Artificial Intelligence in Brazil: Impacts on Economic Growth, Productivity, and Inequality
Abstract
The paper examines the economic implications of artificial intelligence (AI) integration in Brazil, focusing on its impact on productivity, growth, and inequality across key sectors—agriculture, manufacturing, and services—while also analyzing indirect effects in healthcare and education. Utilizing a narrative and exploratory case study approach supported by quantitative and qualitative data from sources such as the IBGE, IMF, and OECD, the study reveals that AI's potential to transform Brazil’s economy is moderated by infrastructural disparities, limited human capital, and sector-specific constraints.
Findings indicate that AI can moderately enhance productivity in precision agriculture and predictive maintenance, yet its adoption is uneven and often limited to capital-intensive firms in technologically advanced regions. The services sector, dominated by informal labor and low digitalization, presents limited scalability for AI-driven innovation. While job displacement due to automation is projected to affect over half of Brazil’s workforce, opportunities for job creation in AI-related industries remain marginal due to the country’s low tertiary education rates and limited R&D capacity.
Nonetheless, AI holds transformative potential in non-obvious domains. In healthcare, AI can reduce administrative inefficiencies and improve diagnostic accuracy, indirectly enhancing human capital and contributing to long-term economic growth. Similarly, AI-enabled educational tools offer cost-saving mechanisms and skill-leveling effects, especially valuable in a country where only 15% of the workforce holds tertiary qualifications. The study also warns of the risk of AI exacerbating regional inequalities due to uneven broadband access and technological readiness.
The paper concludes that while AI’s first-glance impact on Brazil’s economy may seem modest, its latent potential is significant—particularly if supported by policies that invest in digital infrastructure, upskilling, and equitable access. Targeted interventions are critical to ensuring AI fosters inclusive and sustainable economic development in Brazil.
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Data Availability Statement
The data supporting the findings of this study are publicly available from reputable national and international institutions. These include the Brazilian Institute of Geography and Statistics (IBGE), International Monetary Fund (IMF), World Bank, Organisation for Economic Co-operation and Development (OECD), and official Brazilian government portals (e.g., Gov.br, Agência Gov). The specific datasets and reports used are cited within the paper’s reference list. Additional information or clarification regarding data sources can be provided upon request.
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