CHILE Trends and Developments Contributed by: Carolina Cabrera, LawTech
Regulatory Complexity and Digital Transformation: How Emerging Regulation Is Reshaping Client– Provider Relationships in Technology Projects Chile is experiencing one of the most significant trans - formations of its digital regulatory landscape in recent decades. The entry into force of the Cybercrime Law (Law No 21,459), which modernised Chile’s criminal framework and aligned it with the Budapest Conven - tion on Cybercrime, the implementation of the Cyber - security Framework Law (Law No 21,663) and the enactment of Law No 21,719, which modernises the country’s personal data protection regime and estab - lishes a dedicated supervisory authority, collectively reflect a broader shift towards more robust govern - ance of digital risks. These developments are not occurring in isolation. Together, they form part of a broader regulatory response to increasing digitalisation, growing depend - ence on technology infrastructure and the emergence of new risks associated with data-driven business models, cloud computing, artificial intelligence (AI) and interconnected digital ecosystems. At the same time, organisations across all sectors continue to invest heavily in digital transformation ini - tiatives. For many organisations, digital transformation is increasingly viewed as a strategic necessity rather than a source of competitive differentiation, support - ing objectives relating to efficiency, resilience, innova - tion and long-term growth. These parallel developments are creating a new real - ity in which technology projects can no longer be assessed solely from technical or commercial per - spectives. Regulatory obligations increasingly influ - ence project design, supplier selection, contractual negotiations and governance structures. As a result, digital transformation initiatives are increasingly being viewed as exercises in regulatory governance as much as technology implementation. This evolution is reshaping the relationship between clients and technology providers. Compliance is increasingly being addressed from the earliest stages of project planning rather than after implementation. In many projects, regulatory considerations remain
a central component of governance throughout the project life cycle. Increasingly, successful projects appear to depend not only on technical performance or delivery against schedule, but also on the ability of clients and provid - ers to identify, allocate and manage regulatory obli - gations in an environment characterised by growing complexity and regulatory scrutiny. The New Regulatory Environment for Digital Transformation Over the past decade, digital transformation has become a strategic priority for organisations across virtually every sector of the economy. Businesses con - tinue to invest heavily in cloud migration, enterprise software, advanced analytics, automation technolo - gies and AI solutions in pursuit of greater productivity, resilience and competitiveness. Historically, many of the challenges associated with these initiatives were operational in nature. Organisa - tions focused primarily on implementation timelines, budgets, system integration and user adoption. Reg - ulatory compliance was often treated as a separate exercise managed alongside the project rather than integrated into its design. That approach is becoming increasingly difficult to sustain. Modern technology projects operate within a regulatory environment that is considerably more demanding than it was only a few years ago. Organi - sations must now consider a growing range of legal and regulatory obligations that influence how technol - ogy solutions are selected, configured and operated. In Chile, this trend is particularly evident. The new Personal Data Protection Law introduces enhanced obligations relating to accountability, governance and risk management. The Cybersecurity Framework Law establishes new expectations concerning cybersecu - rity governance, incident reporting and operational resilience. At the same time, ongoing discussions regarding AI regulation reflect a growing focus on transparency, accountability and responsible innova - tion.
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