AI adoption could lift Latin America’s economy 5.1%, but cut wages 20.9%

  • IDB convened regional leaders and technology executives to advance a shared AI adoption roadmap.
  • 5.1% is the projected regional economic gain under broad adoption, versus 0.3% under limited adoption.
  • Wages could rise 5.3% with worker mobility but fall 20.9% without it.

Broad adoption of artificial intelligence could make the economies of Latin America and the Caribbean 5.1% larger after a decade, according to forthcoming research from the Inter-American Development Bank. Under limited adoption and small productivity gains, regional GDP could rise by only 0.3%. The labor-market outcome would depend heavily on whether workers can shift into expanding sectors: wages could increase between 2.3% and 5.3% for those who do, but fall by 13.5% to 20.9% for those who cannot. The IDB convened regional leaders and technology executives in New York on the sidelines of the United Nations General Assembly to advance a shared roadmap for broad and safe AI adoption, including a proposed regional mechanism with common strategy and joint investment guidelines. The discussion covered regulation, skills, digital infrastructure, data systems, technology deployment and potential risks. The IDB’s 2026 flagship report, "From Digitalization to Artificial Intelligence: Turning Promises into Productivity," is due in November. The release said AI is already reducing exclusion errors in social-protection programs, improving public-safety outcomes and raising worker productivity. IDB President Ilan Goldfajn also called for increased financing, long-term purchase contracts and minimum-price protection for critical-minerals supply chains, including a proposed buyers’ club for minerals produced under stronger labor and environmental safeguards. He provided no details on the club’s structure, participants or potential IDB financial backing.

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