El SalvadorAI regulation

Regulation Status

• El Salvador therefore has an enacted, pro-innovation national AI law (2025) providing regulatory clarity, rather than relying solely on sectoral or voluntary frameworks.
• El Salvador passed a Law for the Promotion of Artificial Intelligence and Technologies in 2025, designed to provide regulatory clarity and certainty for the industry, including for the development of open-source models; Article 19 includes sandbox protections and shields against third-party mischief.
• The law's reported features include mandatory impact assessments for high-risk AI systems, data-privacy compliance requirements, transparency obligations for AI algorithms in critical sectors such as healthcare, finance and public administration, and penalties for non-compliance.
• Earlier, in 2023, lawmakers approved a 15-year tax exemption for companies developing AI and computer programming work to attract tech investment; in December 2025 El Salvador partnered with xAI to deploy a nationwide AI-powered education program using the Grok model across more than 5,000 public schools.