Artificial Intelligence (AI) is a transformative force that has taken the business world by storm, and its exponential growth shows no signs of slowing down. With the advent of open-source Large Language Models (LLMs) like ChatGPT in late 2022, the pace of AI adoption has skyrocketed. According to Statista, AI is set to achieve a remarkable compound annual growth rate (CAGR) of 15.49% from 2023 to 2030, culminating in a staggering market volume of $263.2 billion by 2030.

While the United States, a global technology powerhouse, is expected to drive much of this expansion with a projected value of $87.18 billion by year-end, it is essential to recognize that the rapid evolution of AI, coupled with a post-pandemic labor shortage, has presented a unique challenge for companies seeking to fill emerging technology roles. This dilemma has led many U.S. and Canadian firms to look toward Latin America as a solution to swiftly upscale their operations and meet client demands.

Why Latin America Stands Out

Geopolitical Shift: In a changing global landscape, companies are gradually moving away from dependency on Asian outsourcing, particularly China. Latin America is emerging as an attractive alternative due to its cultural similarities with North America, including English proficiency and shared time zones—critical advantages compared to other offshore markets such as the Philippines.

Abundant Talent Pool: Latin America offers a sizable, well-prepared workforce, especially in the IT sector. This readily available talent pool allows for rapid service expansion to accommodate a company's growth and adaptability needs.

Low Attrition Rates: Attrition rates for skilled professionals in Latin America, like Mexico, are significantly lower (15-20% less) than those in India, resulting in greater stability in project timelines and staffing continuity.

Brazil's Emergence: Brazil, a South American powerhouse, is making significant strides in the Artificial Intelligence market. With a strong focus on AI solutions for agriculture and healthcare, Brazil is becoming a major player in the field. The country's commitment to AI education, as evidenced by the Latin American Artificial Intelligence Index, which integrates AI elements into the national school curriculum, further underscores its potential.

Educational Investment: Latin American countries, including Mexico and Colombia, are investing in STEM education. Enrollments in fields like Information and Communication Technologies have surged, reflecting the region's rapid response to shifting labor needs and demographics. For example, one report produced with help from Google on Mexico, a location where NEORIS has a major presence, indicated that from 2016-2018, enrollment in in the field of Information and Communication Technologies increased by more than 1000%. Simultaneously, enrollment in the field of Natural Sciences, Mathematics, and Statistics increased by 83.6%.

Pro-Technology Policies: Countries like Colombia are embracing pro-technology governments and implementing AI policy initiatives. Colombia's AI strategy, the region's first AI ethics framework, and an AI task force demonstrate a commitment to AI growth.

Youthful Populations: Latin America boasts young populations, adding to the region's vibrancy and adaptability.

In a world increasingly driven by Artificial Intelligence, Latin America has emerged as the premier nearshore IT hub and an untapped investment opportunity for executives seeking to ride the AI wave. With its abundance of talent, advances in STEM education and low attrition rates, Latin America is poised to help businesses rapidly expand and meet the challenges of the AI-driven future.

At NEORIS, we have been at the forefront of facilitating American and Canadian companies' nearshoring efforts in Latin America, by assisting and guiding them on their own AI journey, providing consulting and technical implementation of generative AI, as well as support, integration, and technology maintenance. We can attest that it is a win-win solution for all stakeholders.

Don't miss out on the opportunity and join NEORIS in the AI revolution!