Top 10 Countries for AI Startups in South America in 2025

The artificial intelligence sector in South America is poised for significant transformation by 2025. With governments and private sectors investing heavily in tech innovation, various nations are establishing themselves as fertile grounds for AI startups. This article presents the Top 10 Countries for AI Startups in South America in 2025, detailing their unique capabilities and contributions to the AI ecosystem.

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1. Brazil

Key Data Points:

Market Size: The AI market in South America is projected to reach $8.77 billion in 2025, with Brazil being a major contributor. (Source: Statista)
Government Investment: The Brazilian government announced a $4 billion AI plan to foster the creation of domestic AI systems. (Source: Latin Times)
Tech Hub: São Paulo is the largest and most dynamic tech hub in Brazil and Latin America, with a massive market, supportive infrastructure, and increasing international investment. (Source: Visible.vc)
AI Talent: Brazil has a growing pool of tech talent, particularly in areas like fintech, AI, and cloud technologies. (Source: Huntly)
Startup Ecosystem: Brazil's startups are making an impact across sectors like financial solutions, CRM tools, and B2B marketplaces. (Source: LATAM Republic)

2. Mexico

Key Data Points:

Tech Hubs: Mexico City and Guadalajara are prominent tech hubs. (Source: Jalasoft, Huntly)
AI Talent: Guadalajara has strong technology-oriented universities, contributing to its robust talent pool for AI. (Source: Huntly)
Nearshoring Advantage: Mexico's proximity to the U.S. makes it a popular choice for nearshore outsourcing. (Source: Huntly)
Investment: Amazon Web Services (AWS) plans to invest $5 billion in Mexico over the next 15 years, launching cloud infrastructure in 2025. (Source: Horasis)
Startup Growth: Mexico has a vibrant ecosystem of startups and international companies focused on tech. (Source: Teilur Talent)

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3. Argentina

Key Data Points:

Tech Hub: Buenos Aires is a leading technology center in Argentina. (Source: Huntly)
AI Specialization: Buenos Aires has increased tech specialization in areas like fintech, agritech, and AI. (Source: Huntly)
Talent Pool: Argentina has a strong and educated talent pool of IT professionals, many of whom are fluent in English. (Source: Huntly)
Nearshore Destination: Argentina is a leading choice for software development outsourcing, offering a combination of talent and cost-effectiveness. (Source: Huntly, Blue Coding)
AI-powered solutions: Argentinian company Kilimo uses AI to connect farmers with companies to improve their irrigation practices, demonstrating the practical application of AI. (Source: World Economic Forum)

4. Chile

Key Data Points:

AI Leader: Chile is recognized as a regional leader in AI, scoring high in technological infrastructure, training programs, and supportive policies. (Source: Latin Times)
Government Support: Countries like Chile have introduced pro-technology policies, startup incubators, and tax incentives. (Source: Teilur Talent)
5G Coverage: Chile is projected to have 68% 5G coverage by 2030, contributing to the growth of tech in the country. (Source: Alcor BPO)
Investment in Education: Chile has invested heavily in education, particularly in STEM. (Source: Teilur Talent)
Startup Support: Chile is actively supporting tech startups through funding and various support programs. (Source: Blue Coding)

5. Colombia

Key Data Points:

AI Education: Colombia is establishing an Artificial Intelligence Faculty at the University of Caldas, the first of its kind in Latin America, with a $17 million government investment. (Source: Latin Times)
Government Support: Colombia is actively supporting tech startups through funding and various support programs. (Source: Teilur Talent, Blue Coding)
Growing Talent Pool: The country is producing a growing number of professionals with advanced AI, data science, and engineering skills. (Source: golabstech.com)
Investment in Tech: The country is attracting increasing investments in its tech sector. (Source: Americas Market Intelligence)
AI Adoption: Businesses in Colombia are using AI to enhance customer experience by analyzing real-time data for tailored recommendations. (Source: Leal 360)

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6. Uruguay

Key Data Points:

AI Talent: Uruguay has the highest proportion of programmers skilled in AI tech in Latin America. (Source: Alcor BPO)
IT Market Growth: Uruguay's software market is projected to reach more than $308 million in 2028, while the IT services market will peak at $1 billion in 2029. (Source: Alcor BPO)
5G Coverage: Uruguay will have 65% 5G coverage by 2030, supporting the tech sector. (Source: Alcor BPO)
Startup Ecosystem: Montevideo is home to 85% of IT professionals, with a growing startup ecosystem particularly in E-commerce and Retail. (Source: Alcor BPO)
Government Support: Uruguay has introduced pro-technology policies, startup incubators, and tax incentives to foster innovation and entrepreneurship. (Source: Teilur Talent)

7. Peru

Key Data Points:

