Peru's New AI Regulations: Transparency, Risk Mitigation, and Business Impact

Peru’s AI Regulations: A Balanced Approach to Transparency and Risk Mitigation

Peru has taken a significant step into the AI age with the introduction of new regulations aimed at guiding the responsible development and deployment of AI systems across the nation. These regulations, outlined in Supreme Decree N.º 115-2025-PCM, prioritize transparency and risk mitigation, particularly for high-risk AI systems.

The regulations apply to both public and private sectors, including state-owned companies and private businesses. However, they exclude personal use and national defense or security applications, focusing instead on economic and social sectors where AI deployment could have broader implications.

Risk-Based Classification of AI Systems

A key aspect of the new rules is the risk-based classification of AI systems. Developers working on high-risk systems are subject to stricter requirements, including the need for algorithmic transparency. This means companies must provide clear explanations of how their AI systems make decisions, ensuring accountability and reducing the potential for harmful outcomes.

“The new regulations are a step in the right direction,” said Carlos Rodriguez, a leading AI ethics expert in Lima. “By categorizing systems based on risk, Peru is ensuring that the most impactful AI applications are developed with the highest standards of transparency and accountability.”

High-Risk AI Systems in Recruitment

One area identified as high-risk is the use of AI in recruitment. Companies are encouraged to conduct a voluntary pre-impact analysis before implementing such systems. If the analysis reveals potential risks, companies must take proactive measures to mitigate negative outcomes or incorrect automated decisions. This approach aims to protect job seekers from biased or unfair AI-driven recruitment processes.

For instance, a company using AI to screen job applications must ensure that the system does not disproportionately reject candidates based on gender, age, or other protected characteristics. By addressing these issues proactively, businesses can maintain trust in their hiring practices while benefiting from AI efficiencies.

Company Obligations and Implementation

Companies developing or using AI systems have specific obligations under the new regulations. The timeline for implementing these rules varies depending on the sector and type of company, allowing for a phased approach to compliance. This flexibility ensures that businesses can adapt to the new requirements without disrupting their operations.

“The phased implementation is critical,” noted Maria Fernandez, a tech policy advisor. “It allows companies to make the necessary adjustments while continuing to innovate. This balance is essential for Peru’s economic growth and its position in the global AI landscape.”

Looking Ahead: Balancing Innovation and Ethics

As Peru embraces AI, the new regulations aim to strike a balance between innovation and ethical considerations. By emphasizing transparency and responsible development, these rules could shape how businesses and the government use AI in the future. This approach not only protects citizens but also fosters an environment where AI can thrive responsibly.

In the coming years, Peru’s AI landscape is expected to evolve rapidly. The regulations provide a framework for responsible growth, ensuring that AI benefits society while minimizing risks. As other countries watch, Peru’s approach could serve as a model for balancing technological progress with ethical standards.