AI's Role in Latin America's Economic Transformation

Published Date : 05/06/2025 

Latin America is embracing artificial intelligence (AI) with optimism and strategic planning, poised to transform industries and enhance business operations. This article explores the region's journey and the potential benefits of AI integration. 

By: Adriana Aroulho, President, SAP Latin America & Caribbean

Artificial Intelligence (AI) has already started transforming industries and redefining how businesses operate. I am excited to share insights from a recent study conducted by SAP in Latin America, highlighting how the region is embracing AI and getting ready to integrate it into various sectors.

The survey included 1,200 decision-makers from large companies and SMEs in Argentina, Brazil, Chile, Colombia, and Mexico. A significant 43% of these leaders said they view AI positively, with another 38% recognizing its vast potential. This optimistic outlook is reflected in the substantial 63% who expect AI to significantly impact their industries. This sentiment is particularly strong in Mexico and Colombia, where 72% and 69% of companies respectively anticipate major industry shifts due to AI advancements.

What is driving this positive outlook? The desire of Latin American companies to enhance customer experiences (59%) and boost productivity and efficiency (54%). AI is not just seen as a tool for automation but as a collaborator that complements human capabilities, aiding in decision-making and reducing human error. This is a crucial perspective shift from the job displacement narrative to one where AI empowers and augments human efforts.

Additionally, implementation rates are promising, with customer service (64%) and marketing (43%) leading the way in AI integration, undoubtedly reshaping how companies interact with their clients and manage consumer data. This trend is set to accelerate, with 55% of decision-makers planning to increase their AI investments by 2025.

Latin American companies are proactively preparing their workforce for this technological shift. Half of the companies surveyed are investing in AI training, and this number is expected to rise. This emphasis on education ensures that the workforce evolves alongside technological advancements, closing a skills gap that could otherwise hinder AI integration.

Despite the enthusiasm, challenges remain. A significant 34% of companies cited a lack of clarity in how to integrate AI, while 26% pointed to a shortage of qualified professionals as an obstacle. These hurdles underscore the need for clear guidance and more robust educational frameworks to fully leverage AI’s potential.

Sustainability is also emerging as a key motivator, with 49% of companies implementing AI solutions to advance their sustainability goals, aligning with the global push for more eco-friendly business practices.

Meanwhile, among Small and Medium Enterprises (SMEs) — the very backbone of Latin America’s economy, comprising over 90% of all businesses according to the World Bank, and generating around 60% of formal jobs as stated by the OECD — enthusiasm for AI varies significantly. While 43% of businesses already report tangible benefits from AI implementation, with an even larger 47% anticipating a major impact by 2025, perspectives differ based on company size. While large enterprises often express strong optimism, particularly regarding AI’s potential for process automation and task prioritization, and medium-sized businesses show considerable confidence, smaller companies have mixed feelings, with some believing it’s too early to fully grasp AI’s implications. This nuanced landscape highlights the distinct opportunities and challenges SMEs face as they navigate the integration of AI.

Latin America stands at a critical juncture. The region is not just following global trends; it is actively shaping its technological future. The coming years will be crucial as businesses expand their AI strategies and increase investments. With the right policies, continued investment in human capital, and a clear focus on sustainable practices, Latin America can indeed become a strong player in the AI revolution, transforming its economic landscape and delivering substantial benefits to its societies. Adopting AI could mean greater efficiency, better customer experiences, and increased competitiveness in the global market for SMEs.

Let’s seize this unprecedented opportunity to transform Latin America into a leading hub for artificial intelligence innovation, driving prosperity and progress across the region. 

Frequently Asked Questions (FAQS): 

Q: What is the primary reason Latin American companies are optimistic about AI?

A: The primary reason for optimism is the potential to enhance customer experiences (59%) and boost productivity and efficiency (54%).

Q: Which sectors are leading in AI integration in Latin America?

A: Customer service (64%) and marketing (43%) are leading in AI integration in Latin America.

Q: What challenges do companies face in integrating AI?

A: The main challenges include a lack of clarity in how to integrate AI (34%) and a shortage of qualified professionals (26%).

Q: How are Latin American companies preparing their workforce for AI?

A: Half of the companies surveyed are investing in AI training, and this number is expected to rise.

Q: What role does sustainability play in AI adoption in Latin America?

A: Sustainability is a key motivator, with 49% of companies implementing AI solutions to advance their sustainability goals. 

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