FROM PILLAR TO POST exacerbate income inequalities . Four factors are suggested to explain this phenomenon : the uneven diffusion of information and communication technologies , the affordability of these technologies for low-income citizens , the potential for Smart Cities to further divide human capital , and the involvement of private actors in project implementation . On this last issue , the BBVA bank noted in a 2021 report that one of the main disadvantages of Smart Cities is that ‘ there is a dependence on technology service companies ’, which often do not develop infrastructure in the region and only maintain commercial offices .
LATAM presents specific challenges in terms of the infrastructure required to support Smart Cities . Some challenges are well-known , such as improving access to technology and increasing investment . Others are now gaining more attention , such as the need for human capital , coordination among stakeholders , information exchange , and suitable institutions . The region is reaching technological maturity , evident from the data : the tech industry in LATAM grew by 5.6 % in 2022 , reaching a total value of US $ 517 billion . LATAM also has the highest rate of entrepreneurship in the world , according to the Global Entrepreneurship Monitor , with venture capital investment surpassing US $ 5 billion . Some countries in the region have seen record levels of foreign direct investment , with Brazil receiving US $ 92 billion in 2022 . Several LATAM startups have achieved unicorn status . To develop Smart Cities in LATAM , a large population of educated citizens is essential . The International Development Bank ( IDB ) estimated in a report that closing the digital gap would create over 15 million direct jobs in the region , boosting economic growth by 7.7 %.
The adoption of AI could be a game-changer in accelerating development . The impact of AI does not solely depend on technology ; it primarily depends on how technology is adopted . Take education , for instance , as we already emphasised the importance of human capital and educated citizens . Strong results show the impact of tutors in early education . Children with access to tutors exhibit impressive improvements in learning results , in particular in math . Finding tutors is in general very challenging and especially in LATAM . Therefore , innovative ways to adopt AI in education could bridge the gap for many students .
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