In a deep conversation with Juan Pablo Fernández for 5 Días, a prestigious Paraguayan media outlet, Argentine expert Diego San Esteban — Commercial Director and a regional innovation leader — addresses the urgency for Latin America to regulate artificial intelligence (AI) as a State policy, while keeping institutional cohesion and competitiveness in sight.
Latin America: A Region Still in Normative Construction
San Esteban points out that, while Europe has developed strict regulatory frameworks to protect data and ensure ethical algorithms, in Latin America these regulations are still weak or fragmented. He proposes a regional agenda — not a literal copy of the European model, but a strategic adaptation to our local realities — to promote effective and relevant regulation.
He notes that Brazil is leading in regulatory frameworks and legislation, and that sooner or later each Latin American nation will need to regulate AI implementation as a State policy.
In this sense, the starting point seems to be private initiative guided by communication ethics, but this is destined to be legally structured. Only when this is unified across the region will the rules of the AI game be clear.
Balancing Prudence and Progress
San Esteban warns that overly rigid regulation could lead to an “innovation drain,” in which companies seek less restrictive environments. Therefore, he advocates for reasonable regulatory frameworks that protect without stifling creativity and modernization.
The Double-Edged Sword: Joining Without Integrating Internal Systems
“Many companies adopt AI just to avoid being left out, but fail to integrate it systematically,” the interviewee warns.
“Let’s say companies are dating AI, but not committing to it.”
He refers to the stance many firms take as a result of corporate FOMO — fear of missing the technology innovation train — which leaves them unable to use AI to optimize their internal ecosystem.
“This superficial practice,” he adds, “exposes them to risks such as unintended bias, automated decisions without controls, and innovation that is more cosmetic than transformative.”
He also raises concern about a labor market issue: changes have emerged that have created roles for which names don’t even exist yet, and such changes will grow in scale in the future.
Training as a Lever for Real Impact
“Technology is not useful if it is not accompanied by training. The true value of AI is unlocked when teams are prepared to use it strategically, respecting ethical and regulatory principles.”
Technology alone is not enough. San Esteban stresses that without continuous training, its value fades. Only with well-trained teams — and a responsible, supervised approach — can AI improve customer experience without compromising ethics or security.
While the interview does not delve into technical sections, the President of Latam Open Finance emphasizes that solutions must be designed to serve as support — not as a replacement — for regulatory frameworks: tools that operate with high levels of protection, transparency, and accountability.
He affirms that N5 offers that fundamental ethical commitment. Evidence of this is their AI tools designed “in the language of the financial sector,” which minimize risks such as model “hallucinations” and prevent actions involving sensitive client data — a clear indication of an operational ethics focus.
In Summary
Diego San Esteban’s conversation with Juan Pablo Fernández in 5 Días outlines a clear path:
Latin America must commit to smart regulation that balances protection and flexibility; at the same time, companies must truly integrate AI — not just adopt it for appearance — and invest in effective training.
“Only then will it be possible to advance with responsible and lasting innovation in the region.”
