The State of Technology in Panama’s Businesses: What the Data Says

The data shows a well-connected country whose businesses are not using or protecting technology at the level its economy would suggest. In the 2025 Network Readiness Index, Panama ranks 83rd of 127 economies and 121st on the sub-pillar that looks at businesses. In 2026, only 11% of 237 surveyed companies had AI integrated and creating value, and just 36% of 88 private companies were prepared for a cybersecurity incident. The digital transformation gap in Panama's businesses is not about internet access: it is about management, processes and security.

A connected country, with businesses lagging behind

The Network Readiness Index (NRI), published by the Portulans Institute, compares 127 economies across 53 variables grouped into four pillars: technology, people, governance and impact. In the 2025 edition Panama ranked 83rd, with a score of 43.82. The average for high-income countries was 62.71, and for the Americas, 47.15.

The detail says more than the overall rank. On the individuals sub-pillar, Panama is 30th in the world. On the businesses sub-pillar it falls to 121st of 127, and its other weak spots are inclusion (112th) and economy (103rd).

The report sums it up plainly: Panama sits well below what its income level would predict. It ranks 51st among high-income countries, scores below that group’s average on all four pillars and is 13th in the Americas. In plain terms, people are connected and use technology every day, but organizations are not turning it into productivity at the same pace.

Being online is not the same as being transformed

Access is not the main problem. According to DataReportal, 3.60 million people were using the internet in Panama at the end of 2025, 78.4% of the population. The large majority of the population is already online.

The business base, on the other hand, is mostly small companies. A Mastercard Advisors study released in November 2025 found that micro, small and medium-sized businesses make up 97% of Panama’s companies and contribute 17% of GDP, and that only 4% of microbusinesses have access to formal credit. When capital is tight and nobody is dedicated to IT, digitization tends to happen piece by piece: WhatsApp for sales, a spreadsheet for inventory, a free email account and the important files on one person’s laptop.

That is being online, not being transformed. A transformed company runs its processes, data and security as one system: information is backed up, each person reaches only what they need, and someone is accountable for keeping everything running.

AI is arriving before the rules

AI is the latest example of the gap. The Economic Activity Report by the consulting firm Eleménte, cited by Infobae in September 2026, surveyed 237 companies: 39% have no clear owner or process for managing AI, 38% oversee it in isolated departments, and only 11% report having it integrated and creating value.

The government has already moved: the Cabinet Council approved Panama’s National Artificial Intelligence Strategy through Resolution 89-26. For businesses, the immediate risk is not missing out on AI but employees using it on their own with customer data, contracts or financials. We cover this step by step in our guide to secure AI adoption in the enterprise.

Cybersecurity: the weakest link

Panama is as exposed as any connected economy. According to Fortinet’s FortiGuard Labs 2026 Threat Landscape Report, the country recorded 4.8 billion cyberattack attempts and 3 billion active scans during 2025. These are detected attempts, not successful attacks, but they show that any device exposed to the internet is being probed all the time.

Real incidents are growing too. CSIRT Panamá, the incident response team of the National Authority for Government Innovation (AIG), reported that incidents in 2025 tripled compared with 2024 and that phishing accounted for 6 out of 10. Compromised accounts and malware came next.

Preparedness is the bigger concern. At a cybersecurity and digital transformation forum covered by La Prensa in September 2026, a diagnostic of 88 private companies in Panama was presented: only 36% were prepared for an incident, and 64% did not know how to respond to an attack. The same forum noted that Panamanian companies spend less than 5% of their technology budget on cybersecurity.

At the national level, the International Telecommunication Union gave Panama 67 out of 100 on its 2024 Global Cybersecurity Index, according to the country profile on Internet Society Pulse. That index measures the country’s capacity to prevent and manage incidents, not any single company’s: protecting your network, accounts and data is still up to you.

What falling behind costs

IBM’s 2026 Cost of a Data Breach report put the average cost of a data breach in Latin America at USD 4.65 million, based on 28 organizations in Mexico, Argentina, Chile and Colombia, and found that almost 19% of malicious attacks were AI-generated. It is an average for organizations in other countries, not Panama, but it shows the order of magnitude. For a small company, the cost shows up as days without invoicing, lost customers and hours spent recovering data.

Verizon’s 2026 Data Breach Investigations Report shows how attackers get in. In Latin America and the Caribbean, exploitation of vulnerabilities was the initial access vector in 44% of the breaches analyzed, followed by phishing at 20%. For small and medium-sized businesses, the report notes that ransomware hits them disproportionately and that they face many of the same threats as other organizations, often with fewer resources.

There is a legal obligation as well. Panama’s Law 81 on personal data protection took effect on March 29, 2021, and was regulated by Executive Decree 285 of 2021. If your company handles data about customers, employees or patients, it must put the necessary protocols in place to protect it.

How to read these numbers

Each source measures something different. The NRI compares countries using public indicators; the company surveys are samples of dozens or hundreds of firms; attack attempts count detected malicious traffic, not damage. None of them gives a single percentage of Panamanian companies that are behind.

They all point the same way, though: connectivity has moved faster than management. Companies have internet, phones and cloud apps, but many lack an inventory of their devices, someone accountable for security, tested backups or a plan for when something breaks. That is the gap worth closing first.

