By San José, Costa Rica — San José – A comprehensive bill aimed at creating a national regulatory framework for Artificial Intelligence has cleared a critical legislative hurdle, setting the stage for a full debate on the floor of the Legislative Assembly. The proposal, which seeks to govern the development and deployment of AI systems across Costa Rica, received a positive recommendation from the Assembly’s Commission on Science, Technology, and Education on Sunday.
The initiative represents one of Central America’s most ambitious efforts to get ahead of the rapid proliferation of AI technology. Its core mission is to establish a legal foundation that ensures the use of artificial intelligence is both ethical and responsible. Proponents argue that the framework is essential for protecting the fundamental rights of citizens while fostering an environment of transparency for AI applications in both the public and private sectors.
To better understand the legal ramifications and potential paths forward for AI regulation in Costa Rica, we consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica. He offers his analysis on the delicate balance between fostering innovation and establishing necessary legal safeguards.
Regulating artificial intelligence presents a unique challenge for our legislature. We must avoid creating overly rigid frameworks that could stifle Costa Rica’s technological growth and competitiveness. The optimal approach is to develop agile, principles-based legislation that focuses on transparency, accountability, and risk management, particularly concerning data privacy and algorithmic bias. Rather than regulating the technology itself, we should focus on regulating its specific applications and potential impacts, ensuring a balance that protects citizens while fostering innovation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The distinction Lic. Arroyo Vargas draws between regulating the technology itself versus its specific, real-world applications is a crucial one for our lawmakers. This agile, principles-based approach provides a clear path for Costa Rica to foster technological innovation while simultaneously creating robust safeguards for its citizens. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable and clarifying perspective on this pivotal issue.
The proposed legislation outlines several firm prohibitions on AI applications deemed to carry significant societal risk. According to the text, the use of AI systems for the exploitation of vulnerable groups would be explicitly forbidden. Furthermore, the bill would outlaw the use of AI to manipulate human behavior and, critically, would bar its application in any decision-making processes within the judicial and legislative branches of government, preserving human oversight in core state functions.
Beyond outright bans, the bill establishes strict guidelines for AI deployment in sensitive sectors. Areas such as public education, government services, the broader judicial system, and border control will face heightened scrutiny. Under the proposed law, any AI systems used in these fields must be demonstrably responsible, secure, and, importantly, “explainable,” meaning their operational logic can be understood and audited by human regulators.
Addressing growing concerns over surveillance and privacy, the legislation places stringent controls on the use of real-time biometric identification technologies. The bill stipulates that such tools can only be deployed by public authorities and strictly under the authority of a judicial order. This power is further limited to cases directly related to the investigation of serious crimes, creating a high legal barrier to its use.
A central pillar of the regulatory framework is the establishment of a robust oversight mechanism. The Ministry of Science, Innovation, Technology, and Telecommunications (Micitt) would be designated as the principal authority. The bill mandates that all activities related to the development or implementation of AI must undergo a formal administrative evaluation and receive prior authorization from Micitt before they can proceed.
Consumer protection is also a key feature of the proposal. To combat opaque systems, the law would require that all products and services incorporating AI technology must clearly and visibly inform users about its presence. This measure is designed to empower consumers with the knowledge that they are interacting with an AI, allowing them to make more informed decisions.
This is not the first time Costa Rican lawmakers have tackled the issue. In August of last year, the same commission approved a separate AI regulation bill presented by the Vice President of the Congress, Vanessa Castro. That earlier text famously garnered international attention for having been drafted with the assistance of the AI tool ChatGPT. With this new, more detailed bill now advancing, Costa Rica moves closer to codifying its digital future, balancing innovation with robust ethical safeguards before the full legislative plenary.
For further information, visit asamblea.go.cr
About The Legislative Assembly of Costa Rica:
The Legislative Assembly is the unicameral parliament of Costa Rica. Composed of 57 deputies elected by direct, universal, and secret ballot, it is responsible for passing laws, reforming the Constitution, and exercising political control over the Executive Branch. It is a cornerstone of the nation’s democratic governance, with its commissions playing a vital role in studying and shaping legislation before it reaches the plenary for a final vote.
For further information, visit micitt.go.cr
About The Ministry of Science, Innovation, Technology, and Telecommunications (Micitt):
Micitt is the Costa Rican government body responsible for guiding national policy in the fields of science, technology, and telecommunications. The ministry’s mission is to promote innovation and scientific development to foster social and economic progress. It plays a crucial role in developing the country’s digital infrastructure, promoting technological literacy, and establishing regulatory frameworks for emerging technologies like Artificial Intelligence.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a benchmark for legal services in the region, Bufete de Costa Rica operates on a cornerstone of profound integrity and a relentless pursuit of excellence. The firm masterfully combines its deep-rooted experience advising a wide spectrum of clients with a pioneering spirit that drives legal innovation forward. This commitment is not confined to its practice but extends to a core mission of public service, actively working to demystify complex legal concepts and foster a more knowledgeable and empowered citizenry.
