As global investment in AI accelerates, Latin American companies are sharpening their own capabilities by leveraging local strengths, public incentives, and real-world impact to compete on the world stage
Key takeaways:
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Strategic collaboration is becoming a defining strength for the region — Latin American organizations are realizing that progress in AI accelerates when they combine forces by linking industry expertise, academic talent, and public‑sector support.
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AI initiatives rooted in real local challenges are gaining global relevance — By developing solutions grounded in the region’s own structural needs, whether in infrastructure, finance, agriculture, education, or mobility, many LatAm firms are producing technologies that are both highly impactful and naturally scalable.
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Demonstrating clear outcomes is becoming fundamental — Organizations that show concrete operational improvements, measurable efficiencies, or stronger customer outcomes are strengthening their position with investors and partners.
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In recent years, Latin America has experienced significant growth in investments related to AI, accounting for 1.12% of worldwide AI spending in 2025. This is strikingly low given that the region makes up around 6.6% of global GDP, highlighting the region’s opportunities to scale AI initiatives even further. Although there are notable differences among countries, Mexico and Brazil — the two largest LatAm economies — stand out for their volume of AI projects and funding, followed by other nations such as Chile, Colombia, and Argentina.
By recognizing the region’s strengths — which include cost-effective operations, access to data, clean energy, and public support — the region’s businesses can better position themselves and design strategies to draw in international investors that may be increasingly seeking promising locations for AI development.
Lessons from LatAm’s AI success stories
Latin America has produced remarkable AI success stories that can serve as models to build confidence among investors. These cases — involving companies that attracted substantial investment and achieved growth — demonstrate valuable best practices that range from technological innovation to working with governments and corporations. Some of these best practices include:
Building strategic alliances
The journey of innovation rarely unfolds in isolation. At times, the presence of large, established companies, whether local industry leaders or multinationals, has served as a catalyst for AI projects. The experience of Kilimo, an Argentine startup that specializes in AI-powered agricultural irrigation, proves it. Now, Kilimo is partnering with EdgeConneX, a data center company based in the United States, on a community water management project in Chile.
Academia, too, can be woven into this narrative. Collaborations with research centers or universities offer scientific credibility and connect ventures with emerging talent. In Mexico, AI startups often originate within university settings — such as computer vision projects from the National Autonomous University of Mexico (UNAM), for instance — and maintain agreements that sustain ongoing innovation and technical progress even with modest resources. And academic validations, whether in published papers or conference accolades, tend to resonate with foreign investors. Indeed, the emergence of this ecosystem that features early corporate clients and academic mentors frequently lends a distinctive appeal for those seeking investment.
Focusing on local problems with global impact
Within Latin America, certain issues prove especially relevant in situations in which AI solutions intersect with sectors renowned for regional strengths, such as fintech and financial inclusion, agrotech optimizing agriculture, and foodtech drawing on local ingredients. The experience of Chilean food startup NotCo — in which AI was applied to plant-based food cultivation and subsequently exported — suggests how innovations rooted in local context may generate broader attention.
By addressing needs in urban transport, education, mining and related areas, local LatAm companies can provide access to homegrown data and users, which can further refine technology and open pathways for investors into similar emerging markets. When AI solutions respond to genuine pain points rather than mere novelty, momentum often builds more quickly, and the model finds validation among that evaluate investments.
Showing results and AI ROI early on
Questions linger for many executives regarding the return on investment in AI. Evidence of clear metrics like cost savings, sales growth, or error reduction can prove persuasive, especially when complemented by success stories from local clients.
Recent studies show that companies generate a $3.50 return for every $1 invested in AI; and such figures tend to reassure those considering investment by illustrating tangible improvements. Testimonials or independent validations, such as a university study, can further illuminate achievements.
The act of quantifying impact — whether in efficiency, revenue, or other relevant KPIs — has a way of transforming perceptions from uncertainty toward clarity.
Leveraging government incentives and collaborations
Many Latin American nations have put forth support programs for AI and tech projects, such as non-repayable funds, soft loans, and tax benefits for innovation illustrated in Finep and BNDES credits in Brazil, Conpes in Colombia, Plan México, or the INSERTAR program in Argentina.
Public financing, when present, often acts as a stamp of validation for private investors. For example, this trust extended to Brazilian startups receiving Finep support for AI health projects, which in turn can shift perceptions for foreign ventures capitals. Engagement in government pilots, such as smart city initiatives or solutions for ministries, provides valuable exposure. In such contexts, public-private partnerships and incentives seem to act as quiet levers for growth and legitimacy.
Seeking smart and diversified financing
Financial strategies in Latin America have been shaped by the interplay of local and foreign capital. Local funds often bring insights and patience, while foreign funds may offer larger investments and global scaling experience. Ownership dilution sometimes accompanies the arrival of strategic investors, whose networks can prove invaluable, such as SoftBank’s contributions to Rappi. Programs like 500 Startups, Y Combinator, MassChallenge, and international competitions have ushered LatAm AI startups such as Heru, Rappi, Bitso, and Clip into new rounds of capital following increased exposure.
Efficiency in capital management, which can be demonstrated with lean burn rates and milestone achievement with limited resources, signals an ability to execute within the realities of LatAm, which may enhance the appeal for future investments. The cultivation of relationships and responsible stewardship of capital frequently matters as much as the funds themselves, suggesting that the value of mentorship, contacts, and reputation is often intertwined with deepening financial support.
Unlocking AI Investment
By applying these principles, Latin American companies have achieved a better position to attract AI investments to their projects and help position the region as a viable destination for technology capital. These recent experiences show that when a LatAm company combines innovation, talent, and strategy — while communicating its story well — it can win over global and local investors alike. Each of the best practices noted above is based on real lessons: international alliances (NotCo with US funds), leveraging incentives (Brazilian companies funded by Finep), talent formation (Santander and Microsoft programs), focus on ROI (successful use cases that convince boards), and more.
Latin America has challenges but also unique advantages. Companies that manage to navigate this environment intelligently will increase their chances of securing the financing needed to innovate and grow. By doing so, they will contribute to a virtuous circle in which each new success attracts more investment to the region and opens doors for the next generation of LatAm AI ventures.
You can find more about the challenges and opportunities in the Latin American region here
