Top 15 Countries for AI Startups in South America in 2025

As South America embraces the AI revolution, more countries are emerging as hotspots for technology innovation in 2025. With strong ecosystems, burgeoning talent pools, and supportive government policies, this continent is making strides in AI startups across various sectors, particularly fintech, healthtech, and agriculture. Here’s a detailed overview of the Top 15 Countries for AI Startups in South America for 2025.

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1. Brazil

Details: Brazil stands out as a clear leader in the South American AI landscape, with a robust startup ecosystem thriving in cities like São Paulo, which boasts the nation’s largest tech hub.

Data Points:

Market Size: Projected to contribute significantly to the South American AI market, which is set to reach $8.77 billion in 2025.
Startup Hubs: São Paulo is home to over 1,000 startups focusing on various sectors.
Investment: Attracts around 60% of Brazil's startup investments.
Talent Pool: Features a growing pool of 500,000 IT specialists, aided by institutions like the University of São Paulo.
Key Sectors: Major strengths in fintech, e-commerce, healthtech, and agritech.
Learn more about Brazil's AI landscape

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2. Colombia

Details: Colombia's tech scene is rapidly evolving, particularly in food tech and software development, with Bogotá leading the charge as its primary tech center.

Data Points:

Software Development Market: Projected to reach $35 billion by 2027.
Startup Ecosystem: Hosts about 1,300 startups.
Talent Pool: Home to 150,000 software engineers, with around 15,000 graduates each year.
Government Support: Strong government incentives for tech businesses.
Major Hub: Bogotá hosts 62% of Colombian tech companies.
Discover Colombia's tech ecosystem

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3. Argentina

Details: Argentina has cultivated a strong IT talent base with a vibrant startup scene, primarily located in Buenos Aires.

Data Points:

Startup Ecosystem: Features about 3,800 tech businesses and 1,107 startups.
Foreign Investment: Software development represents 58% of foreign direct investment.
Talent Pool: Employs 130,000 programmers and produces 20,000 STEM graduates annually.
Government Support: Various government programs support tech innovation.
Tech Skills Ranking: Argentine IT professionals receive high rankings for their skills.
Explore Argentina's tech landscape

4. Chile

Details: Known as the regional AI leader in LATAM, Chile has established a solid foundation for tech innovations, using its strong infrastructure and supportive policies.

Data Points:

Technology Infrastructure: High scores for investment in tech infrastructure and supportive policies.
Startup Ranking: Among the top countries in LATAM for its startup ecosystem.
Tech Hub: Santiago, dubbed as "Chilecon Valley," is a significant tech ecosystem.
Clean Energy Innovation: Known for its advancements in clean energy tech.
Training Programs: Strong focus on tech training and innovation supports its growth.
Discover more about Chile's AI initiatives

5. Uruguay

Details: Uruguay has a high concentration of AI-skilled programmers and is rapidly developing as a tech hub, with Montevideo as its focal point.

Data Points:

AI Talent: Possesses the highest proportion of AI-skilled programmers in LATAM.
IT Professionals: 85% of IT professionals are based in Montevideo.
Startup Numbers: Though smaller, it has 56 startups in AI and other sectors.
Key Sectors: Notable focus on e-commerce and retail.
Industry Presence: Hosts major tech companies like Cognizant and Microsoft.
Learn about Uruguay's tech scene

6. Mexico

Details: Though geographically located in North America, Mexico is an integral part of Latin America's tech discussion, featuring vibrant ecosystems in major cities.

Data Points:

AI Company Growth: Experienced a 273% increase in AI companies from 2020 to 2024.
AI Adoption Rate: Second-leading country in AI adoption within the region.
Talent Pool: Houses over 700,000 IT professionals.
Startup Ecosystem: Particularly robust ecosystems in Mexico City and Guadalajara.
Sector Presence: Guadalajara is known for strong fintech and health tech sectors.
Explore Mexico’s tech advancements

7. Peru

Details: Peru is cultivating its startup scene, especially in fintech and e-commerce, with Lima acting as the central hub.

Data Points:

Startup Presence: Developing startup ecosystem with notable enterprise growth.
Key Sector: Active advancements in the fintech sector.
Notable Companies: Mi Media Manzana exemplifies AI-based startup innovation.
Emerging Talent Pool: Increasing number of tech professionals entering the market.
Tech Hub: Lima serves as a central point for IT innovation.
Learn more about Peru's developing tech landscape

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8. Costa Rica

Details: Costa Rica is quickly adopting AI technologies, complemented by a strong investment in STEM education and a collaborative relationship with U.S. tech companies.

Data Points:

AI Growth: Witnessing significant growth in AI adoption.
STEM Focus: Strong efforts to invest in STEM education and workforce development.
Expanding Talent Pool: Increasing number of professionals skilled in AI.
Proximity to U.S.: Its geographical location allows for beneficial nearshore collaboration.
Business Environment: A stable political and economic climate enhances its startup environment.
Explore Costa Rica's tech developments

9. Bolivia

Details: Bolivia is developing its tech sector, particularly in Cochabamba, which serves as a software development hub.

