The economic value of AI stems from its ability to significantly boost productivity. By automating tasks and augmenting complex decision-making processes, AI technologies enable workers and businesses to perform higher-value activities more efficiently, increasing economic output with the same amount of time, labour and capital. This productivity enhancement is vital, as productivity growth is closely correlated with increased wages, higher standards of living and overall economic prosperity. The countries and industries that integrate AI most effectively can achieve sustained competitive advantages, drive innovation and enjoy long-term economic stability. AI has the potential to boost global productivity by 0.5% to 3.4% every year to 2040.8 In Latin America, this productivity boost could reach between 1.9% and 2.3% annually by 2030, based on our estimates. For a region where growth has long been driven by labour rather than productivity, AI offers a timely opportunity to leap ahead. As the demographic dividend fades, it can offset the drag by shifting growth towards productivity and enabling more sustainable development. Early signals of progress are emerging across sectors, businesses and countries. Yet, as this momentum builds, structural gaps continue to hold back scale and impact. Without targeted action, the benefits of AI risk being confined to a narrow set of actors and geographies. Decisive, coordinated action can put the region on a path to sustained growth. Inaction risks prolonged stagnation. Emerging technologies, such as analytical AI and generative AI, have the potential to create substantial additional value for Latin AmericaFIGURE 4 AI’s potential impact on the Latin American economy, $ trillion Analytical AI Generative AI Total0.6–1.00.5–0.7 1.1–1.7 Source: McKinsey & Company Analysis, 2025 Latin America in the Intelligent Age: A New Path for Growth 10

Latin America Intelligent Age