Artificial Intelligence Could Boost Latin America's Economy by 5.1 Percent
According to a continental development bank research, artificial intelligence could grow the regional economy, but wages might drop depending on workers' conditions.
According to a new study by the Inter-American Development Bank, the adoption of artificial intelligence could increase the economic output of Latin America and the Caribbean by 5.1 percent over a decade; however, wages could decline if workers fail to transition.
Ten-Year Economic Impact Forecast
The Inter-American Development Bank's 2026 flagship report, expected to be published in November, has been prepared.
The research reveals that artificial intelligence integration could raise the region's economic output by 5.1 percent over a ten-year period.
Limited Adoption Scenario
A different picture emerges in the event of limited adoption of artificial intelligence and small productivity gains achieved.
In this scenario, it is estimated that growth in the regional economy could remain at only around 0.3 percent.
Wages and Labor Transition
If workers are able to transition to new jobs in growing sectors, wages are projected to increase between 2.3 percent and 5.3 percent.
However, it is emphasized that if the workforce fails to adapt to this change, wages could drop by 13.5 percent to 20.9 percent.
Regional Leaders and Technology Summit
Bank President Ilan Goldfajn discussed artificial intelligence and critical minerals with regional leaders.
The closed-door meeting brought together the presidents of Chile and Uruguay and executives from tech giants Alphabet, Meta, and Anthropic.
Critical Minerals and Supply Chain
President Goldfajn called for increased financing and long-term purchase contracts to support the critical minerals supply chain.
It was pointed out that minerals produced with respect for working conditions and the environment must be distinguished from others.