Panama AI Regulation Overview

Overview

Panama's approach to artificial intelligence regulation and governance is defined by a strategic transition toward digital transformation, ethical technology adoption, and public sector modernization. Central policy direction is driven by the National Secretariat of Science, Technology, and Innovation (SENACYT) alongside the National Authority for Government Innovation (Autoridad Nacional para la Innovación Gubernamental - AIG). The nation positions AI as a core component of its national development objectives, aiming to establish Panama as a regional technology and innovation hub for Latin America while modernizing key industries such as logistics, finance, healthcare, and education.

The strategic foundation rests on national planning instruments, notably the National Strategic Plan for Science and Technology (Plan Estratégico Nacional de Ciencia y Tecnología - PENCYT) 2025-2029, which establishes 'Digitalization' as a primary pillar. Concurrently, Panama's national AI strategy evolved from the 2021 Estrategia Nacional de Inteligencia Artificial (ENIA)—originally launched under the Agenda Digital Nacional 2021-2024—to an updated national roadmap adopted on August 11, 2026, via Cabinet Council Resolution No. 89-26 under SENACYT's technical coordination within the Agenda Nacional de Tecnologías Avanzadas.

Regulatory Approach

Panama currently relies on a hybrid policy landscape consisting of soft-law strategic frameworks, public administration digital transition mandates, and emerging legislative proposals. Non-binding strategic policy frameworks, such as PENCYT 2025-2029 and the national AI strategy, establish national guidelines for human capital development, AI research infrastructure, algorithmic transparency, and responsible AI deployment across public and private domains. These policies emphasize alignment with international ethical principles, including recommendations from UNESCO and the OECD.

On the formal legislative front, Panama is pursuing binding horizontal regulation through Draft Bill No. 14 on Artificial Intelligence Regulation, introduced to the National Assembly in 2023. Draft Bill No. 14 contemplates a risk-conscious approach that distinguishes categories of AI applications based on their potential impact on citizen rights and welfare, contemplating requirements for human oversight, explainability, and operational transparency. Binding procedural standards for government AI integration are further underpinned by Law 144 of 2020, which governs electronic procedures and interoperability across public administration.

Key AI Legislation

• National Strategic Plan for Science and Technology (PENCYT) 2025-2029 (RAI-PA-NA-NSPSTXX-2025): Comprehensive policy framework coordinated by SENACYT establishing digitalization and AI research capacity as key national pillars to foster a knowledge-based economy and responsible AI adoption.
• Draft Bill No. 14 on Artificial Intelligence Regulation (RAI-PA-NA-DN1AIXX-2023): Proposed legislative framework introduced to the National Assembly in 2023 seeking to establish legal definitions for AI, mandate digital rights protections, transparency, accountability, and human oversight in high-stakes automated decisions.
• Estrategia Nacional de Inteligencia Artificial (ENIA) (RAI-PA-NA-STRATEG-2021): National AI strategic policy initially launched in 2021 by AIG and subsequently superseded on August 11, 2026, by Resolution No. 89-26, establishing national frameworks for ethical AI, workforce upskilling, and public sector integration under SENACYT coordination.
• Ley 144 de 15 de abril de 2020 (RAI-PA-NA-LEY1440-2020): Binding statute modifying Law 83 of 2012 to mandate digital transformation across all state entities, empowering AIG to enforce interoperability standards, digital identities, and electronic administrative workflows.

Governance & Enforcement Bodies

Institutional oversight for Panama's AI and digital strategy is shared among key state bodies. The National Secretariat of Science, Technology, and Innovation (SENACYT) serves as the primary coordinating entity for scientific research, human capital development, and overall AI policy execution, leading initiatives such as INDICATIC and leadership training programs like GerencIA Panamá. SENACYT holds technical coordination responsibilities for the national AI strategy approved under Resolution No. 89-26 and works alongside sectoral ministries for policy implementation.

The Autoridad Nacional para la Innovación Gubernamental (AIG) holds the legal mandate for public sector digital transformation. AIG manages national technical infrastructure—including the single citizen portal (Panamá Digital)—and establishes binding technical standards for interoperability, cybersecurity, and digital identity. Sector-specific governance involves the Ministry of Commerce and Industries, while legislative oversight remains with the National Assembly (Asamblea Nacional).