Emerging Market: Peru's startup ecosystem has shown steady growth, attracting national and international investors. (Source: Invest in Peru)
Government Initiatives: The Peruvian government is encouraging the use of AI through various policies and funding opportunities. (Source: J.P. Morgan [31])
Tech Education: Increasing initiatives in tech education are equipping a younger generation with necessary AI skills. (Source: Edu News)
AI Applications: Local startups are focusing on sectors like health tech and agri-tech to innovate using AI. (Source: TechCrunch)
Venture Capital Growth: There has been a notable increase in venture capital dedicated to tech and AI sectors. (Source: PitchBook)

8. Ecuador

Key Data Points:

Tech Ecosystem Development: Ecuador is fostering a growing tech ecosystem, particularly within AI applications in environmental sustainability. (Source: Blue Coding)
Government Support: The government is keen on increasing investment in AI through incentives for startups. (Source: Latin Times)
Education Initiatives: New programs are being introduced in universities to promote AI and tech education. (Source: Huntly)
Local Startups: Startups are innovating in tourism tech and agriculture, utilizing AI for better service delivery and productivity. (Source: Hatch)
Investment Growth: Growing interest and investment in deep tech and AI applications are becoming evident in the market. (Source: TechCrunch)

9. Paraguay

Key Data Points:

Emerging Tech Hub: Paraguay is emerging as a notable tech hub with initiatives to cultivate AI startups. (Source: Alcor BPO)
Government Policies: The Paraguayan government is beginning to draft policies conducive to nurturing innovation in AI. (Source: Latin Times)
Talent Presence: Increased focus on education is leading to a more skilled workforce in tech, especially in AI. (Source: Huntly)
Startup Ecosystem: Local startups are emerging in logistics and fintech sectors, leveraging AI for better operational efficiency. (Source: Blue Coding)
Strategic Location: Paraguay’s strategic geographical location offers businesses a cost-effective entry point to regional markets. (Source: International Trade Center)

10. Bolivia

Key Data Points:

Growing Interest: Bolivia is witnessing increasing interest from foreign investors, particularly in the tech sector. (Source: InvestinBolivia)
Learning Initiatives: Educational institutions are beginning to include AI in their curricula, fostering a new generation of tech talent. (Source: Huntly)
Local Innovation: Bolivian startups are focusing on practical applications of AI in fields like agriculture and resource management. (Source: TechCrunch)
Investment Options: Few initiatives have emerged to support tech entrepreneurs, encouraging local startup development. (Source: J.P. Morgan [31])
Government Support: Efforts are being made to align AI adoption with national development goals. (Source: International Development Association)

This overview highlights the promising trajectories of AI startups across South America in 2025, showcasing each country's unique attributes and contributions to the growing AI landscape.

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FAQ

Q: Which country is projected to have the largest AI market in South America by 2025?

A: Brazil is expected to contribute significantly to the AI market, which is projected to reach $8.77 billion by 2025. Learn more about Brazil's market potential.

Q: What investment is planned by Amazon Web Services in Mexico?

A: Amazon Web Services plans to invest $5 billion in Mexico over the next 15 years to launch cloud infrastructure in 2025. Discover more about AWS's investment in Mexico.

Q: How is Argentina utilizing AI in agricultural practices?

A: Argentinian company Kilimo uses AI to connect farmers with companies to improve irrigation practices, showcasing AI's practical application in agriculture. Explore Kilimo's innovation.

Q: What role does Chile play in AI development in South America?

A: Chile is recognized as a regional leader in AI, benefiting from strong technological infrastructure and government support for tech startups. Learn more about Chile's AI landscape.

Q: What recent advancement is Colombia making in AI education?

A: Colombia is establishing the first Artificial Intelligence Faculty at the University of Caldas, supported by a $17 million government investment. Discover more about Colombia's investment in AI education.

Q: What is Uruguay's position in the AI talent ecosystem?

A: Uruguay boasts the highest proportion of AI-skilled programmers in Latin America, with a growing startup ecosystem centered in Montevideo. Read about Uruguay's AI talent.

Q: What is a significant trend regarding AI adoption in Latin America?

A: It is anticipated that by 2029, 50% of Latin America will adopt AI, marking a significant increase from previous years. Find out more about AI adoption trends.

Q: How is the AI investment landscape changing in Latin America?

A: There is a notable increase in venture capital funding focused on AI startups in Latin America, particularly those with clear value propositions for global scalability. Explore the investment trends.

Q: What kind of support is being provided to tech startups in Chile?

A: The Chilean government has introduced pro-technology policies, including startup incubators and tax incentives to support the tech ecosystem. Learn more about government support in Chile.

Q: What is driving the growth of data centers in Latin America?

A: The development of data centers is growing at a rate of 15% to 35% annually in Latin America, fueled by the need for infrastructure to support AI development. Read about the data center growth.

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.