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    AI in Panama: the rules, the readiness and where to start

    Last checked: 29 October 2026

    What should a company in Panama know before starting with AI?

    Panama has no AI law in force as of 29 October 2026. Law 81 of 2019 on personal data protection, enforced by ANTAI, applies to AI today and already gives people a right not to be subject to some decisions based only on automated processing. An AI governance bill passed the National Assembly in August 2026, but the President returned it with partial objections in September.

    At a glance

    Panama at a glance

    Key facts about Panama
    Data protection lawLey 81 de 26 de marzo de 2019 sobre Protección de Datos Personales, in force since March 2021
    RegulatorAutoridad Nacional de Transparencia y Acceso a la Información (ANTAI); sector regulators for regulated industries
    AI policyNational AI Strategy, approved by the Cabinet in 2026. No AI law in force as of 29 October 2026
    Time zoneUTC-5 all year, no daylight saving (India is 10.5 hours ahead)
    CurrencyPAB (balboa) and USD, used at par
    Business languageSpanish, with English common in business

    Why now

    Why Panama is worth watching

    Each point links to the document it comes from.

    • President Mulino presented a National Advanced Technologies Agenda on 31 July 2026, with a National AI Strategy and a semiconductor strategy.[4]

    • The Cabinet adopted the National AI Strategy as public policy, with the aim of making Panama a trusted AI innovation hub for Latin America.[5]

    • The agenda includes 10,000 Talent Up Panamá scholarships, run with Google, the IDB and the Technological University of Panama.[4]

    • The National Assembly passed Bill 588 on adaptive AI governance in third debate on 19 August 2026.[2]

    • On 28 September 2026 the President returned Bill 588 to the Assembly with partial objections, so it is not law yet.[3]

    The rules

    The rules that matter for AI

    What each law or policy means when you build or buy an AI system.

    Ley 81 de 2019 sobre Protección de Datos Personales

    In force2019Processing needs consent, a contract, a legal duty or a special law, and people must be told the purpose (article 6). A person has the right not to be subject to a decision based only on automated processing that has negative legal effects and evaluates things like health, work performance, credit or reliability, unless they consented, it is needed for a contract, or a special law allows it (article 19).[1]

    Ley 81 de 2019: transfers and sanctions

    In force2019Transfers need prior, informed and unequivocal consent unless an exception applies (article 25). Article 33 lists lawful grounds for transfers, including a recipient country with equal or higher protection and contract clauses with data protection safeguards. ANTAI sets fines from B/.1,000 to B/.10,000 and can close databases or suspend processing for very serious breaches (articles 36 and 43).[1]

    Bill 588 of 2026 on adaptive governance of artificial intelligence

    Draft2026Passed by the Assembly but returned with partial objections on 28 September 2026. A law-firm reading says it would sort AI systems by impact, require meaningful human oversight for high and critical impact decisions, and give people a right to an explanation and to challenge decisions, with SENACYT issuing guidelines. It has no penalty regime of its own.[2]

    Where AI fits first

    Where AI fits first

    Banking and finance

    Document review, fraud alerts and customer service in Spanish and English, with staff deciding on credit.

    Credit scoring based only on automated processing falls under article 19 of Law 81. For regulated sectors, complaints go first to the sector regulator.[1]

    Logistics and the canal economy

    Forecasting cargo volumes, reading shipping documents and planning routes.

    Logistics is named as a priority sector for AI adoption in the 2026 national agenda. Most of this work uses little personal data.[4]

    Health care

    Drafting clinical notes and appointment handling, with clinicians making decisions.

    Article 19 names health status among the evaluations covered by the automated decision right, and article 13 restricts transfers of sensitive data.[1]

    Your first steps

    Your first steps

    1. Check the legal basis for each AI use of personal data under article 6 of Law 81, and record consent in a traceable way.
    2. List decisions your AI makes about people without human review, such as credit or hiring, and add a review step or a clear basis under article 19.
    3. Before using an AI provider abroad, confirm a lawful transfer ground under article 33, such as consent or contract clauses.
    4. Keep the transfer register that article 31 requires and be ready to show it to ANTAI.
    5. If you are in a regulated sector, check your sector regulator's rules as well as Law 81.
    6. Follow Bill 588 after the President's objections, since it could add human oversight and explanation duties.
    7. Map where the 2026 AI strategy offers training or programmes your staff can use.

    AI services for Panama

    AI consulting and development for teams in Panama

    We work remotely with companies in Panama, in your time zone, and keep your data under the rules described above.

