GenAI Cracks Brazilian Market with Productivity Promise

Many enterprises in Brazil have overcome major concerns about generative AI and are using it to boost their productivity, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens Generative AI Services report for Brazil finds that the rise of GenAI in 2022 and 2023 was initially greeted with fear, skepticism and organizational bans. Since then, companies have seen how problems such as hallucinations, data leaks, copyright violations and unpredictable costs can be solved.

“GenAI use cases in Brazil have delivered extraordinary results,” said Steve Hall, president and chief AI officer of ISG. “Service providers have largely removed barriers to adoption, and GenAI is poised to make enterprises more competitive.”

Companies in Brazil are implementing many applications that use GenAI’s ability to “learn” from vast amounts of structured and unstructured data, including text, images and audio, ISG says. In addition to summarizing content and answering questions about data, GenAI can build databases and generate analyses, which can include graphs and maps. One of the most valuable applications GenAI has opened up is personalized, automated customer service, which is replacing older service bots.

The technology is also changing how companies in Brazil carry out software development, the report says. It can translate legacy programming languages into modern ones, facilitating the migration of applications into cloud environments. GenAI also automates parts of the development cycle, such as generating test documentation and identifying bugs, leading to significant productivity gains.

Brazilian companies are investing in development and deployment services to minimize the challenges of rolling out GenAI, ISG says. For example, providers are helping large enterprises concerned about data breaches, hallucinations, biases and inappropriate material to implement control procedures. Many midsize companies that lack the data maturity to develop customized solutions are adopting preconfigured solutions as quick and efficient entry points to GenAI adoption.

Growing acceptance of GenAI in Brazil has also increased demand for strategy and consulting services that help enterprises integrate it into their organizations, the report says. Providers are helping large organizations identify the business problem at hand, assess the viability of GenAI as a solution and define an implementation strategy. Many midsize companies, such as law firms, are turning to providers for expert guidance in organizing and preparing their data for use with GenAI.