Latin America is still a long way from competing with the US and China when it comes to AI.
That does not mean, however, that there are no promising growth signs for AI development in the region. Respective governments on the continent have done a lot to propel AI progress, through policy initiatives, expert councils, and encouraging private investment in AI.
According to the OECD, seven Latin American countries have either developed or are in the process of developing a national AI strategy: Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Uruguay. Their strengths and strategies are varied.
Brazil focuses on upskilling its workforce and investing in AI education. Meanwhile, Colombia’s AI strategy is to introduce regulatory sandboxes for its AI sector, as well as an AI ethics framework.
However, successful rollouts of AI policies and ethical standards are contingent on continuity. For example, President Javier Milei wants to pitch Argentina as a low-regulation tech hub in the region, in the hopes of turning the country into the ‘World’s Fourth AI Hub.’ This is seen as a departure from the previous administration.
In sharp contrast, Mexico has voted for continuity in its administration, with no signs of drastic change to its AI policies.
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By GlobalDataLatin America still has mountains to climb when it comes to AI progress
Latin America is expected to gain 5.4% of GDP—an estimated $500bn—by 2030 through AI, though this is a small gain compared to China (26.1%) and the US (14.5%). According to the UN Development Program in 2024, the reason for the slower uptake in Latin America reflects limited public investment in science, technology, engineering and mathematics (STEM), insufficient AI skills, and an informal economy dominated by small enterprises. However, the forecasted growth in Latin America shows that it is committed to growing its AI capabilities.
Despite the potential, the sustainability of AI investment is uncertain. The region’s economic health is closely tied to commodity exports, making it susceptible to global market shifts. This economic instability may lead to unpredictable ebbs and flows in funding, which could impact the long-term growth of the tech sector and AI development.
Lack of digital infrastructure
A lack of digital infrastructure remains one of the biggest challenges for Latin American countries. According to the United Nations Development Programme, while 74.3 percent of the Latin American population has access to broadband, only about 37 percent of that figure has strong enough connectivity to access all internet utilities (to study, stream, perform transactions and more).
In addition, only five of the region’s largest economies—Brazil, Chile, Colombia, Peru, and Mexico—have commercial 5G capabilities.
Government support is vital
The success stories of AI in Latin America will likely hinge on government support. Governments can help navigate the region through economic uncertainties and maintain the momentum needed for the tech sector to thrive, such as improving digital infrastructure. This proactive approach will be vital for the region to realise its full AI potential.
Latin America’s journey towards AI excellence is fraught with both promise and challenges. While the region has made significant strides in policy development and courting tech talent, economic and political volatility in some countries could dampen progress.
Telecom infrastructure across the region also needs to improve to build both AI talent and the AI systems themselves. However, with strategic government intervention and promotion of AI talent in the private sector, Latin America has the potential to transform its AI aspirations into tangible success.
