Generative AI - LATAM

The Generative AI market in the Artificial Intelligence Market of LATAM is experiencing extraordinary growth, fueled by factors like rising demand for digital technologies, growing health consciousness among consumers, and the convenience of online health services. This remarkable growth rate is driven by factors such as increasing adoption of digital technologies, rising health awareness among consumers, and the convenience offered by online health services.

Customer preferences: As the adoption of Generative AI continues to rise in LATAM, there is a growing demand for personalized and culturally relevant content. With cultural nuances and demographics playing a crucial role in consumer preferences, companies are investing in Generative AI to create customized and engaging experiences for their target audience. This trend is also fueled by the need for businesses to stay competitive in a rapidly evolving market, where AI-powered solutions can offer a competitive edge.

Trends in the market: In LATAM, the Generative AI market is experiencing a surge in demand for AI-powered chatbots and virtual assistants. This trend is driven by the need for businesses to improve customer experience and increase efficiency. In addition, there is a growing adoption of AI in industries such as healthcare, finance, and retail. This trajectory is significant as it signifies the increasing reliance on AI technology for business growth. Potential implications for stakeholders include the need for investment in AI technology and the potential for job displacement in certain industries.

Local special circumstances: In LATAM, the Generative AI market is seeing significant growth due to the region's increasing adoption of digital technologies and the rise of startups focused on AI solutions. However, the market is also affected by unique regulatory challenges, such as data privacy laws and intellectual property rights, which can impact the development and adoption of AI technologies. Additionally, cultural differences, such as varying levels of trust in technology, can also influence the pace of market growth and adoption. In Mexico, for example, concerns around job displacement by AI have led to slower adoption compared to other countries in the region.

Underlying macroeconomic factors: The growth of the Generative AI market is also influenced by macroeconomic factors such as technological advancements, government support, and investment in AI infrastructure. Countries with advanced technological capabilities and supportive policies are experiencing faster market growth compared to regions with limited technological resources and regulatory challenges. Additionally, the increasing demand for automation and efficiency in various industries, coupled with the rise in data generation, is driving the demand for Generative AI solutions in the market.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.