However, Latin America’s demographic advantage of a growing young labour force that compensated for its weak productivity is fading: birth rates are falling, and average age is rising. McKinsey estimates suggest that, by 2053, over 25% of the region’s population will be aged 60 or older.5 Without a productivity pivot, slowing labour-force growth is likely to translate into lower GDP growth in the region. One way for the region to achieve that pivot is through the power of emerging digital technologies. Productivity growth in Latin America has been behind the global average; employment has been the main driver of growth for the past two decadesFIGURE 3 Employment growth Productivity growthReal GDP growth contribution of employment and productivity growth, 2005-2024, CAGR, % 3.2 2005-2014 2015-2024 2005-2014 2015-20241.9 1.4 -0.31.20.93.5 2.41.13.0 1.71.3Employment growth bigger contributor to GDP growthProductivity growth bigger contributor to GDP growth Latin America World Source: Latin America in the Intelligent Age - AI capabilities survey, October 2025, n=129 The economic potential of AI is substantial. Global estimates suggest that these technologies could contribute between $17 trillion and $26 trillion to the global economy, annually.6 Generative AI alone may deliver up to $7.9 trillion in annual economic benefits by augmenting knowledge work and accelerating decision-making processes.7 To assess the potential economic impact of AI in Latin America, we segmented our analysis to look separately at the impact of analytical AI and generative AI (GenAI). In Latin America, AI could contribute a total of between $1.1 trillion and $1.7 trillion annually to the regional economy; this accounts for roughly 6% of the total worldwide economic potential of AI. We project that approximately 60% of that potential will come from analytical AI, generating $0.6 trillion to $1 trillion in annual value. For GenAI, we estimate an additional $0.5 to $0.7 trillion. 1.1 The economic potential and key drivers of AI adoption in Latin America Latin America in the Intelligent Age: A New Path for Growth 9

Latin America Intelligent Age