Of all the technological offerings, artificial intelligence is positioned as a tool that contributes to the public and private world, driving economic development. The advantages are clear, from improving efficiency to optimizing resources. But what is needed for it to play a crucial role in boosting the productivity of some APEC member economies?
Interacting with chatbots to resolve queries, using autonomous vehicles with artificial intelligence (AI) and observing predictions in mining through mathematical models have become common. These are some of the applications of AI that are already revealing how economies can be diversified and productivity can be increased in key sectors, such as agriculture, mining and financial services.
AI has become the most popular technological tool and is gaining greater adoption among companies and governments as an enabler of growth.
Looking ahead, says Daniel Scarafia, vice president for Latin America and the Caribbean at Hitachi Vantara, a company that offers Internet of Things solutions , “AI applications will drive economic development in virtually all key sectors of economies. Their impact is visible in improved efficiency, cost reduction, generation of new business opportunities and optimization of resources.”
Thus, biotechnology, information technology (IT) and AI are emerging as substantial growth factors, with the latter playing a relevant role in two areas: optimization and prediction. Along these lines, Miguel Muñoz, professor of International Trade at the Chilean Universidad Tecnológica Metropolitana (UTEM), explains that AI "can help manage the use of resources in the sector more efficiently, as well as manufacturing processes, reducing operating costs. From the point of view of prediction, it can anticipate the yields of agricultural production; support timely maintenance processes, in the field of manufacturing production; and, in the financial sector, help in anticipating risks."
AI is currently being used to close development gaps with advanced countries through its implementation in public institutions and companies, allowing their services to be more efficient and effective, improving processes and driving innovation and organizational growth.
“Technology, and AI in particular, has enormous potential to influence a country’s economic growth and development. This influence can manifest itself in several key aspects, from productivity and innovation to social inclusion and government efficiency,” says Gustavo Arijón, Director of Artificial Intelligence and Analytics at PwC Chile.
We can already see that Chile, Brazil and Uruguay are leading in terms of AI maturity in Latin America, followed by Argentina, Colombia and Mexico. This is according to the Latin American Artificial Intelligence Index , which examines the state of AI in countries, grouping them according to the degree of maturity achieved in Enabling Factors; Research, Development and Adoption; and Governance , categorizing them into pioneers, adopters and explorers .
The index suggests that the top three countries in the index “have an enabling environment that fosters research, development and adoption of technologies. Their rankings indicate that they are well positioned to lead the region in terms of AI innovation and application.” In the case of the three that follow, “although they have limitations in infrastructure or supporting policies, there is significant momentum in the generation of knowledge around AI and its adoption.”
And although technology does not yet determine the economic development of a country, it is a tool that can push it forward. This is so, “as long as it is properly combined with the institutions established by different societies, and which are relevant to clearly discern the path it will follow and whether its preponderance will be greater or lesser in economic development,” says Muñoz.
For this reason, an environment is required where there is technological infrastructure, innovation capacity, education and specialized talent, investment in research and development (R&D) and scientific productivity, an environment of regulatory framework and laws that promote innovation, public policies that are sustainable over time and collaboration between the public and private sectors.
For example, he explains Arijón, from PwC, said: “Chile, with its development of data centers , has a relevant regional advantage that is enhanced by the capacity of its professionals. It is essential that the country has a regulatory framework that promotes the ethical and responsible use of AI, that fosters and drives adoption. Countries that have more restrictive regulations are the ones that are losing the race.”
In the case of companies and startups , where AI is increasingly being applied in processes to improve productivity and scale very aggressively, “this has allowed them to be more efficient and predictive,” says Sergio Della Maggiora, CEO and co-founder of Teamcore , a company that provides artificial intelligence and machine learning solutions for the retail sector.
Felipe Pastenes, CEO of Fintech UPAGO in Mexico , confirms that, from the point of view of productivity and automation, “AI creates the opportunity for small businesses to compete on equal terms with large companies without having to spend a lot of money. At the end of the day, “we are using a tool that will be controlled by the big tech companies, and the rest will use it, democratising its use and achieving better results.”
Challenges ahead
In this context, how processes adapt to these new tools is key, which brings great challenges, especially for certain sectors, such as manufacturing and production, and administrative and office services.
“Artificial intelligence, according to ILO data and the same data handled at the academic level, is generating a decrease in the requirements in some areas, of qualified labor, which could be replaced. Therefore, this substitution, together with automation and new processes versus qualified labor, generates a tension, which must be managed both by public administrations, which regulate, supervise and control the markets, and by the market itself,” says Gerardo Vergara, director of the Public Policy Study Program at UTEM.
In any case, says Arijon, “those professionals or companies that resist, rather than adopt, AI should feel more threatened.” And for this reason, both the PwC Chile specialist and the UTEM academic, Miguel Muñoz, agree that measures can be implemented to mitigate or alleviate unemployment by training workers in advanced technologies.
“Training from the company, from the State and from academia will allow us to better face the challenges that lie ahead and will promote job placement,” says Airjón. Muñoz adds that “incentives can be established for the ongoing training and updating of workers, as well as stimulating training in new work areas, related to those industries that can benefit from the push of AI.”
So beyond the tension in the labour market, disruptive technologies bring with them concerns about privacy, equity and the risk of creating greater inequality. “For technology to be a positive factor in development, countries need strong regulatory frameworks that guarantee its ethical and responsible use, as well as inclusive policies so that the benefits of AI reach everyone equally,” says Arijón.
For AI to continue to play a crucial role in boosting productivity, automating processes and operational efficiency, it is essential to foster an enabling regulatory environment, train workers and promote collaboration between the public and private sectors, ensuring that economic progress goes hand in hand with inclusive and equitable growth.
