Panama Bill Seeks Prison for AI-Generated Defamation

Panama's National Assembly is considering a new bill that would impose criminal penalties for using artificial intelligence to harm individuals' reputations. Proposed by Deputy Dana Castañeda, the legislation aims to amend the Penal Code to address the growing threat of AI-driven defamation and digital manipulation.

The draft law establishes a base penalty of three to six years in prison for anyone who uses AI, voice cloning, or manipulated images to create, disseminate, publish, or commercialize digital content that damages a person's honor. The penalties increase to five to seven years if aggravating factors are present, such as spreading the content via social media, acting anonymously, or doing so for profit or intimidation.

Deputy Castañeda stated that the bill intends to protect the honor of families, minors, and disabled individuals who are often collateral victims of smear campaigns. She emphasized that the legislation is not designed to stifle freedom of expression, noting that slander and libel against elected public officials are already decriminalized.

The proposal comes as technological advancements in AI and digital editing make it easier to create convincing but false content. Lawmakers believe existing legislation is insufficient to combat these new forms of reputational damage, particularly when targeting vulnerable populations. The bill seeks to provide a stronger legal framework to safeguard citizens' dignity in the digital age.

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This bill intends to protect the honor of the family, of minors, of disabled people, who are affected simply by being close to us... our legislation has fallen short.