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Artificial Intelligence
The big AI obstacle in LAC: labour informality
In a recent blog IMF economists identify labour sector informality as one of the major obstacles to AI take-up in Latin America and the Caribbean. A large part of the regional labour force operates entirely outside the formal economy. Typically, they work on their own or in small and medium sized enterprises, paying no taxes and receiving no social security benefits. These companies often struggle to survive and are less likely to attract investment in new technologies such as AI. According to the IMF less than half of the region’s jobs will be impacted by AI. This will protect the individuals and companies involved from the short-term disruption caused by the arrival of AI. But in the longer term it will also shut them out from the pro-growth benefits of the new technology.
- Introduction
- The slow-burn rise in AI
- Case studies: what is AI being used for in LAC?
- Is Latin America ready?
- The opportunity and risks of AI
- AI in LAC, as seen by ChatGPT.
- Quantifying the gains
- Will the bots destroy Latin American jobs?
- The big AI obstacle in LAC: labour informality
- The DeepSeek challenge
- The promise of Latam-GPT
- Rising data centre energy demand
- The European strategy
- Latin America faces regulatory challenges
- Brazil: pushing new legislation
- Mexico: slow development
- Chile: leader in regulation
- Argentina: seeking low regulation to attract investors
- Colombia: more than half the country’s companies are investing in AI
- Conclusion – a game of high stakes