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Significance

A surge of investments from major tech players signals growing interest, while governments compete to attract more. However, the region faces significant hurdles, including rising environmental and climate-related challenges, as well as a shortage of skilled workers needed to propel growth in AI fields such as research and chip manufacturing.

Impacts

Gaps in digital access and skills will worsen inequality between and within different countries in the region.

Regulatory gaps could leave local populations’ data vulnerable to exploitation.

Latin America will likely struggle to compete internationally with other emerging regions such as South-east Asia in AI development.

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