Penalties & Enforcement

Strategic policy instruments such as ENIA and PENCYT 2025-2029 are non-binding policy frameworks and do not contain direct statutory enforcement mechanisms or monetary fine structures. However, public agencies and private entities implementing AI systems remain subject to existing binding legal obligations, including data protection requirements enforced by designated supervisory authorities.

While Draft Bill No. 14 contemplates accountability frameworks and operational responsibility for AI developers and operators, the corpus holds no record of specific statutory penalty figures, fine thresholds, or criminal sanction schedules under current AI draft legislation or strategic policies.

Data Protection Framework

Data protection within Panama's AI ecosystem is regulated through Law 81 of 2019 on Personal Data Protection, which is overseen and enforced by the National Authority for Transparency and Access to Information (Autoridad Nacional de Transparencia y Acceso a la Información - ANTAI). High-impact AI applications, automated data processing, and public sector data initiatives must comply with mandatory personal data privacy standards established under this legislation.

Strategic AI policies specifically emphasize data governance as a prerequisite for trustworthy AI development. Implementation frameworks such as ENIA highlight the creation of structured data rules, data security standards, and high-quality anonymized datasets (such as national data lakes) to facilitate AI training while preventing privacy breaches and unauthorized algorithmic profiling.

Sector-Specific Rules

Panama prioritizes AI deployment across designated economic and social sectors. In logistics and maritime services, strategic plans promote AI applications for predictive maintenance, route optimization, automated port operations, and managing water resources in the Panama Canal watershed. In financial services, policy guidelines encourage FinTech innovation, including transparent AI fraud detection and credit scoring models designed to enhance financial inclusion.

In healthcare and education, national strategies target early disease detection, hospital resource management through the Electronic Health Record system, and personalized learning platforms. In public administration, Law 144 of 2020 mandates paperless workflows, electronic signatures, and automated citizen services via the PanamaDigital portal, encouraging GovTech innovation labs and regulatory sandboxes to test public sector AI tools.

International Alignment

Panama's AI governance principles explicitly incorporate international ethical consensus and multilateral guidelines. Strategic documents benchmark national objectives against international frameworks established by UNESCO and the OECD, emphasizing human-centric AI development that respects human rights, individual freedoms, and democratic values throughout the Americas.

External progress and policy benchmarks are evaluated through regional assessments, including Panama's participation and ranking in the Latin American Artificial Intelligence Index (Index Latinoamericano de Inteligencia Artificial - ILIA). Panama actively engages in regional AI governance discussions to ensure its national legal and policy frameworks align with emerging global technical and ethical standards.

Future Developments

Key upcoming developments in Panama include the ongoing legislative evaluation of Draft Bill No. 14 by the National Assembly, which aims to formalize legal definitions, citizen digital rights, explainability rules, and operational oversight for AI systems. Following potential passage, SENACYT and relevant sectoral ministries will be tasked with drafting detailed implementing regulations and high-risk sectoral guidelines.

Additionally, under the PENCYT 2025-2029 framework, a national AI strategy draft was anticipated by May 2025, paving the way for full execution under Resolution No. 89-26. A mid-term strategic review for PENCYT is scheduled for January 1, 2027, to evaluate key performance indicators in human capital, AI research capacity, and technological adoption rates prior to the plan's conclusion on December 31, 2029.

Enforcement Bodies

Agency	Mandate	Key Powers	Website
National Secretariat of Science, Technology, and Innovation (SENACYT)	Primary coordinating body for national science, technology, innovation policy, and AI research strategy.	Coordinates PENCYT 2025-2029 and national AI strategy, issues annual action plans, manages R&D grant allocations, leads human capital upskilling programs.
National Authority for Government Innovation (AIG)	Lead authority for public sector digital transformation and national digital government policy.	Sets technical interoperability, cybersecurity, and digital identity standards; manages PanamaDigital portal; conducts public agency system audits.
National Authority for Transparency and Access to Information (ANTAI)	Supervisory authority overseeing personal data protection and access to public information.	Enforces Law 81 of 2019 on Personal Data Protection across data processing activities, including AI systems handling personal data.
National Assembly (Asamblea Nacional)	National legislative body responsible for considering and enacting federal statutory laws.	Exercises legislative oversight, reviews and debates proposed legislation including Draft Bill No. 14 on AI regulation.
Ministry of Commerce and Industries	Government ministry responsible for industrial policy, commercial oversight, and economic development.	Shares responsibility for sector-specific AI oversight and commercial regulation under proposed legal frameworks.