LATAM’s Enterprise AI Surge and the Nearshoring Advantage

OpenAI reported a 161% year-over-year increase in business customers in Brazil, identifying it as one of the fastest-growing generative AI enterprise markets globally ¹

Infobae’s "ScribNews" platform, launched July 2025, now powers 470+ journalists in Argentina and Mexico with over 50unique AI tools for newsroom content management ²

Companies like Morada.ai (property/credit automation) and Kamino (finance operations) announce multi-million USD funding rounds to scale AI across property, banking, and financial services ³

39% of all new business ventures across Latin America are now powered by AI or data, especially in technology, media, and advanced industries; 43% of integrators use AI for workflow efficiency and product development ⁴

Raises productivity (estimated 20–30% improvements in digital/service sectors).

Accelerates digital transformation and new venture creation.

Leads to shifting workforce needs: 30–40% of regional white-collar jobs are exposed to automation, with implications for labor, retraining, and union-led responses (as seen in Brazil)

Moving swiftly from pilot to commercial adoption, especially in Brazil, Argentina, and Mexico. Automated journalism tools, fintechs, and real estate platforms are already at production scale.

Generative AI could drive double-digit productivity gains region-wide over three years, but may also replace or transform millions of office and knowledge roles.

In 2024, Latin America’s AI market stood at $4.71B, with rapid projected CAGR through 2033 ⁵

Multi-billion data center investments are being deployed across the region to meet demand for AI hosting and lower latency ⁶

Mexico's state of Querétaro is now home to 67% of national data center capacity (totaling 587 MW), with hyperscaler expansion continuing.

OpenAI announced $25B planned for the region; TikTok invested $37.7B in Brazil in support of AI-driven infrastructure ⁷

SMEs gain rapid access to managed AI tools and cloud resources, accelerating adoption beyond top-tier enterprises ⁸

Democratizes AI adoption, enables SaaS and vertical AI startups to serve wider client bases, and supports regional tech exports and professional services.

Provides foundation for industrial AI use in mining, manufacturing, retail, education, and cleantech.

Fast growth, with hyperscale providers in advanced build-out stages; region is transitioning from laggard to early majority for cloud/AI platforms.

Continued infrastructure investments could double or triple the region’s addressable AI and SaaS market in 2–4 years, contingent on sustained capex and favorable regulatory frameworks.

Kamino (Brazil) raised $10M to expand AI-driven CFO analytics, handling $2.7B+ transaction volume and 2,000+ customers ⁹

Morada.ai (Brazil) raised $3.1M for generative AI-powered property finance -aiding mortgage approval automation for 200 developers and 2M+ end-users

Avedian (Argentina) raised $2.2M to deploy AI hospital optimization technology across five countries, with reported improvements in bed availability (+30%) and revenue (+40%)

Mastercard Agent Pay, launched in December 2025, uses AI to automate payments and fraud prevention for millions of transactions and partners such as Davivienda and Bemobi ¹⁰

iFood’s acquisition of Advolve signals the scaling of AI-powered advertising and retail media in LatAm, with a market expected to reach $5B by 2030 ¹¹

Infobae's AI-powered newsroom exemplifies media sector transformation ¹²

Drastically reduces operational costs and broadens access to finance and healthcare.

Embeds advanced analytics, predictive care, and fraud protection into high-volume industries.

Supports high profitability rates for AI ventures: 76% of corporate-backed ventures in LATAM reach profitability within two years

Scaling fast in Brazil, Argentina, and Mexico; active in roll-out or pilot in other countries.

AI-powered financial and healthcare solutions could halve operating costs and expand formal sector participation to tens of millions of underbanked citizens by 2028, but could also entrench exclusion if algorithmic bias is not proactively addressed.

AI legislation tracker documenting 193 bills with only a minority enacted; most in debate or committee stages ¹³

Most policies focus on prohibitions and risk, mirroring the EU’s classification approach.

UNESCO published Ecuador’s AI Readiness Assessment Report on November 19, 2025, marking the principal recent regional policy development ¹⁴

External indexes highlight insufficient regional AI investment relative to GDP and urge more innovation-positive frameworks

Creates significant compliance burdens and delays, especially for SMEs and startups, potentially dampening innovation by more than 20% if restrictive proposals pass.

Wide divergence in region: Brazil advances potential AI governance frameworks, but no major binding legislation enacted region-wide during the review period.

Policy discussion phase overall; Ecuador’s readiness strategy illustrates capacity building, not hard regulation. Actual law adoption is limited and uneven.

If most restrictive bills are enacted unamended, up to 35% of LATAM AI startups could see materially higher compliance costs and reduced innovation rates by 2027.

Brazil, Mexico, and Colombia are top destinations for AI investment and startup growth

Private AI investments in LATAM reached $8B (4% of global $190B market); but formal talent deficits and "brain drain" remain risks

Companies in Central America report productivity gains from AI adoption, such as 200 hours saved quarterly by deploying AI bots; 71% of CEOs prioritize AI upskilling ¹⁷

Can make LATAM a net exporter of AI-enabled professional services.

Strengthens regional innovation ecosystems, attracts FDI, and powers B2B SaaS export businesses.

Expanding; major countries are benefiting now, though the race for talent is intensifying globally.

If upskilling and retention are not accelerated, up to 25% of top AI talent could migrate offshore, eroding the regional ecosystem and dampening mid- to long-term growth.