By Lia P. Hernández Pérez
Panama is ahead of the region on AI regulation
While many Latin American countries are still debating whether they need an Artificial Intelligence law, Panama is already building its own. The country currently has a series of regulatory initiatives on emerging technologies, specifically on Artificial Intelligence (AI): the bill establishing adaptive AI governance and the draft National AI Strategy, both developed through a multisectoral co-creation process led by the National Secretariat of Science, Technology and Innovation (SENACYT).
These documents highlight the importance of defining guidelines that follow principles such as transparency, accountability, non-discrimination and privacy, fundamental to the development of any technology that is ethical, fair and centered on human beings and their fundamental guarantees.
A framework already built on solid legal ground
These regulatory efforts connect to laws already in force in the country, such as Law 81 of 2019 on Personal Data Protection and Law 6 of 2002 on Access to Information in Public Administration, which seek to ensure that automated decision-making systems respect human oversight, legal remedies and proportionality in the use of personal data. This approach reinforces the idea that AI should serve objectives of public interest, such as efficiency and innovation, without weakening the fundamental guarantees of individuals and the Rule of Law in the country.
What other countries can learn from this process
Some of the key developments in legislation, policy and regulatory frameworks related to AI in Panama worth mentioning are:
- The development of the National Artificial Intelligence Strategy led by the National Secretariat of Science, Technology and Innovation (SENACYT), with international collaboration from Georgia Tech, aimed at defining objectives for an ethical, safe and inclusive adoption of AI.
- Bills on AI regulation submitted to the National Assembly of Deputies, either by legislators or by citizens exercising their right to submit a bill under the citizen participation modality. These bills seek to create a legal framework regulating the development, use, ethics and governance of AI, including provisions related to dignity and human rights.
- Private sector initiatives, such as the ethical guidelines from the American Chamber of Commerce (AmCham Panama) and its code of ethical AI use, which promote corporate governance principles for responsible AI, centered on fairness, transparency and alignment with human rights standards.
- Public debates, expert forums and discussion panels on ethical AI, organized mainly by academic and civil society organizations, which help raise awareness on the topic.
Who makes up the ecosystem
There are also several actors shaping Panama’s AI ecosystem, spanning institutions, academia and the private sector. SENACYT plays a central coordinating role, leading the development of the National Artificial Intelligence Strategy and promoting collaboration between government, academia, the private sector and civil society. Its work focuses on positioning AI as a tool for development, while emphasizing ethics, innovation and capacity building. The Government Innovation Authority (AIG) is another key operational actor, overseeing digital transformation and e-government initiatives, including the gradual integration of AI tools into public administration and public services, and from a governance, oversight and legislative perspective, the National Authority for Transparency and Access to Information (ANTAI).
Other key actors include academia, civil society organizations and the private sector, all actively participating in the AI ecosystem, contributing to research, the defense of human rights in the digital environment and dialogue on the ethical and responsible use of information and communication technologies (ICT). These include: the Panamanian Artificial Intelligence Observatory (OPIA), a collaborative platform driven by civil society and the private sector to identify, analyze and promote ethical, transparent and socially responsible AI practices in the country; organizations such as International IDEA and IPANDETEC, which take part in public debates and regional discussions on AI regulation and its implications for rights and development, bringing civil society perspectives to public forums; and the Chamber of Technology, Information and Telecommunications (CAPATEC), the Business Executives Association (APEDE), AMCHAM and the newly created Laboratory for the Acceleration of Artificial Intelligence.
What’s at stake right now
Currently in Panama, the most debated aspects of AI concern its ethical and responsible use, based on the bills submitted to the legislative body, which are primarily grounded in not replacing human beings with this emerging technology and in fundamental respect for people. On the other hand, its use in sectors such as education is also under discussion, since most of the initiatives currently underway in the country focus on building capacity for people across different productive sectors, such as banking, logistics, health and others.
Why this matters for the whole region
Understanding of AI in the country is still in its early stages, and to promote public understanding, we all need to be part of this co-creation process. The National AI Strategy will launch at the end of July, and we hope that all the commitments developed under it will be backed by an AI governance framework based on international standards, one that strengthens every sector, especially government institutions, in terms of their specialized capabilities and the institutional capacity needed to implement this national policy. This represents an opportunity for collaboration not only for Panama, but for any company or organization assessing how AI will be regulated across the region in the coming years.
About the author
Lia Patricia Hernández Pérez is a lawyer specializing in Digital Law, with more than 15 years of experience in data protection, e-commerce and cybersecurity. She is Director of Legal IT, the first legal boutique specializing in Digital Law in Panama, and as an International Consultant she has advised on the drafting of technology regulations in several countries across the region, including El Salvador and Panama.