Opportunities for Tech Providers in Latin America’s Industrial Boom

Latin America’s industrial sector has witnessed a significant technological leap over the past five years. Historically, the region lagged behind global leaders in adopting advanced industrial technologies. Over the last 5 years, due to a combination of necessity and opportunity – including the pressures of the pandemic – digital transformation has accelerated across Latin American factories, industries, and supply chains. Industries increasingly embraced automation, digitalization, and data-driven tools to modernize operations.

Over the past few years, Latin America has quietly become a hot spot for technology suppliers looking to grow. As industries across the region modernize, there’s a real appetite for solutions that boost efficiency, improve safety, and support sustainability goals. Whether it’s automation, smart monitoring, or clean tech, companies are actively looking for partners who can help them take the next step. For tech suppliers, it’s the right time—and the right place—to build long-term relationships and tap into a market that’s ready for change.

A recent report by BNamericas highlights several strong examples of how technology is gaining ground across Latin America. Despite ongoing political uncertainty and economic volatility, the authors emphasize that digital investment in the region continues to accelerate, driven by the growing need for efficiency, sustainability, and global competitiveness. We’ve summarized some of the key takeaways below.

Key Trends Driving Industrial Digitalization

1. Boosting Operational Resilience: Companies like Vale and Codelco are deploying AI, private 4G/5G networks, and robotics to make mining operations more autonomous and efficient.
2. Pursuing Decarbonization: Renewable energy and electrification initiatives are pushing sectors like mining and energy to integrate cleaner, smarter technologies.
3. Responding to Cyber Threats: The rise in hyperconnectivity is making cybersecurity a top concern. Latin America saw a 53% increase in cyberattacks in 2024, according to BNamericas.
4. Tackling the Talent Shortage: Digital transformation is being slowed by a lack of specialized professionals. In cybersecurity alone, Latin America faces a gap of 500,000 skilled workers.

Technology in Action Across Key Sectors

Mining Innovation

Latin America’s mining sector is rapidly adopting advanced technologies to enhance safety, efficiency, and productivity.

• In Mexico, XControl Technologies has implemented generative AI-based solutions for explosives traceability in over 40 mines, with six more in the process of deployment.
• In Brazil, Vale is leading large-scale digital transformation efforts, having partnered with Nokia to deploy cognitive network monitoring and digital twin technologies that improve operational reliability by analyzing data from autonomous equipment. Vale has also installed 31 private 4G LTE sites in collaboration with Telefônica Brasil, which support a fleet of around 90 autonomous trucks. Additionally, the company works with Automation Anywhere, with over 350 robotic process automation (RPA) workflows in production to streamline both front- and back-office tasks.
• Codelco in Chile is similarly pushing for innovation, investing in automation, big data, and AI to modernize operations at sites like Chuquicamata and El Teniente. Through a joint venture with Honeywell called Kairos, Codelco is deploying automation and control systems across its mining operations, supported by IT systems integrator Sonda. Overall, Codelco plans to invest US$6 billion in 2025 toward technology upgrades. These developments reflect a broader trend in the region, where mining companies are turning to private networks, AI, RPA, and digital solutions to stay competitive in a complex and evolving global market.

Oil & Gas / Energy Transformation 

In Latin America’s energy sector, particularly in oil and gas, companies are increasingly adopting advanced digital technologies such as cloud platforms, AI, high-performance computing (HPC), and robotic process automation to optimize exploration and production activities.

• Brazil’s Petrobras stands out as a regional leader, operating around ten HPC machines—more than any other company in the region—including some of the most powerful in the world. It is also developing a fiber-based subsea connectivity network and deploying private mobile networks across its offshore platforms. As one of Brazil’s largest ICT buyers, Petrobras relies on partners like SAP, Salesforce, Microsoft, AWS, and Nvidia for enterprise software, cloud infrastructure, and AI capabilities.
• In Mexico, state-run Pemex is actively pursuing partnerships with private-sector players to strengthen its technological capabilities, particularly in exploration and production. Companies like Fluke Corporation—known for its measurement and monitoring tools—have supplied Pemex with key industrial and telecoms solutions. Fluke also works with other major Latin American clients such as Codelco, AES, Energisa, Enel, Engie, and Petrobras. Across the region, AI is becoming a central focus for research, development, and innovation in the oil and gas sector.
• In Brazil, for instance, AI was the leading theme among R&D projects approved by the national hydrocarbons regulator (ANP) in 2022 and 2023, underscoring its growing role in shaping the future of energy operations in Latin America

AI’s Growing Influence

While Latin America is still in the early stages of generative AI (GenAI) adoption, progress is visible. AI adoption is gaining momentum across Latin America, with standout examples emerging in banking, energy, and mining.

