When it comes to AI in regulated markets, compliance is the name of the game—and Brand Engagement Network (Nasdaq: BNAI), or BEN, just made a power move to dominate the field south of the equator.
The conversational AI company announced a new strategic partnership with SKYE Inteligencia LATAM, giving BEN an immediate foothold in Latin America and Spain’s growing AI ecosystems—particularly where data sovereignty laws have made cloud-based solutions tricky for foreign providers.
A $5 Million Bet on Localized AI
Under the deal, effective October 30, 2025, SKYE LATAM will make a $5 million preferred equity investment in BEN, recognized as IP licensing revenue. In return, BEN secures a 25% ownership stake in SKYE LATAM, a board seat, and a 35% revenue share on all software, SaaS, and service sales across industries.
The partnership also includes an exclusive license for government-sector AI deployments in Latin America and Spain, along with non-exclusive rights across other verticals. The agreement is perpetual, with BEN maintaining a right of first refusal on any sale—essentially locking in long-term control over its regional IP.
Powering Latin America’s Regulated AI Boom
The collaboration centers on BEN’s Engagement Language Model (ELM™) and Retrieval-Augmented Generation (RAG) technologies—designed to deliver compliant, localized conversational AI for heavily regulated sectors like finance, healthcare, and public administration.
With Mexico’s Federal Law on Protection of Personal Data, Brazil’s LGPD, and Argentina’s new 2025 data localization mandates, Latin America is becoming a testbed for sovereign AI models that must operate inside national borders. That’s where SKYE LATAM’s regional expertise—and BEN’s regulatory-ready tech—come together.
“We expect this partnership to propel our AI into the heart of Latin America’s digital transformation—a region of over 663 million people primed for AI-driven efficiencies,” said Tyler Luck, Acting CEO and Co-Founder of BEN. “This isn’t just about tech licensing—it’s about building a scalable ecosystem with partners who understand both the market and the rules.”
Strategic Control, Local Execution
SKYE LATAM’s CEO, Gastón Iván Gaxiola Romero, echoed the sentiment: “BEN’s platform enables transparent, trustworthy AI solutions. Through SKYE LATAM, we’ll empower governments and enterprises to modernize while respecting local data laws. We believe this collaboration positions us to lead Latin America’s AI revolution.”
The deal marks BEN’s first major international licensing agreement, signaling a deliberate expansion strategy into regions where AI regulation meets opportunity. BEN’s existing footprint—spanning life sciences, healthcare, insurance, financial services, and retail—has made it a go-to provider for compliance-first AI.
Context: The New AI Trade Routes
The move reflects a broader trend among AI companies racing to regionalize their platforms. As countries tighten control over data residency and AI governance, partnerships like this one are becoming essential.
For BEN, it’s more than a licensing deal—it’s a calculated step into a continent eager for digital transformation but wary of imported algorithms. And if the model proves successful, don’t be surprised if other AI firms start cutting similar cross-border equity deals to keep pace.
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