“Humans were always far better at inventing tools than using them wisely. It is easier to manipulate a river by building a dam than it is to predict all the complex consequences this will have for the wider ecological system.”― Yuval Noah Harari

MARKETS

August 18, End Of Day

• Argentina
• S&P MERVAL Index = 584,293.19 (YTD = 189.13%)
• Brazil
• BOVESPA Index = 115,408.52(YTD = 5.17%)
• Chile
• S&P IPSA Chile = 3,460.69 (YTD = 9.08%)
• Colombia
• MSCI COLCAP = 1,132.66 (YTD = –11.93%)
• Mexico
• IPC Mexico BMV = 53,194.39 (YTD = 9.76%)
• Peru
• S&P/BVL Peru = 22,898.55 (YTD = 7.35%)

TECH

Fundraising picks of the week

Aperta Salud: A chain of low-cost primary healthcare centers with a focus on user experience and digital solutions, to empower patients in Bolivia to receive efficient inclusive, and affordable healthcare. Check the case here.

illow: Makes your website compliant in less than 5 minutes. They enable companies to use users’ data. Their SaaS gets/stores users’ consent and their API helps companies to automate data deletion once users request it. Only non-European Union startup that won a Privacy Grant from the EU. Check the case here.

Dive deeper into other fundraising firms in LatAm here.

More in tech

LATAM’s AI Surge: Beyond the Hype and Into Innovation

AI is undoubtedly shaping industries around the globe, and LATAM is no exception. From significant investment announcements to practical implementation the region's AI landscape offers unique insights. According to Andrés Barreto, Managing Director of the Techstars Miami accelerator, LATAM has great potential to become a leader in the development of artificial intelligence, with a strong entrepreneurial ecosystem and experienced tech talent.

Developments and Investments

1. Globant's Billion-Dollar Pledge: Globant has committed USD 1 billion over five years in Latin America to bolster AI and other emerging technologies, including the creation of an Emerging Technologies Innovation Center in Brazil.
2. AI Startups Investments: 2022 alone saw $229 million in investments in AI startups in the region, with a record $874 million in 2021, underscoring the growing investor confidence in Latin America's AI sector.
3. Strategic use of AI by public sector: Governments are acknowledging the importance of AI and are taking strategic steps to encourage its growth, both nationally and regionally. Seven LATAM countries have even developed or are developing national AI strategies, further solidifying the region's commitment to this technology.

Navigating the Hype

1. Real Impact vs. Trend: There's a tendency to view AI as a trend or buzzword. However, investors and businesses are cautioned to focus on practical use cases that can create real value. The region's focus on practical applications of AI, as evidenced by efforts to improve customer service through AI in the banking sector, for instance, signals a trend toward prioritizing impactful AI solutions.
2. Ethical and Technical Challenges: Issues such as lack of transparency, potential biases in algorithms, and ethical concerns are noteworthy. They reflect broader global challenges in the responsible development and deployment of AI.
3. AI as a Tool, Not an End: AI is increasingly viewed as a means to achieve specific goals, rather than an end in itself. This perspective is seen as more aligned with creating sustainable value.

Future Considerations

1. Talent Development: While some companies have committed to training and hiring professionals, the broader challenge of talent development remains a complex issue in the region.
2. Collaboration and Partnerships: The landscape indicates a need for more robust collaboration between businesses, governments, and educational institutions.
3. Regulatory Environment: The legal and regulatory environment can either foster growth or present barriers, and this remains an ongoing consideration for both domestic and foreign investors.

CURRENT AFFAIRS

Argentina: Javier Milei, a radical libertarian economist, unexpectedly won Argentina's primary poll, taking 30.1% of the vote and signaling a strong shift to the right ahead of the country's presidential election. His success is seen as a response to Argentines' frustration with economic instability, and it threatens to shake up the race, though his victory in October is not assured. The primary result also raises concerns about Argentina's already fragile economy, and in the coming weeks, the IMF is set to approve a $7.5bn loan disbursement, which might be affected by the nation's failure to meet specific fiscal targets. Markets in Argentina experienced significant volatility following the unexpected victory, and in response to the shock result, the central bank devalued its official exchange rate by 18% and lifted interest rates by 21 percentage points to 118%, while dollar-denominated bonds fell as much as 15%.

Brazil: The 15th BRICS summit, gathering major emerging economies will take place in Johannesburg from August 22-24. Key issues expected to be on the agenda include the potential expansion of the bloc, with over 40 countries expressing interest in joining; discussions around boosting local currency fundraising and lending within the New Development Bank (NDB), to mitigate the impact of foreign exchange fluctuations; and ways to improve economic cooperation among the diverse economies, focusing on trade, investment, energy cooperation, infrastructure, digital economy, and the job market.

Ecuador: The assassination of Ecuadorean presidential candidate Fernando Villavicencio has plunged the country into a deeper security crisis, emphasizing concerns over drug-related violence and political instability. The killing has prompted widespread fear and uncertainty ahead of the snap election triggered by outgoing President Guillermo Lasso. The situation is further complicated by the nation's struggle with drug traffickers and political tensions, leaving citizens and analysts concerned for the safety of both candidates and voters.

FURTHER READING

Podcast about AI in LATAM

• “Artificial intelligence may spark job loss fears across the Americas, but businesses and people in the region are increasingly adopting the technology.” Ángel Melguizo, partner at Argia and Latin America advisor to UNESCO on ethics and AI, outlined what countries need to do to benefit from the AI revolution without leaving people behind. He also covers the urgent need for a “coalition of the good” in terms of AI regulation, and where Latin America stands on the matter”. Listen here.