It has become commonplace to say the digital landscape of our modern world is changing rapidly. In a new age of evolving threats, adaptive malware, and machine learning, cybersecurity firms are racing to develop powerful artificial intelligence tools that can keep pace with new defenses and offenses. Those firms need a place to operate that gives them a competitive edge. That’s where Puerto Rico comes in.
As a magnet for global tech companies, Puerto Rico offers modern digital infrastructure, competitive tax incentives and a 30,000-plus bilingual workforce with expertise in cybersecurity and related fields – all ready to help your cybersecurity business innovate securely.
Integrating Artificial Intelligence in Cybersecurity
What does AI look like in cybersecurity? Forbes reports that AI “acts as both a shield and a sword” within today’s digital ecosystems. First, there are defensive capabilities. AI systems use machine learning algorithms to improve automated threat detection against phishing attempts, ransomware and zero-day vulnerabilities. User behavior analytics can identify suspicious activity that indicates a potential threat. And predictive intelligence tools leverage deep learning and historical datasets to anticipate new threats, enabling proactive countermeasures and decision-making.
At the same time, bad actors are weaponizing AI for dangerous offensive capabilities. That includes AI-powered malware that can evade intrusion detection; deepfakes producing real-world impact with fraud and misinformation; and cyberattacks that weaken the defenses of security systems through automation.
For security teams looking to stay ahead this constantly shifting threat landscape, Puerto Rico is ideal as a base of operations. The island is at the forefront of embracing emerging technologies and ranks as a top 10 destination for the ICT sectorwith 5G connectivity. Research labs and incubators spur tech innovation.
Legislative Landscape Gives Competitive Edge
Government support adds another layer to the equation, with Puerto Rico recently passing two major pieces of relevant legislature. Passed in January 2024, Act 40-2024 establishes a framework to enhance cybersecurity innovation between the public and private sectors.
It’s a sign of how Puerto Rico is taking AI and cybersecurity seriously – just as local leaders take business and economic growth seriously. Case in point: the Puerto Rico Incentives Code, Act 60, provides tax benefits ranging from 4% fixed income tax rate on eligible salaries to 100% exemption on capital gains tax, all with a standard 15-year tax exemption grant period.
Puerto Rico’s favorable regulatory framework comes with the additional advantage of being part of the United States. That means strong intellectual property protections, financial regulations and legal stability. Furthermore, the island’s strategic position enables companies to access U.S.-based cybersecurity initiatives and government contracts.
Innovations in Puerto Rico
Combine these factors together, and it’s easy to see why Puerto Rico is making a name for itself as a leader in AI and cybersecurity. When cybersecurity firms Invest in Puerto Rico, they enter a collaborative ecosystem that helps them find the right ingredients for success: exceptional local cybersecurity professionals, R&D prowess, robust business networks, prime market access, financial incentives, optimal real estate and more.
Fostering innovation is a top priority – as shown by platforms like Impeller, which facilitates connections between investors and on-island issuers startups in a time of flourishing investment for the island. Opportunities abound with the Puerto Rico Innovation Fund, Parallel18 Ventures, Colmena 66 and many programs provide early-stage funding to tech startups. Local investment firms, such as Astra Partners and Integra Group, actively fund tech companies across sectors, from fintech to AI.In addition, the Puerto Rico Science, Technology & Research Trust offers grants and seed funding for innovation-focused tech projects in emerging fields, while the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs offer federal funding to local tech companies.
These factors convinced San Juan-born Marine veteran Jonathan Soto-Nieves to move back to Puerto Rico to launch his cyber defense startup iTerra Solutions, after initially considering a location in Virginia. With support from Invest Puerto Rico, iTerra quickly spun up its operations on the island.
Today, it’s helping modernize healthcare data systems while benefiting from Puerto Rico’s dynamic business environment. As Soto-Nieves tells it, “I call it an ecosystem because the whole community is working in conjunction with one another. It’samazing. It really is the place to be. There are so many interesting companies on the rise.”
Advancing AI in Cybersecurity and Beyond
iTerra is part of a growing cluster of ICT companies advancing AI cybersecurity solutions in Puerto Rico. Take “Tim,” for example. Designed and launched by Puerto Rican firm Advisers, this virtual risk advisor uses AI algorithms to provide real-time risk assessments of cyber threats for customers. Now the firm is looking to leverage its technology to expand to markets in the U.S. and Europe.
Puerto Rico’s global impact extends into the broader field of AI innovation. Tech giant Microsoft, which has operations in Puerto Rico, recently partnered with local data analysis firm Intelligent Economics to develop an AI assistant and a new data platform. Running on Microsoft’s machine learning models, the bot can quickly find economic data and speed up services for clients.
Red Cat is another AI-powered company in Puerto Rico with an international focus. Based in Humacao, Red Cat provides unmanned aerial vehicle systems to defense customers including the U.S. military. Similarly, Vantor has deep roots in Puerto Rico. The space tech innovator taps into the island’s rich technology ecosystem to develop cutting-edge AI solutions that advance geospatial intelligence capabilities for commercial and government customers.
Government Stake in Top-Class Threat Detection
It’s not just businesses that take AI and cybersecurity seriously. In 2022, the Puerto Rican government announced a $7.6 million cybersecurity program for major artificial intelligence security upgrades across the island. The program implemented a range of protective services, including endpoint detection, event logging and firewalls.
The funding also facilitated the construction of a security operations center at the Puerto Rico Innovation and Technology Service (PRITS), a government agency dedicated to fighting cybercriminals. As part of its public platform, PRITS shows real-time statistics of cyberattacks its systems have held back, so citizens and businesses alike can trust that their sensitive information is secure in the island’s digital network.
At a larger level, initiatives like the Smart Island program, LUMA Energy Smart Grid Project and the Bayamón Smart City Program show how Puerto Rico is innovating across sectors, inviting companies to collaborate in enhancing internetinfrastructure, energy management and smart city projects. Along with these focus areas, the island is investing significantly in workforce development initiatives and digital literacy programs aimed toward the future.
In the 21st century, cybersecurity strategies require a whole new approach to threat intelligence against adversarial attacks. The companies that will succeed are the ones that remain attuned to the latest developments in the field – spanning everything from improved network security solutions and malware detection to data science, reinforcement learning and neural networks.
The full extent of use cases for AI in cybersecurity is vast and yet to be discovered. The choice for where to set up a location, however, is much more straightforward: Puerto Rico has the assets you need to elevate your operations to the next level.
