Mexico must get on board with AI or lose nearshoring benefits, experts warn at EFE's forum

CHIHUAHUA, Mexico, Oct. 15, 2024 /PRNewswire/ -- If Mexico fails to embrace innovation through artificial intelligence (AI), it risks losing its appeal for company relocations, or "nearshoring," as well as its advantage of being next to the world's largest market and its main trading partner, the United States, warned business leaders and academics during the EFE Economic Forum, "Challenges and Opportunities of AI,"

It held in Chihuahua, northern Mexico, supported by Economic Development of the State of Chihuahua (DESEC), and Sergio Mendoza, president of the business initiative Chihuahua Futura, stressed that the recent wave of AI-driven innovation must be seized by Mexico to avoid losing competitiveness.

Armando Viteri, CEO of Neubloc and AI specialist, added that the time to act is now, and companies cannot afford to wait, not even for five years. In his view, delaying the implementation of generative AI in industries will cause Mexico to lose its appeal as a nearshoring destination and could jeopardize its ability to remain the U.S.'s top trading partner.

Viteri argued that AI presents a massive opportunity for Mexican companies, with the potential to boost productivity by up to 40% and, in some cases, by as much as 1,000%. "The danger for Mexico is serious because the U.S. is obviously trying to scale back its relations with China. The biggest beneficiary of that shift is Mexico, which is now the top exporter to the U.S. But imagine if U.S. companies adopt this technology, and U.S.companies become 40% more productive, with 40% higher revenues—the difference between manufacturing in Mexico and the U.S. disappears. If Mexico doesn't follow a path to adopt AI immediately, the reasons for nearshoring vanish, and all the factories or businesses move back to the U.S.," he warned.

Meanwhile, Homero Gutiérrez, head of the Transformative Culture program and rector of Tec Milenio University, emphasized the challenge of developing specialized talent in disruptive technologies by accelerating educational programs that meet current needs.

While AI development and implementation in industries and companies are essential, it's also crucial to focus on "how we teach or train talent to identify where AI can be applied." "In terms of AI, today universities face the challenge of integrating artificial intelligence into teaching models," he added.

 

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SOURCE EFE