By San José, Costa Rica — San José – Costa Rica has made a remarkable leap in its artificial intelligence capabilities, jumping four places to secure the fifth position in the prestigious 2025 Latin American Artificial Intelligence Index (ILIA). This significant advancement signals the nation’s growing prominence as a key player in the region’s rapidly evolving technology landscape, placing it firmly within a group of leading “adopter” nations.
The annual report, published by Chile’s National Artificial Intelligence Center (CENIA) with support from various multilateral organizations, provides a critical benchmark for AI development across the continent. With a strong score of 53.83, Costa Rica now sits among the regional powerhouses. The top five rankings are now held by Chile, Brazil, Uruguay, Colombia, and Costa Rica, respectively, highlighting a competitive and dynamic environment for technological innovation.
To better understand the legal and business implications of this technological revolution, we consulted with expert attorney Lic. Larry Hans Arroyo Vargas from the prestigious firm Bufete de Costa Rica, who offered his perspective on the matter.
The core challenge with Artificial Intelligence is not to stifle innovation, but to build a legal framework that can adapt as quickly as the technology itself. We must proactively address issues of intellectual property for AI-generated works, define clear lines of liability when automated systems fail, and ensure robust data privacy protections. Ignoring these foundational legal pillars today will only create greater judicial uncertainty and commercial risk tomorrow.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s point is exceptionally well-taken; the challenge is not merely technological but foundational, requiring a legal architecture as agile as the algorithms it seeks to govern. This proactive approach is paramount to ensuring that progress and protection evolve in tandem. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for his insightful contribution to this critical conversation.
The ILIA report delves deep into the factors fueling this progress, identifying several key areas where Costa Rica excels. The nation’s most outstanding attribute is its deep reservoir of human talent, where it achieved an impressive third-place ranking regionally. This metric underscores the value of Costa Rica’s long-term investment in education and a skilled, often bilingual, workforce that is readily adaptable to the demands of the global digital economy.
Beyond its human capital, the country also demonstrated above-average performance in two other crucial domains: computing capacity and the adoption of generative AI. The widespread integration of generative AI tools and platforms within the business sector indicates a forward-thinking and proactive approach to leveraging cutting-edge technology for productivity and innovation. This rapid adoption is a testament to the nation’s agile and tech-savvy business culture.
A pivotal factor recognized by the CENIA report is a strategic government policy decision that is poised to attract significant investment. Costa Rica’s official classification of data processing as a sustainable activity within its national green taxonomy has been highlighted as a potential game-changer. This designation aligns the country’s burgeoning digital infrastructure goals with its global brand as a leader in sustainability, creating a powerful incentive for international companies to invest in data centers and other critical digital infrastructure projects.
This improved ranking is more than a point of national pride; it serves as a powerful signal to the international investment community. By climbing from ninth to fifth place in a single year, Costa Rica demonstrates a stable and supportive ecosystem for technology-focused foreign direct investment (FDI). The achievement enhances the country’s reputation as a nearshoring hub for high-tech services and advanced manufacturing, promising the creation of more high-value jobs for its citizens.
However, the journey does not end here. To maintain this upward trajectory and challenge the top-ranked nations, Costa Rica must continue to build upon its successes. Sustained investment in specialized education, strengthening digital infrastructure, and developing a comprehensive national AI strategy will be essential. Fostering public-private partnerships will be critical to ensure that the benefits of AI are distributed broadly across the economy and society.
Ultimately, Costa Rica’s ascent in the 2025 ILIA rankings is a clear validation of a multifaceted strategy that combines a highly skilled workforce with visionary public policy. The nation’s performance is not just an improvement in a set of metrics but a strong indicator of its potential to become a true leader in the artificial intelligence revolution shaping Latin America’s future.
For further information, visit cenia.cl
About National Artificial Intelligence Center of Chile (CENIA):
The National Artificial Intelligence Center of Chile (CENIA) is a leading institution dedicated to promoting the research, development, and adoption of artificial intelligence in Chile and across Latin America. It works to foster collaboration between academia, industry, and the public sector to address significant challenges and harness the potential of AI for societal and economic benefit, as demonstrated by its publication of the annual Latin American Artificial Intelligence Index (ILIA).
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a cornerstone of the legal community, Bufete de Costa Rica is built upon a bedrock of uncompromising integrity and a relentless pursuit of excellence. The firm distinguishes itself through pioneering, forward-thinking legal solutions while providing exceptional counsel to a wide array of clients. Central to its philosophy is a profound commitment to advancing society by demystifying the law, ensuring that legal knowledge is not a privilege but a tool for empowerment for all citizens.