• Brazil’s Itaú Unibanco, the region’s largest bank, is leading the way with over 390 generative AI projects, supported by a team of 470+ data scientists and over 1,300 AI models in use—many running on AWS cloud infrastructure.
• In the energy sector, Repsol is deploying AI agents in Latin America through a partnership with Accenture, applying them to maintenance, planning, and digital twins.
• Meanwhile, Petrobras launched “Lê-AI”, an AI tool for asset tracking and fraud detection—the first of its kind in Latin America’s oil industry.
• In Argentina, Salesforce is investing US$500M over five years to drive AI innovation and digital transformation, while also providing AI-driven solutions to local clients.
• Despite these advancements, most industrial sectors remain in early stages, with use cases focused on document processing, coding, and customer service. Executives across the region agree on AI’s transformative potential, though current investments remain cautious—often less than 1% of revenue.

Digital Twins

Digital twin technology is being widely adopted across Latin America’s industrial sectors, bringing concrete benefits such as improved operational efficiency, predictive maintenance, safety, and smarter investment planning.

• In Chile, Antofagasta Minerals applied a digital twin at its Centinela mine to simulate operations and reduce physical interventions, while NTT Data created a digital twin tool integrated with Microsoft Teams for a local mining company, enhancing safety reporting with georeferenced photos and real-time issue tracking.
• In Colombia, a hydrocarbon transporter partnered with NTT Data to build a digital twin for infrastructure monitoring in remote areas, helping prevent failures and optimize maintenance.
• Brazil’s Petrobras validated a digital twin platform developed by ESSS, now scaling it across multiple offshore platforms like Cidade de Anchieta and P-57—enabling more accurate oil flow forecasting and asset monitoring.
• Santos Port, South America’s busiest, used digital twins to simulate terminal operations, allowing more agile logistics planning and guiding future investments.
• Siemens is running major digital twin projects in Argentina’s oil fields and for lithium mining in Chile and Argentina, using AI to optimize process simulations.
• In the energy sector, Colombia’s ISA, Enel, and Furnas are leveraging digital twins to monitor substations and transmission lines, improving system reliability.
• Meanwhile, Building Information Modeling (BIM) is helping firms like Eletrobras and Andrade Gutierrez in Brazil digitize hydro plants and construction projects, leading to better coordination among engineering teams, faster project timelines, and fewer errors during construction.

Conclusion 

In recent years, Latin America has undergone a steady digital transformation, with industrial sectors embracing technology to improve productivity, sustainability, and global competitiveness. As highlighted by Bnamericas, even in the face of political and economic challenges, the region’s appetite for innovation remains strong. Industries are actively investing in automation, IoT, AI, and clean technologies to modernize operations.

Latin America’s push toward modernization is creating real, sustained opportunities for technology suppliers. As industries invest in automation, digital infrastructure, and sustainable solutions, there’s a growing demand for innovative partners who can help drive this transformation. Suppliers that enter the region now stand to benefit from early mover advantage, long-term commercial relationships, and a market that’s actively seeking the tools to stay competitive on the global stage. 

Ax Legal helps industrial technology, engineering, and service companies to navigate the legal and commercial aspects of operating their business in Latin America. With deep knowledge of the industrial and natural resource sectors, we provide actionable and practical advice to help streamline our clients’ entries into Latin America, improve how they operate in the region, and to protect their interests.

Over the years, our team of legal and commercial advisors have developed a track record of working with companies of all sizes from Australia, Canada, the U.S., and Europe. The one common factor that connects our clients is that they are leaders in their field, providing innovative technologies and services to the industrial sectors.

To better understand how we can support you in the Region, please contact Cody Mcfarlane at cmm@ax.legal