CHILE Trends and Developments Contributed by: Carolina Cabrera, LawTech
depends not only on contractual protections but also on transparency, information sharing and ongoing co- operation between clients and providers. Data Governance as a Core Project Requirement Data sits at the centre of virtually every digital trans - formation initiative. Whether an organisation is imple - menting a customer relationship management plat - form, deploying analytics tools or incorporating AI capabilities into business processes, data is often the foundation upon which value is generated. For this reason, data governance has become one of the most important considerations in project planning and execution. The enactment of Chile’s new Personal Data Protec - tion Law represents a significant development in this regard. The new framework aligns Chile more closely with international standards and introduces enhanced obligations relating to accountability, governance and risk management. For organisations undertaking digital transformation initiatives, privacy considerations are increasingly being integrated into project planning from the outset. Decisions concerning data architecture, vendor selec - tion, international transfers and AI deployment may all have implications under the new regime. The creation of a dedicated supervisory authority is also expected to encourage organisations to adopt more mature governance practices and increase attention to accountability mechanisms. Several questions therefore require consideration dur - ing the earliest stages of project design. • What categories of data will be processed? • Which parties will have access to the information? • How will data be protected and eventually deleted? Failure to address these questions early in a project may result in delays, redesign efforts and increased compliance risks. • Will personal data be involved? • Where will information be stored? • Will data be transferred internationally?
Increasingly, organisations are seeking greater clar - ity regarding the allocation of responsibilities for data governance activities. Clients often expect providers to implement robust controls, support compliance obligations and provide transparency regarding their data management practices. Artificial Intelligence and the Emergence of Shared Accountability The rapid adoption of AI technologies is introducing an additional layer of complexity into digital transfor - mation projects. Organisations are exploring AI solutions to improve efficiency, automate decision-making, enhance cus - tomer experiences and generate business insights. Whilst these technologies offer significant oppor - tunities, they also raise important governance and accountability questions. Unlike traditional software applications, AI systems may generate outputs that evolve over time and are not always fully predictable. This characteristic can create challenges when organisations attempt to allo - cate responsibilities between clients and technology providers. Questions frequently arise regarding: • validation of AI-generated outputs; • management of bias and discrimination risks; • transparency and explainability; • accountability for inaccurate or harmful outcomes; and • ongoing monitoring and performance assessment. These issues are becoming increasingly relevant as regulators around the world continue to explore frameworks designed to address the risks associated with AI deployment. Although regulatory approaches vary, several com - mon themes are emerging. Risk management, trans - parency, human oversight and accountability are increasingly being recognised as core principles of AI governance.
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