Latvia - AI Development Law (2025)

Overview

The Law establishes a national institutional and legal framework to promote responsible artificial intelligence development in Latvia by creating the Mākslīgā intelekta centrs (AI Centre). The statute provides for the Centre’s legal form, governance, financing, tasks and relationships with state institutions, research organisations and industry. Its core objective is to accelerate the adoption of trustworthy, safe and competitive AI in the Latvian economy and public administration while safeguarding fundamental rights and aligning national action with European AI governance initiatives. The legislative process is documented in official sources: the legislative proposal is recorded in the government portal and the Saeima’s legislative information system, and the final Act is published in the Official Gazette. For primary source information see Mākslīgā intelekta attīstības likuma projekts (taportals) and the consolidated enactment at Mākslīgā intelekta centra likums - Likumi.lv.

Definitions

The Act defines key terms used in the national AI policy context, including "Mākslīgā intelekta centrs" (AI Centre), "AI ecosystem", "stakeholders" (public authorities, higher education and research institutions, private sector entities), "support measures" (grants, pilot projects, capacity-building), and references to international instruments. The definitions align the Act’s vocabulary with national administrative law terms and make explicit the Centre’s non-regulatory, coordinating mandate. Definitions are designed to be interoperable with EU-level terminology used in EU AI policy documents.

Governance and Institutional Framework

The statute establishes the AI Centre as a legal entity (a foundation/association-type structure) and sets out a tripartite governance model bringing together state actors, academic and research representatives and private sector actors. A supervisory board or council (the exact composition and appointment rules are specified in the Act and implementing statutes) is tasked with strategic guidance, while an executive management is responsible for day-to-day operations. Ministries (notably the Ministry of Smart Governance and Regional Development — VARAM) retain policy and oversight responsibilities; specific collaboration mechanisms and reporting channels to the Cabinet and the Saeima are specified. The Centre is authorised to accept state funding, grants and donations and to administer state-allocated project funds. See the government project page for drafting and responsible ministry details: taportals: project entry and the Saeima information pages showing parliamentary consideration: Saeima: conceptual support.

Key Focus Areas

The Act concentrates national AI efforts in several interrelated areas: 1) ecosystem building — facilitating public–private–academic partnerships and pooling resources for research, standards and pilot projects; 2) skills and education — national measures to raise AI literacy, digital skills and specialist training; 3) risk governance — provision of guidance on risk identification, mitigation and adoption of good practices consistent with national and EU legal obligations; 4) innovation support — targeted funding, testing and sandbox facilities to accelerate commercialization of AI solutions; 5) ethical and rights-based safeguards — ensuring AI development respects privacy, non-discrimination and other fundamental rights; 6) international cooperation — representing national interests in EU and global AI fora and aligning national practice to the EU AI Act and related instruments. The law defines the Centre’s role in coordinating these areas, convening stakeholders, and disseminating guidance to achieve coherent national policy implementation.

Implementation Framework

Implementation is structured around multi-annual plans and annual work programmes that the Centre prepares in cooperation with relevant ministries and stakeholders. The Act empowers the Centre to design and finance pilot projects, issue non-binding technical and ethical guidance, coordinate national research agendas and support conformity and standardisation activities in preparation for EU-level obligations. The Centre is expected to collaborate closely with sectoral regulators and public procurement authorities to integrate responsible AI principles into government contracting and public service delivery. Practical implementation will require further secondary legislation and memoranda of understanding with participating institutions.

Monitoring and Evaluation

The statute requires periodic reporting on implementation outcomes, including publication of annual reports and performance indicators related to project delivery, skills development, research outputs, and outreach activities. The Centre must monitor national progress against strategic objectives and maintain transparent records of funded activities. The Act also envisages evaluation mechanisms, enabling the Cabinet or a parliamentary committee to review results and recommend policy adjustments. Transparency measures for monitoring are intended to support public trust and evidence-based policy making.

Penalties, Liability, and Appeals

The Act primarily establishes institutional capacity and does not itself create a comprehensive novel enforcement regime. Liability for unlawful AI uses, breaches of data protection or discrimination remain governed by existing administrative, civil and criminal laws and by sectoral regulators' competences. The Act anticipates that sectoral legal regimes (e.g., personal data protection law, consumer protection, sector-specific licences) will be the primary enforcement routes. Where the Centre awards public funds or enters contracts, standard public procurement and grant accountability rules apply, including audit, reporting and administrative remedies.

Relationship to Other Instruments

The Act explicitly situates the AI Centre within Latvia’s legal order and recognises that its activities must be compatible with the Constitution, data protection rules, anti-discrimination law and public administration legislation. It complements existing sectoral laws and is intended to work alongside existing supervisory authorities rather than replace them. The law also creates interfaces with national research funding instruments and higher-education policy to ensure an integrated approach to R&D, commercialisation and workforce development.

International Alignment

From the outset the statute frames national AI policy to align with EU-level governance and international standards. The Centre has an explicit mandate to coordinate Latvia’s participation in EU and international AI governance initiatives, to facilitate cooperation on standardisation, and to prepare the national ecosystem to meet obligations introduced by supranational instruments — notably the EU AI Act. The law’s alignment emphasis helps ensure that national support measures and risk management practices remain interoperable with cross-border regulatory requirements; see the Official Gazette publication and government project documentation for references to EU coordination: Latvijas Vēstnesis: publication and taportals: project dossier.

Implementation Timeline

Sources and References