The AI Landscape in Brazil: Opportunities and Challenges Ahead

June 19, 2025, 12:30 pm
TOTVS
TOTVS
CloudComputerEnterpriseHardwarePlanningProviderSoftwareTechnology
Location: Brazil, Southeast, Jundiaí
Employees: 10001+
Founded date: 1983
Brazil stands at a crossroads in the realm of artificial intelligence (AI). A recent study by TOTVS reveals that half of Brazilian companies have yet to embrace AI in a structured manner. This statistic paints a picture of untapped potential, akin to a vast field waiting for the right seeds to be sown. The landscape is ripe for transformation, but the journey is just beginning.

The study, conducted by h2r insights & trends, surveyed 194 companies across various sectors. It found that 50% of these organizations are not utilizing AI in any organized way. This is a wake-up call. The integration of AI could revolutionize operations, reduce errors, and enhance decision-making. Yet, many companies remain on the sidelines, hesitant to dive into the deep end.

Among those already employing AI, the majority—58%—are in the early stages of implementation. Only 8% consider their use of AI advanced. This suggests a slow adoption curve, where companies are still testing the waters rather than swimming confidently. The primary applications of AI are in content production, with 33% of companies using it for text generation, summaries, and presentations. Visual content creation follows closely at 29%. Cybersecurity applications come in third, with 21% of companies utilizing AI to identify suspicious behaviors.

Conversational AI tools like ChatGPT and Claude are gaining traction, with 40% of companies reporting their use. This highlights the accessibility of these platforms, serving as a gateway for businesses exploring AI. However, the study also reveals a concerning trend: only 17% of companies are using customized AI solutions tailored to their core business needs. Most companies are leveraging AI for isolated tasks rather than integrating it into their central operations.

The perception of AI's value is another hurdle. Only 20% of companies view their AI usage as strategic. A staggering 42% believe it is misaligned with corporate objectives. This disconnect suggests that many organizations are not fully grasping the potential of AI. A mere 7% calculate the return on investment (ROI) from their AI initiatives, which stifles growth and innovation.

The impacts of AI are tangible. About 37% of companies report a medium to high impact on daily operations, primarily through task optimization and faster decision-making. However, larger-scale benefits like cost reduction and revenue growth are still elusive for many. This indicates that while companies are beginning to integrate AI, they have a long way to go before realizing its full potential.

Barriers to adoption are significant. The study identifies several key obstacles: AI is not seen as a priority for 44% of companies, while 36% express concerns about security. A lack of technical knowledge and high implementation costs are also major deterrents. Furthermore, 24% of employees resist change, complicating the integration process. These challenges hinder competitiveness in a rapidly evolving business environment.

Despite these barriers, interest in AI remains high. A whopping 83% of companies are keen on using AI for performance analytics, while 70% want to consolidate information from various systems. This enthusiasm signals a desire for transformation, but the path forward is fraught with challenges.

The emergence of AI agents—autonomous systems that can perform tasks and adapt to business contexts—offers a glimpse of the future. Nearly half of Brazilian companies are familiar with AI agents, yet practical usage remains low. For instance, while 55% know about text-generating agents, only 8% use them. This gap between awareness and application underscores the need for education and support in the AI space.

The study also highlights the importance of infrastructure. Companies must ensure their management systems are up to date and that they have the necessary cloud technologies in place. Quality data is crucial, as AI relies on accurate information to generate value. Without a solid foundation, the promise of AI remains just that—a promise.

In a parallel development, companies like RD Station are betting on AI to enhance their products, particularly for smaller businesses. The integration of AI into their offerings aims to make advanced tools accessible to companies with limited resources. This democratization of technology could level the playing field, allowing smaller players to compete with larger firms.

The journey toward AI integration is not just about technology; it’s about mindset. Companies must shift their perception of AI from a luxury to a necessity. The potential for growth is immense, but it requires a commitment to understanding and leveraging AI effectively.

In conclusion, Brazil's AI landscape is a mix of promise and challenge. While many companies are still hesitant, the potential for transformation is undeniable. As organizations begin to embrace AI, they must navigate the obstacles ahead. The future is bright for those willing to adapt and innovate. The seeds of change are being planted; it’s time for Brazilian companies to cultivate them into a flourishing reality.