Data Points:

Tech Hub: Cochabamba hosts about 80% of Bolivia's software development.
Growing Startup Scene: While still emerging, the local startup community is gaining traction.
Opportunities in AI: Increasing interest and investment in AI technologies.
Educational Institutions: Growth of educational programs focused on software skills.
Local Innovations: Startups showing promise in localized solutions.
Discover Bolivia's tech efforts

10. Ecuador

Details: Ecuador's tech sector is poised for growth as it joins the ranks of LATAM’s rising tech hubs, especially in AI and software development.

Data Points:

Sector Growth: Anticipated overall growth in the tech sector.
Startup Potential: Opportunities growing particularly in urban areas.
Government Initiatives: Initiatives aimed at fostering innovation and tech adoption.
Education and Training: Emphasis on STEM education to uplift tech proficiency.
Long-term Vision: Committed to enhancing its tech infrastructure to support startups.
Learn about Ecuador's tech landscape

11. Paraguay

Details: Paraguay's tech sector is gradually emerging, with opportunities in AI and software development growing steadily toward 2025.

Data Points:

Emerging Ecosystem: Growing interest in establishing a startup culture.
Government Support: Government initiatives aimed at attracting tech investments.
Associations and Networks: Development of local networks to connect startups and investors.
Education Programs: Focus on improving technical education is underway.
Strategic Location: Offers advantages of being centrally located in South America.

12. Guyana

Details: Guyana’s technology sector is beginning to emerge, with a focus on building infrastructure and skills for future tech developments.

Data Points:

Tech Infrastructure: Early stages of focusing on tech infrastructure growth.
AI Potential: Opportunities in leveraging AI for local industries such as agriculture.
Government Policy: Increasing governmental focus on technology as a growth sector.
Investment Interest: Influx of foreign investment in technology.
Educational Development: Various programs under development aimed at bolstering tech talent.

13. Suriname

Details: Suriname is in its nascent stages of tech development but shows potential for growth in software and AI startups.

Data Points:

Developing Ecosystem: Emerging network of startups in urban areas.
Government Initiatives: Government efforts to diversify economy include tech support.
Global Partnerships: Interest in partnerships with foreign tech companies.
Rising Education Programs: Initiatives to educate the youth in tech-related fields.
Investment Opportunities: Opening up for investments in various tech sectors.

14. French Guiana

Details: While relatively small, French Guiana is witnessing some growth in the tech arena with expectations for future developments.

Data Points:

Startups Emerging: Incremental appearance of local startups focusing on technology.
Support from France: Backed by France’s infrastructure and investments.
Education Focus: Increasing focus on STEM education programs.
Cultural Influence: Integration of tech solutions tailored to the local community's needs.
Research Collaboration: Partnerships with French institutions for tech advancement.

15. Falkland Islands

Details: The Falkland Islands are limited in tech but show potential in niche areas related to services and government initiatives.

Data Points:

Limited Infrastructure: Current tech infrastructure is minimal but has room for development.
Service-based Opportunities: Opportunities in tech services related to finance and tourism.
Governmental Backing: Support for developing local technology solutions.
Education Initiatives: Focus on developing digital skills.
Potential for Grant Programs: Expected structure for grants and funding for tech experimentation and growth.

In conclusion, while South America is home to several countries with emerging AI startup ecosystems, each country has unique strengths and characteristics that contribute to the growth of technology and innovation in the region.

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FAQ

Q: Which country in South America is leading in AI startup development?

A: Brazil is often recognized as a leader in AI development in South America, particularly in sectors such as fintech, e-commerce, healthtech, and agritech. Learn more about Brazil's AI market.

Q: What is Colombia's position in the AI startup landscape in 2025?

A: Colombia is emerging as a significant tech hub with Bogotá housing 62% of Colombian tech companies and having 1,300 startups. Discover more about Colombia's tech ecosystem.

Q: How does Argentina rank in terms of its AI startup ecosystem?

A: Argentina boasts a strong startup ecosystem with over 3,800 tech businesses, particularly excelling in fintech and agritech sectors. Learn more about Argentina's startup scene.

Q: What makes Chile a notable player in the AI sector?

A: Chile is recognized for its technological infrastructure and government support for startups. Santiago is known as "Chilecon Valley" and leads in clean energy innovations. Discover Chile's tech advancements.

Q: What strengths does Uruguay offer in AI talent?

A: Uruguay has the highest proportion of AI-skilled programmers in Latin America, with 85% of its IT professionals located in Montevideo. Learn more about Uruguay's tech capabilities.

Q: Is Mexico included in the AI startup discussions for South America?

A: While primarily North American, Mexico is often included in discussions about Latin American tech hubs, featuring significant ecosystems in both Mexico City and Guadalajara. Explore Mexico's AI landscape.

Q: What is the state of AI startups in Peru?

A: Peru has a developing startup scene, particularly in fintech, with Lima emerging as a key hub for technology. Find out more about Peru's tech developments.

Q: How is Costa Rica progressing in the AI sector?

A: Costa Rica is making strides with growing AI adoption and a focus on STEM education. Its proximity to the US makes it ideal for nearshore tech partnerships. Learn more about Costa Rica's advancements.

Q: What is the current status of Bolivia in the AI startup scene?

A: Bolivia, although not as prominent, has a tech hub in Cochabamba, which hosts 80% of the country's software development. Discover more about Bolivia's tech initiatives.

About the Author

Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur.

Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).

She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond and launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks.