Latin America set for major AI boom by 2023

Businesses in Latin America are embracing artificial intelligence tools at an unprecedented rate, according to research. A report from the MIT Technology Review, created in partnership with Genesys, found that only one in four enterprises in Latin America are not using AI to some extent.

Of the companies that have begun to use AI in their operations, many report benefits when it comes to efficiency and decision-making processes. At the moment, the main area where AI is being deployed is customer service, particularly in innovative chatbots and e-commerce tools.

Yet, a number of barriers remain that are holding back the potential of AI in Latin American firms. While there is a solid foundation of startups in the region, the often prohibitively high cost of technology and difficulties in hiring skilled staff is limiting growth. Bypassing the politically volatile environment is not an easy task but national governments would greatly benefit from establishing AI plans.

“A second challenge is the region’s limited voice and participation in the development of global AI governance and ethics frameworks; experts are concerned that the dominance of other blocs, especially the EU, could result in frameworks that are harder for Latin American companies to adhere to,” the report goes on to explain.

Another report from analyst firm IDC also found strong growth in the region, despite challenges around skill shortages. The IDC reports states that by utilising AI, companies can benefit from improved IT processing capacities and can gain more resilience against unforeseen market changes.

“Businesses are at an important transformation moment to change how their employees work, increase their collaboration with technological tools improving their functions, and build a data-driven culture for sustainable competitive advantage,” says Enrique Phun, Senior Software and Cloud Analyst at IDC Latin America.