Like elsewhere in Latin America, the picturesque Central American nation of Costa Rica -- more well known for its flora and fauna than microchips and processors -- has been looking to artificial intelligence (AI) to help modernize public services and upskill its workforce to be better equipped for an increasingly digital global economy.
A recent report published by the country's economic development agency Procomer found that 76% of Costa Rican companies are using generative AI tools. The survey, which analyzed a sample of 86 companies, found that 33% are developing solutions based on generative artificial intelligence (genAI) and "37% carry out formal activities in the area of artificial intelligence, including machine learning, intelligent digital agents, and natural language processing."
The outgoing administration of Rodrigo Chaves -- who leaves office in May -- issued its first AI strategy in 2024. The strategy aims to promote ethical frameworks for AI regulation, upskilling populations for responsible AI use, using AI to improve public sector services, and encourage research and development with AI across different sectors.
The country's Minister of Science, Innovation, Technology and Telecommunications, Paula Bogantes Zamora, said the Chaves administration was committed to the technology as a key step towards strengthening the country's competitiveness and positioning it within the global discussion about AI.
"When the current administration took office, Costa Rica did not have a national roadmap in this area," Bogantes told Latin Times. "Faced with this situation, the government designed a strategy that sets out objectives, priorities and actions to integrate artificial intelligence across various sectors. This approach aims to ensure that the technology benefits the public sector, the productive sector and the general public."
Costa Rica spurring talks on AI ethics in the region
In November, Costa Rica convened the first National Dialogue on Ethics and Governance of Artificial Intelligence, with the support of the United Nations. The meeting was meant to help align AI development with human rights and sustainability objectives.
"Artificial intelligence is the most powerful tool of our generation. We can use it to close gaps or to deepen them to unimaginable levels. It is essential that we lead by example, moving from principles to practice, said Allegra Baiocchi, UN Resident Coordinator in Costa Rica, at the time.
Bogantes points out that Costa Rica has a plan to strengthen data usage, improve digital infrastructure, promote technological training and foster the development of AI-based solutions.
She also said that the government's strategy promotes an international vision, as Costa Rica recently brought the debate on artificial intelligence to the Organization for Economic Co-operation and Development (OECD) with the aim of promoting tools to help countries in the region design their own policies.
"This international project aims to provide a clear assessment of each country's progress in the field of artificial intelligence. The tool enables the identification of strengths, areas for improvement and best practices that can be replicated in different contexts. Furthermore, Costa Rica championed the idea that this platform can be used in any country, regardless of whether or not it belongs to the OECD," the minister explained.
Innovation: a key element for Costa Rica
Costa Rica's technology policy is also linked to its national innovation strategy. The government recognizes that innovation requires greater investment, technological infrastructure and a culture that encourages experimentation.
In this context, the country is seeking to build an ecosystem that fosters creativity and facilitates the development of new technological solutions. Furthermore, Bogantes notes that the strategy also promotes the creation of spaces where communities can access advanced technological tools.
For example, the government has supported the opening of innovation labs across different regions of the country; these centres are equipped with drones, 3D printers and virtual reality tools, enabling the development of technological solutions in collaboration with universities and communities.
The agricultural sector is an example of the success of its innovation policy. This industry represents one of the areas where Costa Rica is already experimenting with artificial intelligence. The minister explains that pilot projects use sensors, drones and data analysis to monitor crops and improve their productivity.
"These initiatives enable the optimization of resources such as water, fertilizers and sunlight, which benefits both producers and the country's technological development," she added.
The services sector too is seeing more interest in AI in Costa Rica and regionally. "We've witnessed a growing appetite in LatAm when it comes to AI, in both a personal and an enterprise level," said Drew Naukam, the CEO of Gorilla Logic, an AI software engineering company that has offices in Costa Rica. "There is definitely a level of excitement in what the technology can unlock and how quickly it's creating new opportunities."
Challenges to innovation and AI
One of the most significant challenges for Costa Rica is to increase investment in research, development and innovation.
On average, OECD countries allocate around 2.7% of their Gross Domestic Product to these activities. Costa Rica invests less than 0.3%, a figure that highlights the need to increase the resources allocated to innovation.
Despite the progress made, artificial intelligence also poses significant challenges. The automation of processes can transform the labor market and change the way businesses and governments operate. Some administrative or technical tasks could disappear, forcing countries to prepare their workforce for new digital skills.
"Against this backdrop, Costa Rica's Artificial Intelligence Strategy seeks to balance innovation and responsibility," Bogantes said. "The government aims to use artificial intelligence to improve public services, drive economic development and strengthen the country's digital transformation. At the same time, it seeks to ensure that the technology generates broad benefits for society and contributes to inclusive growth."
President-elect Laura Fernández Delgado will assume office in May.
Her policy outline signaled her administration would use AI heavily in improving healthcare, including in predictive medicine and patient services, as well as in areas such as education and improving efficiency in the public sector.
© 2025 Latin Times. All rights reserved. Do not reproduce without permission.
