Alexandra Borgeaud
Research expert covering cybersecurity and tech in Latin America
ChatGPT, autonomous cars, generative AI, AI chips: in recent years, few other topics have led to so many headlines and to such heated debates as artificial intelligence (AI). This technology refers to the ability of a computer or machine to mimic the competencies of the human mind, which often learns from previous experiences to understand and respond to language, decisions, and problems. When incorporated into business operations, its benefits are considerable, particularly in the automation of work processes and increases in productivity.
In a global frenzy, Latin America is no exception
The world is experiencing a boom in the AI revolution, and Latin America is no exception. While funding for startups focusing on AI in the region only amounted to three million U.S. dollars in the fourth quarter of 2023, far behind the nearly four billion U.S. dollars raised in the United States, South America ranked third in terms of weekly adoption of AI tools, with a rate of almost 75 percent. According to a recent Latin American artificial intelligence (AI) index ranking looking at enabling factors such as infrastructure, data, talent, research, development, and adoption, as well as governance, Chile was the highest-ranked Latin American country in 2023, with an index score of roughly 73. Brazil and Uruguay followed, with AI index scores of 65.31 and just under 55, respectively.The implementation of AI in Latin American businesses is well on its way
While ranking only fourth in the Latin American AI index, Colombia was the Latin American country presenting the most potential related to AI according to business leaders active on the continent, followed by Mexico and Chile. Regarding AI adoption, a 2023 survey found that nearly 40 percent of respondents among business leaders in Latin America were exploring AI-related solutions for their company, an 18-percent increase compared to a year earlier, while another 30 percent were already producing such solutions. Within companies, IT and sales and business were the departments where AI was most likely to have already been implemented.Many opportunities and challenges ahead
Despite the many benefits of incorporating AI into business operations, the lack of specialized AI talent remains the most glaring issue in Latin America. Other key challenges included implementation and maintenance costs, as well as resistance to change. With the advancements in technology, coupled with the immense effect it may have on the global economy, it is to be expected that AI will be in continuous competitive development across all regions of the world. Any company looking to leverage an advantage over its competitors would do well to engage early so as not to be left behind.
