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This paper explores the phenomenon of algorithmic discrimination within the digital welfare states of Latin America. It examines how automated decision-making processes, driven by algorithms, can perpetuate and exacerbate existing social inequalities. The study delves into the political economy of Latin American welfare states, highlighting the transition influenced by global economic frameworks such as the Washington Consensus and the emerging "Silicon Valley Consensus." 

Through a comprehensive analysis of 234 public algorithms and case studies from Colombia and Chile, the paper identifies key areas on which algorithmic decision-making impacts social policies. It also evaluates institutional responses and legal frameworks aimed at mitigating algorithmic bias and promoting fairness and inclusiveness. The findings underscore the need for region-specific approaches to algorithmic governance, emphasizing the importance of contextualized legal and regulatory measures to ensure non-discrimination and equitable access to social services in the digital age.