When it comes to artificial intelligence (AI), Latin America can tread on one of two roads: follow global AI trends at a distance, or leverage its unique advantages to set an entirely new standard for how AI is powered and governed.

High on that list of advantages are abundant renewable energy sources, extraordinary biodiversity and deep cultural and linguistic diversity.

These factors make the region ripe for adopting and reinventing AI to serve local and global challenges – from sustainable agriculture to industrial modernization.

Multiple indicators point to a new wave of innovation in areas such as agritech, industrial AI and health research, spurred by rising venture capital inflows, which exceeded $15 billion in 2021, according to the Latin American Venture Capital Association.

For Latin America to realize this promise, it must overcome inequities in compute infrastructure, bridge the roughly 1.2 million tech-professional gap and channel local resources into impactful solutions. However, there are opportunities ahead.

Among Latin American countries, Brazil has emerged as a global reference for renewable energy, with about 80% to 85% of its electricity coming from renewable sources in a typical season – already far surpassing the worldwide average of around 28% for electricity generation.

In 2023, the Chamber of Electric Energy Comercialization measured a remarkable 93.1% renewable share in electricity production during particularly favourable conditions. These numbers do not even account for broader energy use (including transport), where Brazil still maintains a 45-48% renewable share thanks to the use of ethanol, well above the global average of around 14%.

This is especially valuable given that global tech firms are seeking clean energy sources for data centres near stable, low-carbon energy grids to reduce their environmental footprint. Google, for example, faces a 48% rise in greenhouse gas emissions over five years, driven by expanding data centre infrastructure. Latin America’s clean energy profile can draw these investments.

In tandem, the region’s exploration of biomethane as an alternative fuel adds further opportunities. For example, the State of Goiás in Brazil is introducing 500 biomethane-fueled buses, sending a strong demand signal to the market and stimulating further investment in biomethane.

Beyond biomethane, Brazil’s new hydrogen law (Bill 2.038) and the National Hydrogen Programme (PNH2) are also accelerating the shift toward promoting the use of green hydrogen, extending Brazil’s role as a key global supplier of sustainable energy.

Latin America’s renewables provide a foundation but it is how these resources are applied – especially in agriculture and manufacturing – that can genuinely transform the region’s socio-economic landscape.

Agriculture remains a primary economic driver for many Latin American nations, with Brazil alone ranking among the world’s top producers of soybeans, beef and coffee. Now, a new generation of agro-startups is tapping AI to boost yields and minimize environmental damage.

From sensor-based soil analysis to predictive weather modelling, these ventures benefit smallholder farmers and large-scale operations, aligning closely with global demands for more climate-smart food systems.

Beyond the farm, industrial federations are exploring how to integrate AI into logistics, predictive maintenance and process automation. AI-driven innovations can trim inefficiencies in complex supply chains, reduce traffic congestion in sprawling megacities and enhance manufacturing competitiveness.

Meanwhile, biotech research efforts, such as the drug research accelerator in Honduras’s Special Economic Area of Prospera, demonstrate how localized solutions can evolve into blueprints for the broader region.

By embracing innovation across these varied domains, Latin America can avoid the one-size-fits-all trap often seen in more developed markets and instead craft interventions that resonate with local realities.

Despite its potential, the region still has uneven access to advanced computing infrastructure and expertise. This disparity can lead to AI innovation concentrated in a few urban hubs, leaving much of Latin America on the margins.

Here, the GAVI Alliance provides an instructive model. Just as GAVI united governments, industry and philanthropic organizations to bridge vaccine gaps in poorer regions, Latin American nations can convene a multi-stakeholder AI consortium to democratize compute resources.

Shared data centres, cloud credits and harmonized data standards would allow startups and academic institutions to overcome funding and infrastructure barriers. A bond-issuing model – akin to GAVI’s finance mechanisms – could underwrite these efforts, while ethical and safety guidelines ensure AI is both broadly accessible and responsibly governed.

By pooling resources and talent, the consortium could also strengthen technodiversity. Latin America’s bilingual dominance (Spanish and Portuguese) and many Indigenous languages foster richer training data for unique local models that can compete internationally.

Rather than relying disproportionately on English-language datasets or solutions developed exclusively in Silicon Valley, the region could produce AI systems that reflect its own cultural, linguistic and environmental nuances. This inclusive approach would mitigate bias, preserve cultural heritage and bring new talent into the AI ecosystem.

All these threads converge on a larger vision in which Latin America reimagines how AI is powered, developed and deployed.

The region can become the world’s premier supplier of clean energy for AI, whether through direct data-centre hosting (“powershoring”) or exporting green hydrogen to global tech hubs.

Meanwhile, local AI innovators can tackle food security, environmental conservation, industrial efficiency and healthcare challenges with far-reaching impacts.

The time for leaders – within Latin America and in multilateral forums such as the World Economic Forum – to act on this vision is now.

By promoting investments, training the next generation of data scientists and implementing transparent governance for AI, the region can not only spur economic growth but also contribute new ethical, cultural and sustainable paradigms to global technology development.

Latin America can show that doing things differently in AI does not mean settling for a marginal role. It means raising the bar for how this transformative technology can serve society, the planet and future generations.

https://www.weforum.org/stories/2025/01/latin-america-ai-standards-fueling-governing/