Focus On… Major legal challenges in Uruguay over the next five years 

In the next five years, one of the major legal challenges for businesses in Uruguay, as well as globally, will be the development and integration of Artificial Intelligence (AI). The use of AI in business operations is rapidly increasing, presenting numerous opportunities for efficiency and innovation. However, this advancement also brings significant legal and regulatory challenges, particularly regarding intellectual property, data transfer regulations, and the protection of corporate confidential information. 

Intellectual Property Compliance 

One of the foremost legal challenges with AI is ensuring compliance with intellectual property (IP) laws. As businesses leverage AI to create, analyze, and utilize content, there is a heightened risk of inadvertently infringing on third-party IP rights. AI systems often process vast amounts of data, some of which may be protected by copyright, patents, or trademarks. Companies must develop robust mechanisms to ensure that their use of AI does not violate these rights. This requires not only legal expertise but also technological solutions that can monitor and manage the content used by AI systems. 

Data Transfer Regulations 

Data is the lifeblood of AI and managing it in compliance with various data protection regulations is another significant challenge. In Uruguay, Law 18,331 governs how personal data can be collected, stored, and transferred. On a global scale, businesses must also navigate regulations such as the European Union’s General Data Protection Regulation (GDPR) and similar laws in other jurisdictions. Ensuring that AI systems comply with these regulations involves complex data governance frameworks, cross-border data transfer policies, and continuous monitoring for compliance. Businesses must be proactive in updating their data protection practices and ensuring that all AI applications adhere to these legal standards. 

Corporate Confidential Information 

AI’s ability to process and analyse large datasets can potentially expose sensitive corporate information. Protecting this information is crucial, as any breach could have significant legal and financial repercussions. Businesses need to implement stringent cybersecurity measures and ensure that AI systems are designed with security in mind. This includes using encryption, access controls, and regular audits to safeguard confidential information. Additionally, companies should establish clear policies and training programs to ensure employees understand the importance of data security and the specific risks associated with AI. 

Building an AI Compliance Culture 

Addressing these legal challenges effectively requires more than just technical solutions; it necessitates building a culture of compliance within the organisation. This involves educating employees at all levels about the legal implications of AI and the importance of adhering to relevant regulations. Companies should invest in training programs that cover IP rights, data protection laws, and cybersecurity practices. Encouraging a culture of compliance also means fostering open communication about the use of AI and ensuring that legal and IT teams work closely together to address potential risks.