AI Revolution Faces Digital Disparities in Latin America

The surge of GenAI is reshaping the global workforce, but its reach is not evenly distributed, reports the World Bank. While its adoption has skyrocketed, particularly in middle-income countries, challenges such as digital disparity and potential job losses still loom.

More than half of GenAI-web traffic comes from middle-income countries, states the World Bank’s report. In Latin America, 66% of executives prefer candidates with AI skills over those with more traditional work experience. By the end of 2025, 23% of employees are expected to change their profession or field of expertise due to AI advancements; and 93% of employees are willing to participate in upskilling or reskilling programs to adopt AI technologies in the workplace, reports MBN. 

Yet, a study by the International Labour Organization and the World Bank found that only 7 to 14% of workers across Latin America and the Caribbean can benefit from GenAI due to limited access to the necessary digital tools. In countries like Brazil and Mexico, workers in wealthier segments are disproportionately likely to access jobs that could benefit from GenAI. For example, those in the richest quintile are significantly more likely to have the necessary infrastructure, such as reliable internet and computers, to take advantage of GenAI tools. This digital divide limits the ability of lower-income workers to tap into the benefits of this technology.

Meanwhile, the automation risks associated with AI are a concern. In certain sectors, such as customer support and banking, jobs are at high risk of being automated, disproportionately affecting women and youth, groups already facing challenges in the labor market. According to the ILO, the youth unemployment rate in the region remains three times higher than that of adults, with a high percentage (60%) of young people employed under informal conditions, reports MBN.  Between 1 to 6% of jobs across the region are at risk of being fully automated, a situation that could exacerbate existing inequality, explains The World Bank. 

Despite these challenges, AI aims at improving personalized learning experiences and enhancing the quality of healthcare services, especially in underserved areas. For example, Tuiio, a microfinance initiative by Santander, is applying gamification to financial education in rural Mexico. Yet, these opportunities require tackling infrastructure gaps, such as the lack of access to electricity and high-speed internet.