Microsoft Invests $1.3B in Mexico for AI & Digital Skills Growth

Microsoft announced it will invest US$1.3 billion in Mexico to strengthen the country’s cloud and artificial intelligence infrastructure. A central component of Microsoft's investment is the Artificial Intelligence National Skills Initiative, which seeks to train 5 million people in digital skills. Through these initiatives the company aims to promote the adoption of innovative technologies in small and medium-sized enterprises.

"We are entering a new era of AI with the promise of creating inclusive economic growth and opportunities across all roles, industries, and countries, including Mexico," said Microsoft Chairman and CEO, Satya Nadella, at Microsoft’s 2024 AI Tour in Mexico City. “Our investments in AI infrastructure and training in Mexico will help ensure that people and organizations across the country reap the benefits of this technological shift.” 

The Artificial Intelligence National Skills Initiative will train 5 million people on the appropriate use of AI tools over the next three years, a considerable opportunity considering that job offers related to AI and data science in Mexico grew by 95% in 2023, according to Jorge Torres, director of the School of Engineering and Technology at the International University of La Rioja (UNIR).

Microsoft’s initiative will be implemented in partnership with governments, industries, academia, and civil society, focusing on training users, developers, and organizational leaders. Additionally, the training platform, which is aimed at job seekers, will be developed to align with labor market needs, particularly in the context of the growing use of generative AI in every day work.

Furthermore, this initiative aims to enhance connectivity and promote the adoption of AI among small and medium-sized enterprises to facilitate their digital transformation and optimize their business operations. This is particularly relevant in light of the study "AI in Micro, Small, and Medium Enterprises: Trends, Challenges, and Opportunities," which revealed that in 2023, 57% of SMEs in Mexico used AI primarily to optimize operational efficiency and personalize the customer experience.

This objective will be bolstered by investing in the Bridge Accelerator program, which focuses on preparing regional SMEs to integrate into North America's industry value chains. This initiative aims to help 30,000 SMEs upgrade their business practices and improve their competitiveness and increasing their brand visibility.

Microsoft AI for Good: Solutions to Social and Environmental Challenges

During the announcement, Microsoft stated that it is also committed to addressing current social and environmental challenges in Mexico, placing greater emphasis on its "AI for Good" program. This initiative aims to apply AI to solve specific problems in areas such as health, connectivity, and sustainability.

1. Health Challenges: For example, retinopathy of prematurity (ROP) is one of the leading preventable causes of childhood blindness. Microsoft AI for Good has developed AI models that allow doctors in Mexico to effectively diagnose this condition using smartphones, facilitating early care.

2. Connectivity: Microsoft and Viasat have expanded their 2022 collaboration agreement to "provide internet access to underserved communities in Mexico." This collaboration aims to reach 1.45 million people by 2025, activating networks to provide internet to over 150,000 Mexicans without cellular connectivity. This is complemented by the Mexico Ambassador Program, which seeks to close the digital gender gap.

3. Sustainability: Microsoft has set multiple goals for 2030, including becoming carbon negative and achieving zero waste. The company has contracted over 34 GW of renewable energy in 24 countries, contributing to the global energy transition. In Mexico, Microsoft is focused on increasing access to drinking water and restoring ecosystems, signing agreements to eliminate up to 95,000 tons of CO2 through biochar and reforestation projects.

“This announcement demonstrates Microsoft's confidence and commitment to Mexico in supporting inclusive economic growth in the country,” said Rafael Sánchez Loza, General Director of Microsoft Mexico, in the company's press release. “We seek to empower individuals and businesses by democratizing access to cutting-edge technologies and fostering an ecosystem that supports the development of critical skills for the new digital economy.”

Previous Efforts

According to Nadella, this investment in Mexico will align with Microsoft's AI Access Principles, which were announced in February 2024 and are designed to promote innovation and healthy competition in the rapidly growing AI economy. These principles ensure that AI is used for the public good by forging business partnerships and creating programs that facilitate access to technology for organizations and individuals.

These principles are articulated in five fundamental objectives: enabling innovation and fostering competition, complying with legal obligations, promoting AI partnerships, engaging with customers and communities, and being proactive and collaborating with the government to address regulatory challenges from the early stages of technology development.