The arrival of generative artificial intelligence (genAI) into the mainstream at the end of 2022 has sent demand for higher cloud computing power soaring, and Latin America is no exception.
Research firms report an expected USD $18.7 billion growth in the cloud computing market in LatAm between 2022 and 2027.
Despite this, areas for improvement still remain. Countries like Uruguay, Colombia and Peru, still face challenges to cloud adoption, including regulation, availability of data servers, and overall adoption of new technologies in industry such as AI.
Multi-national cloud service providers, including Google Cloud, Amazon Web Services (AWS), and Microsoft Azure are competing for market share, and partnering with local technology consultancies to help bring technologies of the future to businesses in LatAm.
One such initiative was announced in December by AWS. The company said it signed a five-year Strategic Collaboration Agreement (SCA) with Escala 24×7, a technology consulting firm based in Miami that operates across Latin America.
It specializes in designing solutions for companies using AWS cloud, and says it prides itself on helping companies across LatAm grow, innovate and digitally transform.
The company is a AWS Premier Partner, and the five-year collaboration complements the 12-year relationship that has already existed between Escala 24×7 and AWS.
According to a company statement shared with The Sociable, the joint initiative will see Escala 24×7 playing a key role in promoting genAI adoption with its clientele in 19 countries across LatAm.
“By working together, AWS and Escala 24×7 are merging AWS’s powerful infrastructure and service leadership with our deep understanding of the needs of businesses in the region and our expertise in designing, implementing, and optimizing innovative solutions that accelerate modernization, drive the use of Generative AI, and generate a positive and sustained economic impact on companies in the region,” said Alejandro Planas, CEO of Escala 24×7, in a statement.
The collaboration will focus on four core areas including: Generative AI to develop apps that automate tasks and obtain business insights; strengthening security to protect data systems; creating specialized financial solutions to drive efficiency and innovation in the sector; optimizing cloud operations and modernizing applications; as well as offering tailored managed services to meet client needs.
“We are delighted to continue strengthening our long-standing relationship with Escala 24×7,” said Paula Bellizia, vice president of Amazon Web Services for Latin America. “With this strategic collaboration, we will be able to accelerate our joint initiatives so that even more organizations in Latin America adopt the cloud, modernize their infrastructures and become more innovative, productive, efficient, sustainable and successful, maximizing the benefits of the solutions we offer together.”
And while experts predict that technologies like genAI could have a transformative impact on the productivity of the region, experts at the World Bank are also cautioning Latin American countries to implement labor protections for workers whose jobs could be affected by the technology. Overall, the World Bank reports, between 26% and 38% of jobs could be affected by genAI in the coming years.
Some countries in Latin America, including its largest economy, Brazil, are putting AI front and center in their innovation plans. The country announced this year an “Artificial Intelligence Plan” that would earmark an estimated $4 billion to invest in local AI initiatives.
“Through technology, we want to ensure benefits to our country and our people, and this is only possible if public authorities, civil society, and the private sector work together. The AI plan is the first result of this,” Luciana Santos, Brazil’s Minister of Science and Technology, said at the time.