Where to start

You do not need a year-long project to change the picture. These decisions can be made this quarter, and they target exactly what the data shows:

• An owner and an inventory. Know which devices, licenses, accounts and data you have, and who is accountable for each.
• MFA on every account. Phishing is the most common incident in Panama, and multi-factor authentication keeps a stolen password from being enough to get in.
• Updates applied. Firewalls, servers and computers on current patches, because exploiting vulnerabilities is the main way in across the region.
• Tested backups. A copy kept outside the office and a test restore at regular intervals, not only on the day you need it.
• A response plan. Who calls whom, what gets disconnected and how you communicate, written before you need it.
• Rules for AI. Which tools are approved and which data is never shared with them.

How Techno Sistemas helps

Since 2014 we have worked with companies in Panama in the three areas where the data shows the gap: IT management, security and technology adoption. With our monthly IT support plans (in Spanish), your company has a team looking after its computers, Microsoft 365 accounts, network and firewalls, with remote and on-site support.

If you want to know where you stand today, our IT and infrastructure consulting (in Spanish) reviews your network, firewall, access and internet exposure, and gives you a plan with clear priorities. To protect the network we work with Fortinet, Palo Alto Networks and Cloudflare and recommend what fits your case, as explained on our cybersecurity in Panama page. Companies setting up in Panama can find an overview of our services on our English page.

Frequently asked questions

How advanced is Panama in digital transformation?

In the 2025 Network Readiness Index, Panama ranks 83rd of 127 economies. It does well on individual use of technology (30th) and poorly on the businesses sub-pillar (121st). The report concludes that the country performs below what its income level would predict.

How many cyberattacks does Panama receive?

Fortinet’s FortiGuard Labs recorded 4.8 billion cyberattack attempts against Panama in 2025. These are detected attempts, not successful attacks. According to the AIG, incidents handled by CSIRT Panamá in 2025 tripled compared with 2024.

What is the most common cybersecurity incident in Panama?

Phishing. In 2025 it accounted for 6 out of 10 incidents recorded by CSIRT Panamá, followed by compromised accounts and malware. That is why MFA and staff awareness training are among the first measures worth taking.

What does Panama's data protection law require of my company?

Law 81 on personal data protection has been in force since March 29, 2021, and was regulated by Executive Decree 285 of 2021. If your company handles other people’s personal data, it must put protocols in place to protect it. Check the details of your case with your legal advisor.

How can a small business without an IT department close the gap?

With a clear owner and a monthly support plan that covers devices, accounts, network, backups and security. The company gets an IT team without hiring a full one, and improvements happen by priority rather than in emergencies.

If you want to close this gap in your company, we start by reviewing your IT and security and propose a support plan that fits. See our monthly IT support plans (in Spanish)

Sources

1. Portulans Institute – Network Readiness Index 2025: Panama (2025): Rank 83 of 127 and score of 43.82; individuals (30th), businesses (121st), inclusion (112th) and economy (103rd) sub-pillars; 51st among high-income countries and 13th in the Americas; performance below what its income predicts.
2. DataReportal – Digital 2026: Panama (2025): 3.60 million internet users, 78.4% of the population, at the end of 2025.
3. La Prensa (press release) – Digitalización y acceso a capital impulsan el crecimiento de las MiPYMEs panameñas, revela estudio de Mastercard (2025): Mastercard Advisors study: MSMEs are 97% of companies and contribute 17% of GDP; only 4% of microbusinesses access formal credit.
4. Infobae – Panamá estrena estrategia de IA, pero su integración en las empresas sigue rezagada (2026): Eleménte survey of 237 companies: 39% without an owner or process for AI, 38% oversee it by department, 11% have it integrated and creating value; National AI Strategy, Resolution 89-26.
5. DPL News – Panamá registró 4.8 mil millones de intentos de ciberataques impulsados por IA (2026): FortiGuard Labs 2026 Threat Landscape Report: 4.8 billion cyberattack attempts and 3 billion active scans in Panama during 2025.
6. Panamá América – Phishing es el principal ataque informático que se registra en el país (2026): AIG's CSIRT Panamá: incidents in 2025 tripled compared with 2024 and phishing was 6 out of 10, followed by compromised accounts and malware.
7. La Prensa – Panamá recibe 4,000 millones de intentos de ciberataques al año (2026): Diagnostic of 88 private companies: 36% prepared for an incident and 64% did not know how to respond; less than 5% of the technology budget goes to cybersecurity.
8. Internet Society Pulse – Panama: ITU Global Cybersecurity Index 2024: Panama scores 67 out of 100 on its capacity to prevent and manage incidents.
9. IBM – Estudio de IBM: Uno de cada cinco ataques maliciosos son habilitados por IA en América Latina, con un costo promedio de $4.65 millones de dólares para las empresas (2026): Average cost of USD 4.65 million per breach in Latin America; sample of 28 organizations in Mexico, Argentina, Chile and Colombia; almost 19% of malicious attacks AI-generated.
10. Verizon – 2026 Data Breach Investigations Report, Executive Summary (2026): Latin America and the Caribbean: exploitation of vulnerabilities in 44% of breaches and phishing in 20%; small businesses disproportionately hit by ransomware.
11. RSM Panamá – Ley 81 – Protección de datos personales: In force since March 29, 2021, regulated by Executive Decree 285 of 2021, with the obligation to set protocols that protect third-party data.