Regulatory challenges of artificial intelligence in the andean community and opportunities for digital entrepreneurship

Abstract

Artificial intelligence (AI) has the potential to transform public administration and promote sustainable development, but it also poses complex ethical and regulatory challenges. This article examines emerging regulatory strategies in the Andean Community of Nations (CAN), assessing their impact on digital entrepreneurship and the need for greater regional cooperation. Through a qualitative and comparative approach, a documentary analysis of national AI regulation policies in Bolivia, Colombia, Ecuador, and Peru was conducted, identifying similarities, differences, and limitations. Both hard-law and soft-law instruments were analyzed, revealing a strong influence of the European regulatory model on AI governance. The findings show that Colombia and Peru lead with advanced regulatory initiatives, while Ecuador and Bolivia demonstrate more modest progress. The study highlights the absence of binding regulatory frameworks at the regional level and regulatory fragmentation, which hinder the creation of a unified digital market and limit the competitiveness of transnational entrepreneurship. The study concludes that the CAN must strengthen a coherent regional regulatory framework that balances innovation with the protection of fundamental rights and the mitigation of ethical risks. Additionally, it emphasizes the importance of adopting a supranational approach based on regional cooperation and learning from successful regulatory models to drive innovation and sustainable growth in the AI sector