From emerging player to contender: How Latin America can compete in the global AI race

2026-04-06 · Source: Thomson Reuters Institute · Field: Business & Management — Corporate Strategy & Leadership, Entrepreneurship & Start-ups, Capital Markets & Investment Management · Depth: Fundamental Awareness, short

Summary

Latin American companies are increasingly competing in the global AI race by leveraging local strengths, public incentives, and real-world impact. While the region accounts for only 1.12% of worldwide AI spending in 2025 despite contributing 6.6% to global GDP, countries like Mexico and Brazil lead in AI projects and funding. Key strategies for success include forming strategic alliances with industry and academia, focusing on local problems with global relevance (e.g., fintech, agrotech), and demonstrating clear return on investment (ROI). Companies like Kilimo and NotCo exemplify these approaches, attracting significant investment. Additionally, leveraging government incentives and diversifying financing through local and foreign capital are crucial for growth and attracting further investment.

Key takeaway

For entrepreneurs in Latin America seeking AI investment, you should prioritize developing solutions for local challenges with clear global scalability. Focus on building strategic alliances with both academic institutions and established companies, and rigorously quantify the return on investment of your AI projects. Actively seek out government incentives and diversify your funding sources to enhance your appeal to international investors and accelerate growth.

Key insights

Latin America can accelerate AI growth by combining local strengths, strategic alliances, and demonstrable impact to attract global investment.

Principles

• Strategic collaboration accelerates AI progress.
• Local problem-solving can yield global AI solutions.
• Quantifiable outcomes strengthen investor confidence.

Method

Develop AI solutions addressing regional needs, form alliances with industry and academia, leverage government incentives, and demonstrate clear ROI to attract diversified financing.

In practice

• Partner with universities for talent and credibility.
• Target AI solutions for local sectors like agrotech.
• Quantify AI impact with metrics like cost savings.

Topics

• Latin America AI Investment
• AI Strategic Alliances
• Agrotech Solutions
• Foodtech Innovation
• Government AI Incentives

Best for: Entrepreneur, Investor, Director of AI/ML, Executive

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Editorial summary, takeaway, and curation by AIssential. Original article published by Thomson Reuters Institute.