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What Can Artificial Intelligence Do for Stagnant Productivity in Latin America and the Caribbean?
Author:
Bas B. Bakker
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Sophia Chen
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Dmitry Vasilyev https://isni.org/isni/0000000404811396 International Monetary Fund

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Olga Bespalova https://isni.org/isni/0000000404811396 International Monetary Fund

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Moya Chin
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Daria Kolpakova
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Archit Singhal
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Yuanchen Yang https://isni.org/isni/0000000404811396 International Monetary Fund

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Series:
IMF Working Papers
Volume/Issue:
Volume 2024: Issue 219
Language:
English
Publication Date:
11 Oct 2024
DOI:
https://doi.org/10.5089/9798400290770.001
ISBN:
9798400290770
ISSN:
1018-5941
Pages:
60
Keywords:
Artificial Intelligence (AI); Productivity Stagnation; Technological Innovation; Latin America; Caribbean; Economic Growth; Labor Productivity; Automation; Macroeconomic Impact; Digital Transformation; Cross-Country Analysis; Regional Development; Technology Adoption; Emerging Economies; Economic Policy.; difference AI; AI adoption; technology producer; AI's role; Artificial intelligence; Productivity; North America; Europe; Global; Asia and Pacific
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Since 1980, income levels in Latin America and the Caribbean (LAC) have shown no convergence with those in the US, in stark contrast to emerging Asia and emerging Europe, which have seen rapid convergence. A key factor contributing to this divergence has been sluggish productivity growth in LAC. Low productivity growth has been broad-based across industries and firms in the formal sector, with limited diffusion of technology being an important contributing factor. Digital technologies and artificial intelligence (AI) hold significant potential to enhance productivity in the formal sector, foster its expansion, reduce informality, and facilitate LAC’s convergence with advanced economies. However, there is a risk that the region will fall behind advanced countries and frontier emerging markets in AI adoption. To capitalize on the benefits of AI, policies should aim to facilitate technological diffusion and job transition.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund