This IIF Staff Paper examines Artificial Intelligence (AI) in the financial sector with a focus on Latin America and the Caribbean (LAC). The paper considers the potential for AI to drive economic growth in LAC and the use cases that are driving development in the region, such as payments and fraud prevention, access to credit, and personalized offerings. AI value chains have emerged as an important aspect of the technology, and they impact AI development and deployment from an investment, market, and policy point of view.

This paper builds on an IIF Staff Report published last year on AI, Data, and the Cloud, and it delves deeper into challenges that data frameworks can present—and the interplay between different sets of regulations from various authorities—limiting the full potential of AI in the economy.

IIF acknowledges the support of Amazon Web Services, Inc., the Interamerican Development Bank (IDB) LAB, and VISA, Inc. in sponsoring the production of this report and in making their staff available to the IIF for discussion.