The innovative dynamics of the region require a greater push with increased investment and talent creation

Last revision date: 09/02/2024

AI has tremendous power to enhance productive, inclusive, and sustainable development. AI-based solutions, by improving decision-making based on data and automating all kinds of tasks, can increase productivity in various economic sectors and the environmental efficiency of production processes. It is estimated that AI could boost the region's GDP by more than 5% by 2030¹. Therefore, understanding the dynamics of the adoption and development of AI solutions in the region is crucial for technological development and regional competitiveness in an increasingly digitized global context.

To achieve this, based on Crunchbase data, companies that base their business model on artificial intelligence have been identified in order to gain insight into how AI is permeating the productive fabric of countries. Understanding the landscape of artificial intelligence companies in the region can help identify opportunities for economic growth, innovation promotion, and skills development for future employment, to promote a strong and sustainable technological ecosystem in the region and advance productive diversification.

The analysis of artificial intelligence companies in Latin America and the Caribbean reveals a promising yet challenging landscape for the development of this industry. As of September 2023, AI companies accounted for nearly 3% of the total AI companies worldwide. However, there is a significant gap compared to global leaders such as the United States and China, which represent 37% and 8% respectively, or regions like Europe and Asia-Pacific, with a share of 30% and 15%.

AI companies, world regions, september 2023

(In quantity)

Source: our own elaboration based on Crunchbase.

The data shows that although Latin America and the Caribbean represent 2.84% of the world's artificial intelligence companies, there are opportunities for growth and expansion in the region. This reflects both the potential and the need for greater impetus in the development of artificial intelligence in Latin America and the Caribbean. It is crucial to promote investment, innovation, and local talent in this field to drive technological transformation and fully harness the benefits that artificial intelligence can bring to the region.

Analyzing the number of AI companies per country, there is a concentration in the more advanced economies of the region, with clear leadership from Brazil with 154 companies, followed by Argentina, Chile, and Mexico. Through strategic investments, collaborations, and support programs, it is possible to stimulate the growth of AI companies in countries that currently show a more limited presence, thus ensuring a more inclusive and sustainable advancement throughout the region.

AI companies, Latin America and the Caribbean countries, september 2023

(In quantity)

Source: our own elaboration based on Crunchbase.

The number of AI companies founded per year reveals an interesting trend, with a similar pattern between Latin America and the Caribbean and the rest of the world. There is significant and sustained growth from 2010 to 2017, followed by a decline that has continued downward.

AI companies founded by year, world regions, september 2023

(In quantity)

Source: our own elaboration based on Crunchbase.

Asia-Pacific, the United States, and Europe show consistently higher figures in recent years, suggesting greater dynamism in the founding of AI companies. This highlights the need to strengthen and stimulate AI-based innovation, identifying and addressing possible obstacles that may be affecting its dynamism.

The evolution in the number of AI companies founded annually shows a progressive but comparatively modest growth in Latin America and the Caribbean. From 2009 to 2023, the region has steadily increased its cumulative number of AI companies, reaching 279 by 2023. However, compared to other regions such as Asia-Pacific (excluding China) and North America (excluding the United States), Latin America's growth appears more gradual. While those regions show growth curves at higher rates, Latin America's steady rise indicates a slower-developing AI ecosystem. The disparity in growth rates highlights both the growing regional interest in AI entrepreneurship and the need for concerted efforts to accelerate and consolidate this development.

AI companies by number of employees, world regions, september 2023

(In quantity)

Source: our own elaboration based on Crunchbase.

¹"Sizing the prize What’s the real value of AI for your business and how can you capitalise?", PWC. https://www.pwc.com/gx/en/issues/analytics/assets/pwc-ai-analysis-sizing-the-prize-report.pdf