"Embracing a culture of innovation and adaptability is crucial for Latin American companies to fully leverage AI’s potential and drive meaningful change."
In the evolving landscape of Latin American business, understanding and harnessing the power of artificial intelligence is more pressing than ever. As Latin American corporations integrate AI, five key themes emerge for company success:
1. Unlocking Business Opportunity
Latin American companies are keen to educate themselves on AI, transitioning from predictive models to generative AI (GenAI). While still in the early stages of fully understanding this technology, companies recognize AI’s potential to transform operations and decision-making. For instance, Walmart in Latin America has utilized predictive AI to optimize daily purchasing decisions based on daily shopper data. In contrast, Kraft-Heinz in the US employs AI for agile supply chain management, optimizing raw material flow and customer order fulfillment to maximize business objectives. These examples highlight AI’s power in enhancing operational efficiency and strategic decision-making, offering valuable lessons for Latin American companies. Nevertheless, few have identified key areas of application beyond efficiency gains, and little has been tried in areas that spur growth.
2. Ensuring Data Integrity
AI’s promise lies in solving complex problems, yet few Latin American companies have scaled AI initiatives significantly. AI’s effectiveness depends heavily on data availability and quality, often hindered by ongoing platform migrations. As Latin America companies transition their Enterprise Resource Planning (ERP) systems, integrating AI becomes challenging. Retailers tend to move faster in this space compared to consumer goods companies. The diversity of technology landscapes further complicates AI adoption, underscoring the need for streamlined, less customized platforms.
3. Leveraging Appropriate Technology & Service
Large Latin American companies have straightforward access to the most advanced solutions providers in all technological areas. It is more challenging to have their commitment to set up a regional service platform that performs as well in Latin America as it does in the US when they are startups or are just scaling up. The decision-making process about what technology to adopt will always be filtered by the capabilities of solution providers to serve the company.
4. Cultivating Cultural Readiness
Corporate culture significantly impacts AI adoption in Latin America. Many organizations are culturally unprepared, lacking the necessary agility and cross-functional collaboration. Successful AI implementation requires a workforce capable of making decisions across multiple functions, fostering a multifaceted approach to problem-solving. This cultural shift is crucial for Latin American companies to leverage AI’s potential fully.
5. Addressing Impact Concerns
The societal impact of AI raises concerns, particularly around Environmental, Social, and Governance (ESG) criteria. Data privacy, job displacement, and workforce anxiety are critical issues. Mitigating job loss and ensuring employees feel secure are paramount as AI reshapes traditional roles. Latin American companies must navigate these challenges thoughtfully, ensuring technology enhances human capabilities rather than replacing them.
As Latin American corporates explore AI’s potential, thoughtfully navigating these opportunities and challenges is essential to drive regional growth and enhance human capabilities.
