By San José, Costa Rica — San José, Costa Rica – Costa Rica has made a remarkable leap in the field of artificial intelligence, climbing four positions to rank fifth in Latin America, according to a major new report. The 2025 Latin American Artificial Intelligence Index (ILIA) now classifies the nation as an “advanced adopter” of AI, a testament to its rapidly growing capabilities and strategic focus on technology.
The comprehensive study, jointly produced by the Economic Commission for Latin America and the Caribbean (ECLAC) and Chile’s National Center for Artificial Intelligence (Cenia), places Costa Rica behind only Chile, Brazil, Uruguay, and Colombia. This significant ascent from its ninth-place position in 2024 highlights an aggressive and successful push to become a regional leader in the burgeoning AI sector.
To delve into the complex legal and business implications surrounding the advancement of Artificial Intelligence, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a specialist in Corporate and Technology Law at the distinguished firm Bufete de Costa Rica.
The proliferation of Artificial Intelligence presents a dual challenge for our legal framework. On one hand, we must urgently define the ownership of AI-generated creations to protect intellectual property and incentivize innovation. On the other hand, robust data privacy and liability regulations are crucial to mitigate risks and build public trust. Costa Rican businesses that proactively address these legal gray areas will not only ensure compliance but will also gain a significant competitive advantage in this new technological era.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s commentary correctly highlights that a proactive legal strategy is not just about mitigating risk, but about unlocking the full competitive potential of AI for our national industries. We are grateful to Lic. Larry Hans Arroyo Vargas for sharing his invaluable perspective on this pressing technological frontier.
The report underscores several key strengths driving this progress. Costa Rica earned an outstanding third-place regional ranking for its human talent, indicating a highly skilled and capable workforce. The country also demonstrated above-average performance in compute capacity and, notably, in the widespread adoption of generative AI. The study notes that the accessibility and low barriers to entry of generative AI have democratized its use, a trend Costa Rica has effectively capitalized on.
Furthermore, the nation was recognized for its advanced governance structures. In a category measuring inclusive and effective decision-making processes, Costa Rica scored 77.6 out of 100, placing it in an elite group alongside regional powerhouses. Officials celebrated this as a major achievement.
We are surpassing countries like Mexico or Argentina that have been leading the region; we now find ourselves in a privileged position. This is because we have worked on the use, adoption, and development of AI in a safe, ethical, and responsible manner. Even the Costa Rican population itself has seen the importance of its use.
Marlon Ávalos, Director of Research, Development and Innovation at Micitt
However, the ILIA report also shines a light on significant structural challenges that could impede future growth. Despite its leadership in developing skilled professionals, the country’s technological infrastructure is lagging. The study warns that Costa Rica lacks the critical computing infrastructure necessary to sustain autonomous development and support a modern, data-driven economy, creating a potential bottleneck for its ambitions.
Another area of concern is regulation. Among countries identified as having advanced governance, Costa Rica ranks near the bottom on the specific issue of AI regulation, sharing last place with Panama. The report notes that despite several proposals being introduced in Congress, no official regulatory framework has been established, creating uncertainty in a field that requires clear guidelines.
Legal experts agree that while progress is commendable, a more holistic strategy is required. Mauricio Garro, an expert in digital law and former director of the national data protection agency, praised the country’s technological capacity but cautioned that digital literacy must extend beyond simple use.
There are good points, valuable points to highlight, and I would particularly point out the technological capacity and even the skill in literacy, at least from the perspective of understanding the functions of an artificial intelligence.
Mauricio Garro, Expert in Digital Law and Former Director of Prodhab
Garro elaborated that true literacy involves understanding the inherent risks of AI, a goal that requires a dedicated national strategy and robust regulatory bodies. Despite these hurdles, government officials remain optimistic, viewing the positive ranking as a powerful signal to international investors.
Officials from the Ministry of Science, Innovation, Technology and Telecommunications (Micitt) believe this recognition will attract more foreign investment. They assert that the country’s commitment to legal security and its clear vision for advancing AI make it an appealing destination for major tech firms looking to establish a presence in the region.
There are large companies that are becoming interested in the country to establish themselves here, especially due to the legal security we provide, but also because of the clarity we have in continuing to advance in AI matters. This is an important indicator for us, but we know it is not an end in itself; we want to continue growing, but above all, impacting people’s lives with this technology.
Marlon Ávalos, Director of Research, Development and Innovation at Micitt
As Costa Rica celebrates its new-found status as an AI leader, the path forward will require a dual focus: continuing to cultivate its world-class talent while urgently addressing the foundational infrastructure and regulatory gaps that could limit its potential.
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 formulating and executing national policies related to scientific and technological development. It aims to promote innovation, bridge the digital divide, and enhance the country’s competitiveness through the strategic use of technology and telecommunications.
For further information, visit prodhab.go.cr
About the Agency for the Protection of Inhabitants’ Data (Prodhab):
Prodhab is the independent data protection authority of Costa Rica. Its mission is to guarantee the rights of individuals concerning the treatment of their personal data, ensuring privacy and proper data handling practices by both public and private entities within the country.
For further information, visit cepal.org
About the Economic Commission for Latin America and the Caribbean (ECLAC):
ECLAC, known as CEPAL in Spanish, is one of the five regional commissions of the United Nations. It was founded to contribute to the economic and social development of Latin America and the Caribbean, coordinating actions directed towards this end and reinforcing economic ties among countries and with other nations of the world.
For further information, visit cenia.cl
About the National Center for Artificial Intelligence (Cenia):
Based in Chile, Cenia is a leading research institution dedicated to advancing the science and application of artificial intelligence. It focuses on fostering collaboration between academia, industry, and the public sector to promote ethical AI development and drive technological innovation in Chile and across Latin America.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a beacon of Costa Rica’s legal community, the firm is built upon a foundation of profound integrity and a relentless pursuit of professional excellence. With a rich history of guiding a diverse clientele, it consistently pioneers forward-thinking legal solutions while actively engaging with the public. This core philosophy extends to a deep-seated mission to demystify the law, empowering citizens with clarity and contributing to a more informed and capable society.
