How Are Latin American Tech Leaders Outpacing Traditional Firms in the Race for GenAI Adoption?

What Can You Learn from Rappi and Invgate About Scaling Generative AI Without the Chaos?

Discover why Latin American tech startups are adopting Generative AI faster than traditional enterprises, often using a “scattergun” approach [content]. Explore insights from Boston Consulting Group’s Latam Tech Forum, analyze real-world success stories from Rappi and Invgate, and master the four essential strategies to overcome talent gaps and data risks [content].

Speed is nothing without direction—continue reading to discover how to move from rapid experimentation to a strategic “North Star” that ensures long-term ROI [content].

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In Latin America, tech company leaders are ushering in disruption, adopting and deploying GenAI across use cases more rapidly than leaders at traditional companies. Boston Consulting Group surveys CEOs and founders at the region’s leading companies at an exclusive, invitation-only conference, sharing insights about their experiences with GenAI adoption to help leaders across sectors spearhead their own GenAI transformations. Learn why it’s vital that you prioritize a clear “North Star” when adopting GenAI, how to tackle the most common adoption challenges, and prepare to harness the full potential of this powerful technology, while mitigating risks.

Take-Aways

• Latin American tech companies are rapidly deploying GenAI, outpacing traditional firms.
• Gain valuable lessons from three leading Latin American companies that were early GenAI adopters.
• Seize GenAI’s transformative potential while mitigating risks by addressing four challenging areas.

Summary

Latin American tech companies are rapidly deploying GenAI, outpacing traditional firms.

The majority of leaders in Latin America’s tech sector agree on one thing: Gen AI is a disruptive force, poised to transform industries and drive value. At the 2024 Latam Tech Forum (LTF), a private conference connecting those driving change at the biggest Latin American (Latam) tech companies, Boston Consulting Group interviewed over 170 CEOs and C-level executives to gain insight into achievements, and challenges, related to GenAI adoption in the region. Prominent Latam tech companies are taking a markedly different approach to harnessing the potential of GenAI than leaders at traditional companies: Tech companies are adopting this emerging technology rapidly, deploying GenAI across use cases and functions, and reshaping core business functions, while those at traditional companies are taking a more strategic approach to adoption, with more clearly defined goals.

“Despite lesser planning, tech companies have adopted Gen AI more rapidly than traditional businesses.”

Only 21% of Latam tech companies — as opposed to 51% at traditional companies — report guiding their GenAI adoption with “an ambition (North Star), a GenAI strategy, and a clear implementation plan.” Tech companies have demonstrated some product enhancements and quick wins, such as optimizing data management and creating efficiencies by automating customer service functions, with their “scattergun” approach to adoption. However, Boston Consulting Group suggests that tech companies start prioritizing the development of a more structured GenAI strategy and clear direction, or risk wasting resources, missing out on investment opportunities and slowing execution capabilities.

Gain valuable lessons from three leading Latin American companies that were early GenAI adopters.

Companies can learn from the following companies, pioneering GenAI in Latin America:

1. Invgate — This IT Management software company has seen a 30% to 40% increase in productivity after embedding GenAI capabilities in its service management and asset management solutions. For example, Invgate introduced a ticket summarization feature, which helped it create efficiencies in its team member onboarding processes. They benefited from being “vendor agnostic” when it came to GenAI capabilities, and from strategically investing in talent and proprietary models.
2. Sensedia — The Brazilian API management and integration strategy company is using GenAI to enhance its API design and client services. For example, its API simplification feature helps it identify duplicate APIs and reduce costs. The company successfully bridged talent gaps by forming small agile teams to speed up the GenAI learning curve.
3. Rappi — This on-demand delivery app operates in nine Latin American countries, connecting over 300,000 businesses, and leverages GenAI across use cases, ranging from customer service (GenAI provides human workers with suggested responses) to merchandising content generation. The company’s advantage came in part from prioritizing solutions “with the most direct path for impactful adoption” over those that were more complex, requiring in-house development, and from providing solutions that augmented — but didn’t replace — human labor.

Seize GenAI’s transformative potential while mitigating risks by addressing four challenging areas.

Boston Consulting Group suggests companies follow these recommendations to fully leverage the potential of GenAI in Latin America:

1. Address talent shortages — The traditional tactic of hiring the most experienced talent no longer works within a GenAI, given that many lack familiarity with the tools. Focus instead on upskilling workers and recruiting professionals who’ve recently trained in GenAI.
2. Mitigate risks and embrace a responsible AI framework — Prioritize data privacy, transparency and ethical AI, and human-centered decision-making, while maintaining regulatory compliance.
3. Pursue “data mastery” — Companies should embrace the three pillars of data mastery: “data capabilities, data design, and data governance.” This may entail incorporating a bigger range of data inputs, facilitating multimodal data processing requirements (for example: ensuring regulatory compliance for data inputs from different sources), and mitigating the risks associated with the use of massive amounts of unstructured data.
4. Pursue “tech readiness” — Companies should also embrace the role of CTOs and CIOs, who must guide others through the GenAI transformation. Work to nurture aligned partnerships and develop platforms that meet your needs, giving your firm the capacity to “keep reinventing the tech stack at lightning speed.”

About the Authors

Lucas Frenay, Julian Herman, David Marin, Federico Muxi, and Joan Vinals are professionals with Boston Consulting Group.