El Salvador has approved a new AI law aimed at promoting innovation while maintaining ethical standards and regulatory oversight. The legislation prioritizes open-source AI development and establishes guidelines for research and application. It works alongside existing data protection laws but takes precedence in the event of conflict. The government sees this as a strategic move to attract investment and technological growth, unlocking economic opportunities and improving infrastructure. The law also focuses on education and workforce training and mandates the creation of a regulatory agency to enforce ethical standards and ensure transparency.



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