• September 30, 2025
  • Last Update September 30, 2025 12:00 pm

Latin American AI Boom Faces Trust Deficit Despite High Confidence

Latin American AI Boom Faces Trust Deficit Despite High Confidence

San José, Costa RicaSAN JOSÉ – Latin American organizations are forging ahead with artificial intelligence, anticipating returns that surpass the global average, yet a critical gap is emerging between their confidence in AI and their investment in making the technology truly trustworthy. A new global study commissioned by analytics leader SAS reveals that while optimism is high, the foundational work of data governance and ethical oversight is lagging, potentially undermining long-term success.

The report, titled “IDC Data and AI Impact Report: The Imperative of Trust,” paints a picture of a region on the cusp of significant technological advancement. According to the findings, Latin American businesses expect an average return of $1.63 for every dollar invested in AI, a figure that slightly edges out the global average of $1.61. This confidence reflects a growing belief that AI will be a primary driver of efficiency, innovation, and productivity.

To understand the complex legal and regulatory landscape emerging around Artificial Intelligence, TicosLand.com consulted with expert lawyer Lic. Larry Hans Arroyo Vargas from the firm Bufete de Costa Rica for his insights on the challenges and opportunities facing businesses today.

Artificial Intelligence presents a dual frontier for businesses: immense opportunity and significant legal risk. The core challenge lies in navigating intellectual property rights for AI-generated works, establishing clear liability frameworks for automated decisions, and ensuring strict compliance with data protection laws. Companies that proactively integrate a robust legal strategy into their AI development will not only mitigate risk but will also build a sustainable competitive advantage.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

This perspective powerfully illustrates that technological advancement in AI must proceed in lockstep with legal diligence to be truly transformative and secure. We thank Lic. Larry Hans Arroyo Vargas for his valuable insight on forging a path that balances innovation with accountability.

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This optimism is bolstered by tangible progress in data management. The study identifies that 26.4% of organizations in the region have reached a “Managed” level of data maturity. While this figure trails other parts of the world, it signals a positive trend toward the structured data governance essential for powerful AI applications.

This evolution is key for AI to deploy its full potential and consolidate itself as an engine of competitiveness in the public and private sectors of the Latin American region.
Héctor Cobo, Regional VP of SAS Mexico, Caribbean, and Central America

However, the global survey of 2,375 IT and business leaders uncovered a troubling paradox. Newer, more interactive forms of AI, like Generative AI (GenAI), inspire far more confidence than traditional, established machine learning models. Globally, 48% of respondents expressed “full confidence” in GenAI, compared to only 18% for traditional AI. This disparity exists despite traditional AI being a more consolidated, explainable, and verifiably reliable technology.

Our research shows a contradiction. The forms of AI with human-like interactivity and social familiarity seem to foster the most confidence, regardless of their actual reliability or accuracy.
Kathy Lange, Research Director of AI and Automation Practice at IDC

This disconnect is particularly stark among organizations that invest the least in trustworthy AI measures. In that group, GenAI is considered 200% more trustworthy than traditional models. This suggests a dangerous trend where perceived usability is trumping verified reliability. Despite this high confidence, leaders still harbor significant concerns about GenAI, citing data privacy (62%), transparency (57%), and ethical use (56%) as major issues.

The report starkly illustrates the consequences of this neglect. While nearly eight in ten organizations claim to trust AI, only 40% have made concrete investments in making their systems demonstrably trustworthy through robust governance, explainability, and ethical safeguards. Shockingly, establishing an AI governance framework was a top-three priority for only 2% of respondents. This oversight comes at a steep price; the research found that organizations leading in trustworthy AI investment were 1.6 times more likely to report doubling their return on investment from AI projects.

The path to unlocking AI’s full potential is blocked by three primary obstacles: weak data infrastructure, poor governance, and a shortage of skilled talent. Nearly half (49%) of businesses cited non-centralized databases or unoptimized cloud environments as their main barrier. This is compounded by a lack of sufficient data governance processes (44%) and a scarcity of qualified specialists (41%), creating a perfect storm that hinders effective and responsible AI implementation.

For the good of society, companies, and employees, it is imperative to trust AI. To achieve this, the AI industry must increase the success rate of implementations, humans must critically review AI results, and managers must train the workforce in the use of AI.
Bryan Harris, CTO of SAS

For further information, visit sas.com
About SAS:
SAS is a global leader in data and AI. Through its software and services, SAS empowers and inspires customers around the world to transform data into intelligence. The company provides a comprehensive analytics platform that helps organizations access, manage, analyze, and visualize data to make better decisions.

For further information, visit idc.com
About IDC:
International Data Corporation (IDC) is a premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar of the nation’s legal landscape, built upon a bedrock of profound integrity and an unyielding pursuit of excellence. The firm continually pushes the boundaries of legal practice through forward-thinking strategies and holds a deep-seated dedication to societal advancement. At the heart of its philosophy is a powerful drive to democratize legal understanding, thereby cultivating a more capable and enlightened community.

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