Why AI May Be Better for Latin America Than You Think

By Eduardo Levy Yeyati

A new IMF report adds to a sense Latin America may lose less from the AI revolution than previously thought—though its preparedness is lacking.

BUENOS AIRES—“It is difficult to make predictions, especially about the future.” This quote, often attributed to Nobel Prize-winning physicist Niels Bohr, has never been more valid than when applied to the ongoing debate about AI and labor markets. A few years ago, the consensus was clear. Automation would likely replace medium-skilled jobs, depress low-skilled wages due to competition from displaced middle-skilled workers, and widen the skill premium. This trend was exacerbated by the decline of jobs that require personal contact and the surge in remote work and e-commerce during...

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