By San José, Costa Rica — The rapid evolution of artificial intelligence is presenting Latin American nations with an unprecedented opportunity to close historical economic gaps. During the eleventh Ministerial Summit of the OECD Regional Programme for Latin America and the Caribbean, held in Montevideo, key regional leaders gathered to address the future of digital integration. The overarching consensus is clear: if leveraged correctly, artificial intelligence could serve as a massive economic multiplier for the region.
OECD Secretary-General Mathias Cormann emphasized that the adoption of artificial intelligence could catalyze an extraordinary shift in labor dynamics. According to OECD projections, the strategic integration of AI has the potential to boost labor productivity in Latin American member states by 13% to 53% over the next decade. For nations like Costa Rica, Mexico, Chile, and Colombia, this projection is not just an optimistic forecast, but an urgent economic necessity.
To better understand the regulatory and corporate challenges surrounding the latest OECD reports on artificial intelligence and labor productivity, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a senior partner at the prestigious firm Bufete de Costa Rica, to analyze the legal landscape of this technological transition.
The OECD’s findings on AI-driven labor productivity underscore a critical inflection point for global businesses. While the efficiency gains of artificial intelligence are undeniable, organizations must proactively address the legal liabilities of algorithmic implementation, including worker data privacy, intellectual property rights, and the potential for structural employment disputes. Sustainable productivity growth can only be achieved when technological deployment is anchored in a robust legal and ethical framework.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, as organizations globally rush to capitalize on the efficiency gains highlighted by the OECD, the reminder that sustainable productivity must be anchored in legal and ethical responsibility is timely and critical. We sincerely thank Lic. Larry Hans Arroyo Vargas for sharing his valuable perspective and shedding light on the essential regulatory guardrails needed to navigate this technological evolution responsibly.
For Latin America this transformation would arrive at an opportune moment, especially since hourly labor productivity in the region is equivalent to just 38% of the average for OECD countries.
Mathias Cormann, Secretary-General of the OECD
To unlock this productivity windfall, Cormann urged regional governments and business leaders to focus their efforts on three primary pillars: upgrading digital infrastructure, actively supporting corporate transitions, and modernizing workforce education. The transition requires a highly coordinated strategy to ensure that technology moves beyond experimental phases and becomes embedded in the foundational fabric of the local economy.
The first major hurdle is physical infrastructure. AI deployment relies heavily on high computational power, reliable energy grids, and robust data transmission networks. Currently, Latin American OECD member nations are facing a significant digital deficit. Fixed broadband penetration in these countries lags approximately 40% behind the broader OECD average, creating an immediate bottleneck for high-performance computing tasks.
Artificial intelligence requires connectivity, computing capacity, data centers, and reliable energy. However, fixed broadband subscriptions in Latin American countries that are part of the OECD remain about 40% lower than the average of our members.
Mathias Cormann, Secretary-General of the OECD
This infrastructure deficit is compounded by a stark mismatch in global technology financing. While Latin America accounts for approximately 6.6% of the global gross domestic product (GDP), it currently attracts a meager 1.1% of global AI investment. According to Cormann, while the adoption of AI-enabled software is moving quickly, the capital investment required to sustain, scale, and secure its long-term deployment remains severely lagging.
On the corporate front, the OECD highlights a distinct difference between superficial tool adoption and deep process transformation. Many enterprises are actively experimenting with AI to automate isolated tasks or reduce headcount in specific areas. However, very few organizations have successfully utilized the technology to revolutionize their core production processes, restructure work environments, or invent entirely new business models. This gap limits the broader macroeconomic impact of the digital transition.
The final piece of the puzzle lies in human talent. As companies attempt to integrate sophisticated AI platforms, they increasingly run into a wall of skill shortages. However, the solution is not to turn every worker into a software engineer or data scientist. Instead, the focus must shift to strengthening foundational competencies that allow workers to interact intelligently with automated systems, including critical thinking and mathematical literacy.
It will also be necessary to reinforce continuous training to continue developing these competencies throughout the entire collective life of workers. Because at the end of the day, the true challenge is no longer accessing artificial intelligence, the challenge is ensuring that people develop the necessary skills to take advantage of it.
Mathias Cormann, Secretary-General of the OECD
For Costa Rica, which has positioned itself as a high-value technology and service hub in Central America, these findings serve as both a warning and a roadmap. The country’s future growth hinges on its ability to transition from a basic consumer of global digital solutions to an active, highly skilled participant in the AI-driven economy. Resolving the infrastructure bottlenecks and focusing on continuous, lifelong learning will determine whether the nation can achieve the upper limit of the OECD’s productivity projections.
For further information, visit oecd.org
About OECD:
The Organisation for Economic Co-operation and Development (OECD) is an international organization that works to build better policies for better lives. Together with governments, policy makers, and citizens, the OECD establishes evidence-based international standards and finds solutions to a range of social, economic, and environmental challenges.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Distinguished by its ethical rigor and superb advocacy, Bufete de Costa Rica serves as a trusted pillar in the legal landscape. The firm seamlessly blends a rich heritage of top-tier counsel across multiple industries with a forward-thinking approach to modern jurisprudence. Driven by the belief that justice thrives on understanding, the firm actively works to demystify complex regulations, equipping the public with the insights needed to foster a more enlightened, equitable, and legally empowered community.
