CEO: The Challenge of Digitalization with AI in Mexico

Market challenges, new business models, and emerging technologies are key drivers of competitiveness for any economic region in the world. In 2023, the global trade market was valued at $7.488 trillion in North America, $5.865 trillion in Europe, and $1.658 trillion in Asia.

Regarding artificial intelligence (AI), North America has a significant presence, with the United States leading the region. In 2022, the AI market in the U.S. was valued at $37.5 billion. This market is projected to grow substantially, reaching $731.8 billion by 2032, with a compound annual growth rate (CAGR) of 34.6%. This rapid growth highlights AI's potential as a catalyst for innovation and transformation across industries in the country.

Mexico: According to experts from Admexus' Applied Artificial Intelligence Centers, the potential AI market in Mexico is estimated at $0.7 billion across various sectors such as production, consumer goods, and services. Investments planned for this growing market are primarily from leading international companies, with a total investment of $8.77 billion so far. Key investments include Microsoft with $1.3 billion, Amazon with $5 billion, and Santander, among other private enterprises.

Digital Infrastructure, Telecommunications, Internet Access, and Energy Supply are fundamental pillars for the economic and social development of any nation. In this regard, specialists from Admexus-Divirtualigente point out that while the United States and Mexico share geographical proximity, there are significant disparities in these areas that directly affect competitiveness, technological innovation, and quality of life.

In terms of digital infrastructure and telecommunications, the United States has far outpaced Mexico. Over 90% of the U.S. population has access to high-speed internet, enabling widespread access to a variety of digital services. This high level of connectivity is supported by a robust telecommunications infrastructure, including fiber optic networks, rapidly expanding 5G connections, and substantial investments aimed at modernizing networks. Both the U.S. government and private companies have poured billions of dollars into ensuring near-universal coverage, particularly in rural areas, which has helped narrow the digital divide.

On the other hand, Mexico still faces significant challenges in terms of internet access and coverage. While there have been notable advancements, only 65% of Mexican households had internet access in 2023—a figure significantly lower than that of its northern neighbor. Additionally, the quality of internet connections varies greatly between urban, industrial, and rural areas. While mobile internet penetration has grown and the rollout of 4G and 5G networks has begun in major cities, many regions remain disconnected or have only limited access to high-speed networks. Investment in digital infrastructure, despite ongoing studies—some of which may be incomplete or lacking in depth—remains insufficient to achieve full, high-quality coverage nationwide.

In terms of internet speed, users in the United States benefit from significantly faster and more stable connections. The average fixed internet speed in the U.S. exceeds 150 Mbps, facilitating seamless access to high-definition streaming, video conferencing, and cloud-based applications. In contrast, although Mexico has seen improvements in recent years, the average internet speed remains around 50 Mbps, limiting users' ability to leverage advanced technologies—especially in sectors requiring high data transfer capacity. In 2024, investment in Mexico’s telecommunications infrastructure increased by 21.1% in real terms, even as the Latin American and Caribbean region saw a decline of 16.4% during the same period. While this increase reflects efforts to enhance connectivity, much more needs to be done. As a result, network capacity and performance remain constrained at local, regional, state, and national levels, particularly in terms of AI adoption.

Another critical factor is energy infrastructure. In the United States, the power grid is more robust and better equipped to meet growing energy demands, driven in part by the expansion of digital technologies and the rise of electric vehicles. Moreover, the U.S. has made substantial investments in renewable energy sources such as solar and wind, as well as in the development of "smart grids" that enable more efficient and sustainable energy management. In Mexico, however, progress in renewable energy adoption has been slow, and the country continues to rely heavily on fossil fuels for its energy supply. Combined with issues related to the stability of the electricity grid—especially in rural and industrial areas—these factors limit the expansion of digital infrastructure, reducing Mexico’s ability to integrate cutting-edge technologies, particularly in the field of AI.

In conclusion, addressing these challenges requires not only nice further studies but also the implementation of concrete actions, as emphasized by Admexus experts. While Mexico has made significant strides in digitalization and the expansion of its telecommunications infrastructure, the gap with the United States remains substantial. Disparities in high-speed internet access, network coverage, connection speed, and energy stability continue to hinder the country’s progress. However, with increased investment in digital infrastructure, strategic public policies focused on digital inclusion, and a shift toward more sustainable energy sources, Mexico has the potential to close part of this gap in the coming years. These efforts would pave the way for more effective and tangible economic growth within a high-performance and competitive market.

By Divirtualigente Rebels… Wanted!