Artificial intelligence technology is accelerating in Latin America

Translated from - zdnet

The adoption of artificial intelligence (AI) is growing rapidly in Latin America, with businesses of all sizes deploying the technology to solve critical problems despite challenges facing the region’s ecosystem, a new report shows.

MIT Technology Review, in partnership with Genesys, conducted a study on AI adoption trends, the current state of data sharing, and the future of Latin America, saying that “there are many opportunities if the region implements developments quickly.”

The study said that Latin American companies are using AI to solve key regional issues, including food security, smart cities, natural resources and unemployment, and the complexity of AI projects is almost the same as in other regions. About 80% of large companies in the region reported that their projects are underway, and early benefits include improved operational efficiency and management decision-making capabilities. In comparison, the proportions in North America and Asia Pacific were 87% and 95%, respectively.

AI initiatives are expected to accelerate through 2022, the researchers predict. Nearly two-thirds of respondents in Latin countries said they expect to use AI in 21%-40% of their processes within the next three years, with the fastest growth areas being logistics and supply chain management, and sales and marketing.

The report noted that the adoption of AI is accelerating across all industries in Latin America, with the majority of this being used in customer service, which was mentioned by 55% of respondents. Banks and airlines in the region have been at the forefront, using chatbots and virtual assistants to improve response times and reduce administrative burdens. The report also noted that a number of startups focusing on AI customer service have emerged in the region.

When it comes to the use of AI in other business areas outside of customer service, the study notes that the use of data-driven technologies is still in its infancy, but that will change. While only 4% of businesses in Latin America use AI in human resources management, by 2022, nearly one in five businesses in the region will use AI in their people management processes.

However, Latin America faces many challenges in promoting the adoption of AI, such as difficulty in adapting business processes to take advantage of AI insights and the quality or availability of data. Another huge barrier is skills, coupled with continued brain drain, limited adoption of AI and advanced technologies by universities, and a disconnect between academia and industry.

“In Latin America, if you’re a talent, you go somewhere else,” said Omar Costilla-Reyes, an artificial intelligence researcher at MIT.

The study notes that Latin America’s political fragmentation means the region cannot compete with Europe, China or the United States in AI, due to a lack of resource allocation and regulatory coherence. However, smart national policies do bring benefits, and many Latin American governments have or are developing AI plans.

The report cites the example of Brazil, which has launched a national IoT plan and pledged to build a network of AI labs in strategic areas including cybersecurity and defense, as well as government digitization projects, which are currently underway.

But the authors also note that Latin America’s AI ecosystem would benefit from greater policy continuity and regional cooperation. “Many countries in the region have developed or are in the process of developing national AI plans, but political unrest is interrupting or limiting policy continuity.”

The barriers to AI adoption currently facing the region also prevent Latin American countries from speaking with a unified voice on ethical and regulatory issues surrounding the technology: “Experts worry that the dominance of other blocs, especially the EU, could make it more difficult for Latin American companies to comply with some frameworks.”