Panama’s Digital Future: AI, Regulation, and the Opportunity Ahead

As featured in CAPATEC’s C-Tech Member series

Gabriel Silva, Of Counsel at LOVILL, was recently featured in C-Tech Member — a series by CAPATEC, Panama’s technology and telecommunications industry association, that highlights leaders contributing to the country’s digital conversation. In this edition, Gabriel shared his perspective on what Panama needs to become a leading digital hub in the region.

Panama’s starting position

Panama already holds several structural advantages. The country serves as a landing point for submarine cables carrying a significant share of regional internet traffic. It also benefits from strong connectivity, renewable energy capacity, and overall stability. However, Gabriel noted that Panama is advancing below its potential. Technical talent formation is not keeping pace with market demand. Moreover, while some government processes have been digitized, the underlying bureaucracy often remains in place.

What technology investors look for

According to Gabriel, technology and AI investors look for three things: legal certainty, talent, and competitive energy. If a country falls short on any one of them, investment moves elsewhere. He pointed to Panama’s National AI Strategy — currently in development with Georgia Tech through SENACYT — as a step in the right direction. Nevertheless, he emphasized that the broader shift required is cultural, not just regulatory.

Risk-based regulation as the path forward

On the regulatory framework, Gabriel argued against two extremes: regulatory vacuum and overregulation. Instead, he advocated for a risk-based, technology-neutral approach aligned with international standards. He also highlighted the need to modernize visa and work permit processes and to invest in workforce training. As reference models, he cited Singapore’s target of upskilling 100,000 workers in AI by 2029 and Estonia’s near-fully digital government services.

Transparency and AI governance in the public sector

Gabriel also addressed accountability in government. He argued that publishing data in PDF format does not constitute transparency. Instead, useful, interoperable, and timely information is what matters. Furthermore, he flagged the growing importance of algorithmic governance. As public decisions increasingly involve AI systems, citizens have a right to understand how those decisions are made. There must always be a responsible human actor behind them — not an opaque model.

The orange economy: an underestimated opportunity

Finally, Gabriel described Panama’s creative economy as a consistently underestimated asset. The country has cultural identity, strong connectivity, and existing creative talent. However, the missing elements are intellectual property protection, access to capital, hybrid training, and a policy shift. He argued that the state should treat culture as a strategic export sector — with incentives and measurable outcomes — rather than as a budget expense.


Read the full interview (in Spanish): C-Tech Member | Gabriel Silva — CAPATEC

Key contact

Share:

Related

How can we help you?

We advise on complex and cross-border matters with a strategic, business-oriented approach.

Contact us to begin the conversation.

LOVILL - office