Artificial Intelligence - South America

The Artificial Intelligence market in South America is witnessing rapid growth, driven by factors such as increasing adoption of digital technologies, growing awareness about the potential of AI, and the convenience offered by online services. The market is expected to continue its elevated growth rate due to the advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI, which are constantly improving the capabilities of AI systems. Additionally, the rising investment in AI research and development in the region is also contributing to the market's growth.

Customer preferences: With the growing adoption of digital technologies and the increasing availability of internet access, consumers in South America are increasingly turning to Artificial Intelligence (AI) solutions for various needs. This trend is driven by the desire for convenience and efficiency, as well as the need for personalized and data-driven decision making. As a result, there has been a surge in demand for AI-powered virtual assistants, smart home devices, and personalized shopping experiences. Additionally, the use of AI in healthcare, particularly in remote monitoring and disease management, is gaining traction as consumers seek more accessible and convenient healthcare solutions.

Trends in the market: In South America, there is a growing trend towards the incorporation of Artificial Intelligence (AI) in various industries, including healthcare, finance, and retail. This trajectory is driven by the increasing availability of data and advancements in machine learning algorithms. For instance, in Brazil, AI is being used in the healthcare sector to improve patient outcomes and reduce costs. In Argentina, financial institutions are leveraging AI for fraud detection and risk management. This trend is significant for industry stakeholders as it presents opportunities for efficiency, cost savings, and better decision-making. However, it also raises concerns about job displacement and the ethical use of AI. As the adoption of AI continues to grow, it is crucial for stakeholders to stay informed and adapt to the changing landscape.

Local special circumstances: In South America, the Artificial Intelligence market is witnessing significant growth due to the region's increasing focus on digital transformation and technological advancements. The market is also influenced by unique factors such as the growing adoption of AI in agriculture to improve production efficiencies and the government's initiatives to promote the use of AI in various industries. Additionally, the region's cultural diversity and regulatory landscape play a crucial role in shaping the AI market, with each country having its own set of regulations and policies.

Underlying macroeconomic factors: The Artificial Intelligence market in South America is highly impacted by macroeconomic factors such as technological advancements, government support, and investment in infrastructure. Countries with favorable regulatory environments and significant investment in AI technologies are experiencing rapid market growth, while those facing regulatory challenges and limited funding are seeing slower growth. Furthermore, the increasing adoption of AI in various industries, such as healthcare, finance, and manufacturing, is driving the demand for advanced AI solutions in the region. Additionally, the growing population and increasing demand for efficient and cost-effective solutions are further propelling the growth of the AI market in South America.

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.