An astonishing 80% of Latin American executives have already implemented artificial intelligence (AI) to enhance existing revenue streams or create new ones, according to the Global TCS AI in a business study by Tata Consultancy Services (TCS).
These leaders are actively redefining their companies, workforce, and customer acquisition strategies, thanks to the catalytic role played by AI.
The survey, conducted among 1,300 CEOs and senior executives from 24 countries, including Mexico, Brazil, Colombia, and Chile, revealed that Latin American and North American executives are the most enthusiastic about the potential impact of AI on their businesses.
"AI has the capacity to transform businesses beyond what we can imagine today. Specifically, GenAI, by harnessing the computational power of data, cloud, and AI, there emerges a force capable of generating unprecedented changes in the business environment and creating a new paradigm for the modern market. Companies that adopt this technology early can offer exponential value to their customers," commented Marcelo Wurmann, CEO of TCS Latin America.
In Latin America, 67% of entrepreneurs view AI favorably, while in North America, that perception stands at 63%.
Furthermore, 95% of Latin American companies have planned, ongoing, or completed AI implementations in their corporate functions, and two-thirds of respondents in Latin America recognize the potential impact of AI on their business.
“2023 was a year of great enthusiasm, during which all companies experimented with AI/GenAI use cases. We are entering an era of widespread and deep adoption of AI by businesses. However, they realize that the path to producing AI solutions is not easy, and building a mature AI company is a marathon, not a sprint," said Dr. Harrick Vin, Chief Technology Officer at TCS.
Despite the optimism, most companies in the Latin American market are not fully prepared to maximize AI's potential.
Only 7% say that AI is already a differentiator in transforming their business.
Executives cite industry standards/regulations, implementation costs, and existing contracts as obstacles to broader AI efforts.
On the other hand, executives believe that instead of replacing human workers, AI will enhance and improve human capabilities.
According to 69% of Latin American respondents, human creativity or strategic thinking will remain their company's competitive advantage.
The rise of sophisticated AI applications has intensified attention to security, privacy concerns, and ethical dimensions of AI use.
Furthermore, 40% of senior executives in Latin America prefer global and regional regulations in this rapidly evolving landscape, while 30% favor global AI standards for specific use cases and outcomes.