AI Regulation Costa Rica

Costa Rica is positioning itself as a regional leader in artificial intelligence regulation and governance in Central America. With the launch of its National Artificial Intelligence Strategy (ENIA) for 2024-2027, the country has taken a significant step toward establishing a comprehensive framework for the ethical and responsible development of AI technologies. This strategic initiative places Costa Rica at the forefront of AI governance in the region, balancing innovation with robust regulatory oversight.

 

The Evolution of AI Legal Framework in Costa Rica

Costa Rica's journey toward AI regulation began with its digital transformation initiatives as part of the country's bicentennial celebrations. In 2018, the Ministry of Science, Technology, and Telecommunications (MICITT) issued directives focused on digital government development and efficient use of digital technologies in the public sector. These early steps laid the groundwork for more specific AI governance measures, aligning with technological advancements.

A pivotal moment came in 2020 with the establishment of the National Laboratory for AI, resulting from cooperation between MICITT and the National High Technology Center (Cenat). This initiative aimed to promote AI-supported solutions to national challenges through public-private collaboration and international cooperation, enhancing AI strategy adherence.

The most significant development occurred in October 2024, when Costa Rica became the first country in Central America to launch a National Artificial Intelligence Strategy. This comprehensive framework prioritizes ethical principles such as human dignity, transparency, and fairness, ensuring AI development benefits all citizens while reducing social inequality and promoting inclusion.

 

Key Components of Costa Rica's AI Regulatory Approach

 

Ethical Principles and Human-Centered Development

Costa Rica's AI regulatory framework is built on a foundation of ethical principles that prioritize human dignity, oversight, transparency, and equity. The ENIA emphasizes that AI should be developed with a people-first mentality, focusing on enhancing quality of life for all Costa Ricans rather than merely pursuing technological advancement.

This approach aligns with global best practices in AI governance and reflects Costa Rica's commitment to responsible innovation. By placing ethical considerations at the center of its regulatory framework, Costa Rica aims to mitigate potential risks associated with AI while maximizing its societal benefits, respecting human rights principles.

 

Technical Infrastructure and Capacity Building

The ENIA outlines plans for establishing a National Center of Excellence for AI and deploying 5G networks to strengthen Costa Rica's digital infrastructure. These initiatives are crucial for building the technical capacity needed to implement and enforce AI regulations effectively.

Additionally, Costa Rica is investing in human capital development, recognizing that a skilled workforce is essential for both AI innovation and regulatory oversight. This focus on technical infrastructure and human capabilities reflects a comprehensive approach to AI governance.

 

Regulatory Framework and Risk Management

Costa Rica is developing specific technical and ethical guidelines for AI development, including policies on data privacy, cybersecurity, and risk management. This regulatory framework aims to ensure that AI systems deployed in Costa Rica are safe, secure, and aligned with the country's values and priorities.

The country's approach to AI regulation is notable for its emphasis on proactive risk management rather than reactive responses to problems. By anticipating potential challenges and establishing clear guidelines in advance, Costa Rica aims to create a stable and predictable environment for AI development, ensuring AI systems compliance.

 

Data Protection and Privacy About AI Regulation in Costa Rica

 

Data privacy in Costa Rica is currently governed by two primary laws:

1. Law No. 7975 (Undisclosed Information Law), which criminalizes the unauthorized disclosure of confidential and personal information
2. Law No. 8968 (Protection in the Handling of Personal Data of Individuals), which regulates companies managing databases containing personal information

 

The Agency for the Protection of Individual's Data (PRODHAB) is responsible for enforcing compliance with these laws, despite some limitations. This transparency in legal adherence is crucial for ensuring data security.

 

Alignment with GDPR and International Standards

The Costa Rican Congress is considering a bill that seeks to fully amend the existing data protection laws and align them with the principles outlined in the EU General Data Protection Regulation (GDPR). According to the International Association of Privacy Professionals (IAPP), the Personal Data Protection Law, Bill No. 23097, is positioned for its first plenary debate and shows strong potential for approval in the first quarter of 2025.

This GDPR-aligned legislation would modernize Costa Rica's data protection framework, with implementation expected in 2026. The proposed changes would significantly impact AI development and deployment in Costa Rica, establishing stronger protections for personal data used in AI systems.

 

International Collaboration and Global Positioning

Costa Rica is actively participating in international forums on AI governance, including the OECD AI Governance Committee and the Global Partnership on AI. This engagement allows Costa Rica to contribute to global discussions on AI regulation while learning valuable insights from other countries' experiences.

By positioning itself as a regional leader in AI governance, Costa Rica aims to attract investment and talent in the AI sector. The country's commitment to ethical AI development creates opportunities for businesses that prioritize responsible innovation and regulatory compliance.

 

Challenges and Opportunities in Costa Rica's AI Regulatory Landscape

 

Addressing Regulatory Gaps

Despite promising initiatives, Costa Rica's legal framework for AI regulation still has significant gaps. The country currently lacks a publicly accessible, AI-specific auditing framework, highlighting the urgent need for more comprehensive regulatory tools.

Additionally, the existing regulations surrounding intellectual property, data privacy, and data protection have limitations that could impede the full realization of AI's potential. Addressing these gaps will be crucial for Costa Rica's continued leadership in AI governance.

 

Opportunities for Business and Innovation

The proactive approach to AI regulation in Costa Rica creates opportunities for businesses that prioritize ethical AI development. By establishing clear guidelines and expectations, the regulatory framework provides certainty for investors and innovators in the AI space.

Furthermore, Costa Rica's emphasis on AI governance and ethical development aligns with global trends toward more responsible AI. Companies that embrace these principles may gain competitive advantages in both domestic and international markets.

 

Costa Rica AI Compliance Roadmap

Organizations operating in Costa Rica should take several steps to prepare for the evolving AI regulatory landscape:

1. Stay informed about developments in Costa Rica's AI regulatory framework, particularly the implementation of the National Artificial Intelligence Strategy and potential changes to data protection laws
2. Assess AI systems for compliance with ethical principles emphasized in Costa Rica's approach, including human dignity, transparency, and fairness
3. Implement robust data governance practices that anticipate stricter data protection requirements aligned with GDPR principles
4. Engage with regulatory authorities and industry associations to contribute to the development of AI governance frameworks
5. Invest in building internal capacity for AI governance and compliance, including training for relevant staff

 

By taking these proactive steps, organizations can navigate Costa Rica's emerging AI regulatory landscape while contributing to the responsible development of AI technologies in the region.

For more information on AI regulatory compliance and governance, contact Nemko Digital to learn how our expertise can help your organization thrive in this evolving landscape.