Artificial intelligence as a new geopolitical battleground
Artificial intelligence is no longer merely a technological tool. It has become a central source of global power. Those who control algorithms, data and computing infrastructure will exercise considerable influence over the economy, politics and culture of the 21st century.
Today, this competition is unfolding among several distinct approaches. The model represented by major corporations from the Global North concentrates patents and capital. Meanwhile, China's model promotes a "digital silk road" based on South-South cooperation and the principle of placing "people at the center of all initiatives." The European Union's pioneering risk-based approach means that the greater the social risks associated with an AI system, the stricter the applicable rules.
In various international forums, Latin America and the Caribbean have called for more inclusive AI governance, technology transfer and equitable access to digital infrastructure, as well as respect for data sovereignty.
However, some countries are testing the most radical model: artificial intelligence without regulation, meaningful human oversight or the involvement of the state.
The central question is whether Latin America and the Caribbean can transform AI into a sovereign instrument or if the region will merely consume models designed elsewhere.
Visitors experience a brain-computer interface at the World Artificial Intelligence Conference 2026 in Shanghai, China, on July 17, 2026. /VCG
The northern monopoly: When artificial intelligence has an owner
At present, 80% of the global computing capacity used to train AI models is reportedly controlled by five US-based companies. Google, Microsoft, Meta, Amazon and OpenAI largely determine the rules, prices and conditions of access. This oligopoly rests on three pillars: infrastructure, data and capital. The result is a new form of dependency.
In Latin America, these companies have concentrated much of their investment on the construction of data centers designed to store and process regional information. Through near-shoring, major US corporations have also relocated hardware production to Mexico. At the same time, Latin America and the Caribbean have become an important source of remotely employed talent in software development, data science and cybersecurity.
Latin America: Between the digital divide and regional potential
The region possesses three important competitive advantages: critical resources such as lithium and copper, highly qualified professionals trained in public universities, and specific local challenges that AI systems developed in the Global North neither adequately address nor necessarily intend to resolve.
The principal obstacle, however, is fragmentation. Each Latin American and Caribbean country negotiates independently. The region lacks a shared strategy, interoperable data systems and joint financing mechanisms.
Visitors view the Huawei Ascend 950 super node at the World Artificial Intelligence Conference 2026 in Shanghai, China, on July 17, 2026. /VCG
Can sovereignty be achieved without changing the development model?
Artificial intelligence will help determine who exercises power in the coming decades. China offers a model of cooperation based on placing people at the center. The Global North offers concentrated and proprietary capital. Argentina offers a largely unregulated market.
The question is whether an effective AI policy can be developed without transforming the political and economic model of Latin America and the Caribbean.
As long as extractive economic structures and weak state institutions prevail, artificial intelligence will remain largely cosmetic. A meaningful transformation requires state planning, public investment and regional integration. The region also needs a system of digital tax justice. This should include taxes on major technology corporations and levies on platforms that monetize the data of Latin American users.
The present century is increasingly characterized by flexible alliances, pragmatism and greater agency for the Global South. In this context, Latin America and the Caribbean face the challenge of building genuine digital sovereignty. Initiatives such as the project led by Santiago, Chile, together with long-term state policies, offer a possible path forward.
The time to begin constructing this future has already arrived.