Mexico’s Bet on Artificial Intelligence

Like all countries, Mexico could benefit greatly from artificial intelligence (AI). KPMG expects more than half of Mexican companies to use AI within three years. But so far, progress has been slow.

Mexico’s AI ecosystem has invested in digital infrastructure and talent, but it still lacks a national vision and strategy for AI. As a result, other countries are surpassing Mexico; Mexico’s ranking in the Oxford Insight AI Government Readiness Index fell from 22nd in 2018 to 68th last year. Yet efforts to develop a national AI strategy have stalled.

But there are reasons for the optimistic outlook for AI in Mexico. Indeed, even without a national strategy, expert groups are developing a vision and policy recommendations to accelerate the responsible development and deployment of AI technologies in Latin America’s second-largest economy.

Former Mexico City Mayor Claudia Sheinbaum has expressed interest in technology and innovation, hoping to spark government interest in the field.

Claudia Sheinbaum expressed her interest in technology and innovation to renew the government’s interest in this area.

He will no doubt hear a lot about the promise of AI for Mexican agriculture, health care and finance, among others—priority industries for a new collaboration between the Eon Institute and the Wilson Center on the economic potential of AI in Mexico, the subject of a recent conference in Mexico City hosted by both organizations.

Mexico’s agriculture today industry is poorly prepared to use AI. There is little information about the needs of the sector, little training of the workforce, insufficient digitalization and infrastructure, and insufficient government support. However, the opportunities are clear, and the agricultural sector is eager to explore the applications of AI technologies.

The country’s healthcare system faces various challenges related to AI implementation, including concerns about privacy and bias. As a result, even health institutions optimistic about AI are reluctant to move forward without clear guidance on regulation. Mexico’s financial sector was expected to grow faster, but it too has fallen short. Industry analysts are already warning of an “AI bubble,” with high expectations for productivity gains but persistently low AI adoption rates.

None of this is surprising, given the newness of the technology and the Mexican government’s approach, slow from the start. But given the widespread interest in AI and the efforts spearheaded by civil society and industry, there’s little doubt that AI will one day fulfill its promise for Mexico’s economy.