Why you should look to foreign talent for AI, IoT and ML

Why you should look to foreign talent for AI, IoT and ML

The AI revolution is reshaping industries, but not all software development is directly part of it. However, innovations in AI and software engineering are driving progress across multiple sectors. This revolution has unfolded over decades, evolving from academic research to the industrial powerhouse we see today.

The journey began with machine learning concepts developed in academic circles. By the late 1990s, software giants built the infrastructure to handle massive datasets for training algorithms. The incorporation of deep neural networks then transformed AI into a practical tool for business applications such as targeted advertising, behavioral analysis, and data-driven decision-making.

Similarly, blockchain technology followed a comparable path — from academic theory to widespread adoption. However, both AI and blockchain come with challenges, particularly the need for highly specialized talent to manage complex systems and ensure successful deployment.

In this context, Latin America is emerging as a prime location to source skilled software engineers and researchers.

Why Latin America Is a Hotspot for Tech Talent

Latin America has become a prime destination for software-related R&D due to several key factors:

  1. Strong Academic Foundations – The region’s universities offer a broad range of degrees in software engineering, data science, and AI.
  2. Mature Software Ecosystem – Decades of growth have led to a well-established tech culture, with experts returning from top global companies to share best practices and foster innovation.
  3. Cost-Effective Talent Pool – Favorable exchange rates make Latin America an attractive region for outsourcing specialized skills.

Countries like Brazil, Argentina, and Chile are at the forefront of this tech boom, with a growing number of public and private initiatives focused on software development, AI research, and IoT solutions.

Brazil’s R&D Ecosystem

Brazil is one of Latin America’s leaders in software research. The São Paulo Research Foundation (FAPESP) plays a significant role in funding cutting-edge R&D projects across various fields. In 2017, the foundation allocated over $283 million to research initiatives, with more than half of that amount going toward application-oriented projects in partnership with businesses.

Notable collaborations include the creation of an AI research center in São Paulo, a joint venture between FAPESP and IBM, which will receive a $20 million investment from industry and academic partners.

Brazil’s private sector is also investing heavily in AI. Bradesco, one of the country’s largest banks, launched Next, a digital bank designed for millennials. Using AI, Next enhances risk analysis, customer service, and security protocols.

In the tech hub of Belo Horizonte, Google established its Latin American engineering headquarters near UFMG (Federal University of Minas Gerais), one of the world’s leading research institutions in information extraction. The story behind Google’s presence in the city dates back to 1999 when a team led by Berthier Ribeiro-Neto developed a search engine called TodoBr. The team later founded Akwan, which Google acquired in 2005.

Argentina’s Growing AI Community

Argentina has a thriving AI and software engineering community, with significant developments in both academia and industry. The country has hosted major global conferences such as the International Joint Conference on Artificial Intelligence (IJCAI) and the International Conference on Software Engineering (ICSE).

Key research institutions in Argentina include:

  • LaFHIS (Laboratory of Fundamentals and Tools for Software Engineering) at the University of Buenos Aires (UBA), which focuses on formal methods, model checking, and automated testing.
  • LIAA (Laboratory for Applied Artificial Intelligence) at UBA, which conducts interdisciplinary research on computational neuroscience, computational linguistics, speech recognition, and interactive dialogue systems.

One standout example of applied AI in Argentina is Eva, a virtual interviewer developed by LIAA in partnership with Workia, a human resources tech company. Using machine learning, Eva conducts recruitment interviews, analyzing candidates’ speech for coherence and evaluating seven technical competencies, including leadership and proactivity. In 80% of cases, Eva’s assessments align with those of expert interviewers.

Chile’s IoT Innovations

Chile has positioned itself as a leader in IoT (Internet of Things) solutions. Companies like Satelnet specialize in enabling clients to operate in remote areas using satellite technology, providing real-time access to critical information.

Satelnet’s IoT solutions allow businesses to monitor equipment in remote locations, such as fish farms in Magallanes or mobile pontoons, facilitating better decision-making through reliable data transmission.

Other major companies, including Fujitsu, have also developed IoT solutions in Chile, signaling a growing interest in IoT-driven innovation.

How to Leverage Latin American Talent for Your Business

Latin American talent is highly skilled and creative, making it a valuable resource for companies seeking to strengthen their R&D capabilities. However, effective outsourcing requires careful planning and strong communication practices.

Here are some best practices for working with remote teams in Latin America:

  1. Share Your Vision and Culture
    Ensure your remote team understands your organization’s mission, values, and objectives. Schedule regular face-to-face meetings to build rapport and foster collaboration.
  2. Overcome Language Barriers
    While many Latin American developers are proficient in English, some cultural nuances and idioms may require clarification. Encourage open communication to avoid misunderstandings.
  3. Establish Clear Communication Protocols
    Create documentation outlining your processes, goals, and expectations. Use time-tracking tools and project management software to monitor progress and identify potential roadblocks.
  4. Track and Document Everything
    Keep records of all agreements and discussions. Miscommunication can lead to delays and wasted opportunities, so it’s essential to have a clear record of what has been discussed.
  5. Improve Your Own Processes
    Collaborating with a remote team can reveal gaps in your communication and business processes. Use this opportunity to refine your internal workflows and improve overall efficiency.

Why Now Is the Time to Invest in Latin America

Latin America’s software industry is booming. With highly skilled talent, favorable exchange rates, and a growing focus on AI, IoT, and software engineering, the region offers enormous potential for companies looking to expand their R&D efforts.

Countries like Brazil, Argentina, and Chile have established themselves as key players in the global tech ecosystem, and the trend shows no signs of slowing down.

By incorporating Latin American talent into your workforce, you can benefit from cultural and knowledge exchange, improve productivity in critical areas, and gain a competitive edge in an increasingly data-driven world.

The key to success? Communication and collaboration. With the right approach, you can unlock the potential of Latin America’s thriving tech scene and build long-term partnerships that drive innovation and growth.

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