches by engaging an independent entity or consulting with external experts to evaluate AI systems' robustness, safety, and security.

  4. Develop AI policies that clarify the organization's stance on risk and explicitly state the boundaries for acceptable and unacceptable AI use.

  5. Offer training and educational programs for data and AI professionals to ensure comprehensive understanding and responsible management throughout the AI lifecycle.


Not sure where to get started? INQ’s portfolio of AI services is customized to fit your specific needs and get you AI-ready. To learn more, visit our website at www.inq.consulting or contact us at ai@inq.consulting. To keep up with the latest in AI news, subscribe to the Think INQ newsletter.


 

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