IDB: AI Adoption Could Boost Latin America GDP 5.1%, Cut Wages Up to 20.9%

Broad adoption of artificial intelligence could expand Latin America and the Caribbean's economy by 5.1% after a decade, but wages could fall as much as 20.9% if workers cannot shift into AI-expanding sectors, according to forthcoming Inter-American Development Bank research released Sept. 21. The IDB's 2026 flagship report, due in November, estimates regional GDP would rise only 0.3% under limited adoption and small productivity gains. Wages could increase 2.3% to 5.3% if workers move into growing sectors, but drop 13.5% to 20.9% if they cannot. IDB President Ilan Goldfajn also urged more financing, long-term purchase contracts and minimum-price protection for critical-minerals supply chains, proposing a "buyers' club" to differentiate minerals produced with labor and environmental safeguards. He gave no details on the mechanism, participants or whether the IDB would provide financial backing.