    AI agents and automation

    Agents that finish multi-step work across your tools, with people approving what matters.
    Learn more

    Document Q&A (RAG)

    Answers from your own documents, with the source shown for every answer.
    Learn more

    AI governance and data protection

    Policies, review steps and audit trails that fit your local data law.
    Learn more

    Software and cloud engineering

    Web apps, integrations and cloud platforms built around your AI use case.
    Learn more

    How we work with you

    How we work with you

    We work remotely with clients worldwide, in the client's time zone. Panama is on UTC-5 all year and India on UTC+5:30, so India is 10.5 hours ahead. An Indian day of 9:30 to 18:30 ends at 08:00 in Panama, so there is no overlap in normal office hours. We agree a short call early in your morning, for example 08:00 to 09:00 Panama time, which is evening in India, and send written updates each day.

    Questions

    Common questions about AI in Panama

    Does Panama have an AI law?

    Not in force as of 29 October 2026. Bill 588 passed the Assembly in August 2026, but the President returned it with partial objections on 28 September. It only becomes law once published in the Gaceta Oficial.

    Can a customer refuse a decision made by our AI?

    Law 81 gives people a right not to be subject to a decision based only on automated processing that has negative legal effects. It does not apply if they consented, if the decision is needed for a contract, or if a special law allows it.

    Who enforces data protection?

    ANTAI, through a dedicated directorate. In sectors governed by special laws, people complain first to the sector regulator and can then go to ANTAI.

    How large are the fines?

    Law 81 sets fines between B/.1,000 and B/.10,000, with amounts fixed by ANTAI by severity. Very serious breaches can also lead to closure of databases or suspension of processing.

    Complimentary tools

    Try these first

    Three complimentary tools from our AI Toolkit that suit a team starting out.

    AI readiness score

    Answer a few questions and see where your team stands, in about five minutes.
    Open the tool

    AI use case triage

    Test an idea against data, risk and effort before you spend on it.
    Open the tool

    AI project cost estimator

    Get a rough build and run cost range for a first AI project.
    Open the tool

    Read next

    Sources

    Sources

    Facts checked on 29 October 2026. Numbers in square brackets above match this list.
    1. [1] Asamblea Nacional (text by SIJUSA), hosted by SINAPROC, Government of Panama, 2019-03-29. Ley N° 81 de 26 de marzo de 2019, Sobre Protección de Datos Personales(sinaproc.gob.pa)
      Full title and what we used it for

      Ley N° 81 de 26 de marzo de 2019, Sobre Protección de Datos Personales. Primary text, read in full in Spanish. Published in Gaceta Oficial 28.743-A of 29 March 2019; article 47 sets entry into force two years after promulgation. Used for articles 6, 13, 19, 25, 31, 33, 36 and 43. The regulation, Executive Decree 285 of 2021, was not reviewed.

    2. [2] Pacífica Legal, 2026-09-04. AI Governance Law: Adaptative Governance of Artificial Intelligence in…(pacifica.legal)
      Full title and what we used it for

      AI Governance Law: Adaptative Governance of Artificial Intelligence in Panama. Law-firm analysis, used for interpretation: the legislative steps of Bill 588 and its main content. We could not open the Assembly's own page because of a certificate error.

    3. [3] Panamá América, 2026-10-04. Presidente Mulino objeta ocho proyectos de ley en solo dos días(panamaamerica.com.pa)
      Full title and what we used it for

      Presidente Mulino objeta ocho proyectos de ley en solo dos días. Press report. Used for the partial objection to Bill 588 on 28 September 2026. The reasons were not given.

    4. [4] Mobile Time Latinoamérica, 2026-07-31. Panamá impulsará inversiones en IA y semiconductores(mobiletime.la)
      Full title and what we used it for

      Panamá impulsará inversiones en IA y semiconductores. Press report. Used for the National Advanced Technologies Agenda, priority sectors and the Talent Up Panamá scholarships.

    5. [5] Panamá América, 2026-08-11. Estrategia Nacional de IA: el plan para convertir a Panamá en 'Hub' tec…(panamaamerica.com.pa)
      Full title and what we used it for

      Estrategia Nacional de IA: el plan para convertir a Panamá en 'Hub' tecnológico. Press report. Used for Cabinet adoption of the strategy and its drafting by a SENACYT-coordinated commission. It gives the resolution as No. 89-26, while an October 2026 opinion piece in Destino Panamá cites Cabinet Resolution No. 75 of 2026, so we do not state the number.

    6. [6] Destino Panamá, 2026-10-17. Panamá aprueba su estrategia de inteligencia artificial(destinopanama.com.pa)
      Full title and what we used it for

      Panamá aprueba su estrategia de inteligencia artificial. Opinion column. Used only to note the conflicting resolution number and that the strategy has no consolidated budget by programme.

    This is general information, not legal advice. The AI strategy and Bill 588 are known here from press reports and a law-firm analysis, as the official pages could not be opened. Bill 588 may change after the President's objections. Check with a qualified Panamanian lawyer before you act. Facts checked on 29 October 2026.

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