The Cayman Islands could have a legislative framework to regulate artificial intelligence by mid 2027, according to comments made in parliament by Premier André Ebanks.
The implementation timeline, however, will depend on recommendations from the government’s digital taskforce and hinge on yet-unanswered questions affecting data protection, healthcare and accountability.
“AI is developing at a phenomenal pace,” Ebanks told members of parliament on Friday, 6 March, in response to questioning from Bodden Town East MP Dwayne Seymour.
“We must, therefore, act in a way that both safeguards the health, safety and fundamental rights of Caymanians, and enables responsible innovation that improves public services and strengthens our economy.”
The government launched the National Digital Transformation Strategy Taskforce in October to guide regulatory decisions regarding AI and other digital advancements through insight from industry experts.
The taskforce, falling under the premier’s office and the Ministry of Social Development and Innovation, is expected to submit its AI policy recommendations by the end of May.
“In the meantime, we are not standing still,” Ebanks said.
“A great deal of effective AI governance can and is being put in place immediately through policy standards and regulatory guidance under existing legislation and regulations.
“As of this month, March 2026, the Cayman Islands civil service has formally developed its first AI policy version 1.0.”
The premier said this policy is in the final stages of signoff at the Office of the Deputy Governor.
The aim will be to implement “mandatory governance, risk management, transparency, accountability and oversight requirements” across the civil service.
Ebanks added that efforts are also being made to investigate the use of AI in education and healthcare.
Policies already guiding AI in government, he said, include the Data Protection Act (2021 Revision), the Freedom of Information Act (2021 Revision), and the Procurement Act (2023 Revision).
The technology is also subject to the government’s existing risk-management framework, Ebanks said.
Future policy updates would seek to further standardise and regulate uses of the rapidly advancing technology.
“Under the AI policy framework, AI systems cannot be procured, piloted or deployed without coordinated review for cyber security, legal compliance, data protection, risk assessment and architectural alignment,” Ebanks said.
“The policy expressly prohibits unauthorised deployment, the misuse of sensitive data, unlawful or harmful use of AI, and the use of high-risk applications without proper approvals.”
The premier emphasised the importance of the government working with opposition leaders to address the many areas of need regarding AI implementation.
“We must determine how we will classify and manage AI systems by risk type,” he said.
“How we will ensure accountability and audit ability. How we will strengthen privacy, cyber resilience and data governance. And how regulators, including in financial services, will be coordinated so standards are clear and enforceable.
“That work is at an early stage and we will need careful design to be effective in practice.”
