CHILE Law and Practice Contributed by: Carolina Cabrera, LawTech
ments require periodic updates and verification that the code can be compiled and used. Release triggers commonly include insolvency, cessa - tion of business, discontinuation of support, material breach of support obligations, critical service failure or termination where the customer needs continued access to operate the software. Escrow must be carefully drafted from an IP per - spective. Deposit does not transfer ownership. The contract should define the customer’s licence upon release, permitted users, confidentiality, trade secrets, third-party components, open source and restrictions on commercial exploitation. 2.5 Commitments Regarding Ongoing Availability of Saas Solutions SaaS availability commitments in Chile are mainly contractual, but increasingly influenced by cyberse - curity, data protection, business continuity and sector regulation. Customers typically expect uptime com - mitments, maintenance rules, support, incident man - agement, backups, recovery and remedies for missed service levels. The core commitment is usually an availability SLA measured monthly or annually. The clause should define how availability is calculated, exclusions from downtime, measurement tools, and whether the SLA applies to the platform, modules, APIs or critical func - tions. Scheduled maintenance, emergency mainte - nance, customer-caused downtime and third-party network failures are common exclusions. Maintenance and support commitments are also important. Customers often request prior notice, defined maintenance windows, limits on disruption, support channels, severity levels, response times, escalation, incident communications and remedia - tion obligations. For continuity, customers seek backup, restoration, redundancy, disaster recovery, recovery time and recovery point commitments. Regulated or critical customers may also require tested continuity plans, evidence of testing and support for their own regula - tory obligations.
Remedies are usually service credits, but customers often resist making credits the sole remedy for repeat - ed failures, prolonged outages, data loss, confiden - tiality breaches or failures affecting critical regulated services. Termination rights, audit, regulatory access, data export and transition assistance are increasingly negotiated.
3. Artificial Intelligence 3.1 AI Legislation and Regulation 3.1.1 General Legislative Regime for AI
Chile does not yet have a fully enacted general stat - ute regulating the use or development of AI solutions. AI systems are currently governed through general and sector-specific laws, including data protection, consumer protection, cybersecurity, IP, civil liability, employment, financial regulation and public sector rules, depending on the use case. Chile is actively moving toward a general AI regime. A bill regulating AI systems is under legislative discus - sion and follows a risk-based structure influenced by international AI governance trends, including the EU AI Act, OECD principles and UNESCO recommenda - tions. The bill would apply to providers placing AI systems on the Chilean market or putting them into service in Chile, implementers domiciled in Chile, and foreign providers or implementers where the output is used in Chile. It defines key actors across the AI value chain. The proposed framework classifies AI systems by foreseeable risk: unacceptable risk, high risk, limited risk and no evident risk. High-risk systems would be subject to risk management, data governance, tech - nical documentation, logging, transparency, human oversight, accuracy, robustness and cybersecurity obligations. The bill also includes governance and enforcement mechanisms, serious incident reporting, sandboxes, confidentiality, administrative sanctions and civil liabil - ity. Until enacted, AI compliance in Chile remains a layered exercise based on data, cybersecurity, sector regulation, IP, contracts and risk management.
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