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How Artificial Intelligence Is Transforming Infrastructure in Latin America and the Caribbean

October 2, 2025 by Alexander Riobo - Maria Pfeifer Leave a Comment


The critical infrastructure sectors in Latin America and the Caribbean (LAC) face growing challenges that threaten their efficiency and sustainability. Roads, power grids, water systems and public transportation networks show signs of aging and obsolescence, increasing maintenance costs and reducing the quality of services.

Against this backdrop, the Inter-American Development Bank (IDB) is exploring how artificial intelligence (AI) can be applied to infrastructure. For example, in public transportation, route optimization algorithms are helping reduce travel times and congestion. In water and sanitation, predictive models make it possible to detect leaks and anticipate outages in distribution networks. In energy, AI is used to forecast demand and facilitate the integration of renewable energy at scale.

These advances and lessons are covered in the IDB’s publication “AI from the Ground Up: Challenges and Opportunities in the context of Latin America and the Caribbean”, which presents real-world cases, recommendations, and practical guidelines on how AI can become a key tool to strengthen the region’s critical infrastructure.

Challenges for Our Infrastructure

Infrastructure in the region faces challenges such as aging physical structures, accelerated urbanization, population growth, and the impact of climate events. The consequences include disruptions in essential services and rising costs of use, which lead to unequal access.

However, technology can help reverse these trends. IDB estimates suggest that a 15% reduction in infrastructure service costs through the efficient use of digital technologies could increase the GDP of Latin America and the Caribbean by 6% over the next 10 years.

How AI Can Make a Difference in Infrastructure

Although more than 40% of public agencies in transportation and energy in LAC lack a clear digital transformation strategy, any entity can implement AI-based projects. In critical infrastructure sectors, the implementation of machine learning models is already within reach for many governments and organizations.

Some concrete examples show this potential in the region across three areas:

  • Energy: AI systems predict consumption patterns and help balance supply and demand, facilitating the integration of intermittent renewable energies such as solar and wind.
  • Water and sanitation: Predictive models supported by smart sensors allow detection of invisible leaks and anticipation of pipe ruptures, reducing water losses and maintenance costs.
  • Transportation: Traffic optimization algorithms help reduce congestion and improve route efficiency in urban public transport.

Effective AI Adoption

The report offers the following recommendations to unlock AI’s potential in critical infrastructure sectors:

  • Adopt agile methodologies that include proof of concepts, prototypes, and minimum viable products. These tools make it possible to experiment with AI-based solutions before scaling them.
  • Establish organizational structures that drive AI adoption, ensuring that teams have the necessary technical skills.
  • Data quality determines the success of AI projects. Building high-quality data requires identifying sources, designing efficient data flows, and ensuring adequate architectures for storage and processing.
  • Evaluate infrastructure requirements from the outset, especially storage and computing capacities needed for AI models.
  • Ensure that AI models address specific and measurable problems, based on data quality, computing capacity, explainability, and performance.
  • Incorporate ethical principles from the design stage, addressing privacy, security, and transparency to build trust in solutions.

AI as a Driver of Development

We invite you to explore these recommendations in detail in “AI from the Ground Up: Challenges and Opportunities in the context of Latin America and the Caribbean.”


Filed Under: Infraestructura, Innovación y sistemas inteligentes de transporte, Transformación Digital, Transporte Tagged With: infraestructura, Transporte Latinoamérica

Alexander Riobo

Alexander Riobó es Especialista Sr. en Infraestructura del Banco Interamericano de Desarrollo (BID), donde promueve el uso de tecnologías exponenciales e innovación en operaciones de inversión y asistencia técnica para los países de América Latina y el Caribe. Alexander trae al equipo de Infraestructura del BID una amplia y exitosa carrera de más de 25 años en la industria de TICs, tanto en los sectores público y privado, con énfasis en políticas públicas, regulación y despliegue de infraestructura en América Latina. Su útlimo cargo antes de entrar al BID en 2018, fue el de Director para America Latina de Asuntos Regulatorios y Políticas Públicas en el Grupo Telefónica. Alexander es Ingeniero Electrónico de la Universidad Javeriana en Colombia, donde también cursó estudios de Matemáticas Puras; posee una Maestría en Tecnología e Innovación del Science Policy Research Unit (SPRU) en la Universidad de Sussex en el Reino Unido; y estudios de Dirección Empresarial de la escuela de negocios INALDE en Colombia. Fue miembro de los Consejos de Dirección de las asociaciones de industria 5G Américas en USA y ASIET en España.

Maria Pfeifer

María Angélica Pfeifer es especialistas en temas innovación tecnológica, ha sido consultora de Transformación Digital en el Banco Interamericano de Desarrollo (BID), donde gestionó programas para los países de América Latina y el Caribe en las áreas de Transporte, Energía, y Agua y Sanidad. Antes de colaborar en el BID, María Angélica trabajó como consultora de gestión de la transformación y tecnologías de información por 18 años y fue socia en Azurian Consulting. Es ingeniera industrial de la Universidad de los Andes y cuenta con un título en Alta Gerencia de la misma universidad.

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Desde BID Transporte mejoramos vidas en América Latina y el Caribe promoviendo una movilidad más eficiente, accesible y segura.

Descubre nuestro espacio de intercambio de ideas y conocimiento y forma parte de él. Desde Moviliblog, queremos compartir lo último en movilidad y transporte en América Latina y el Caribe e invitarlos a conocer nuestras áreas temáticas: ITS, seguridad vial, grandes proyectos, logística y transporte urbano, así como nuestras temáticas transversales de evaluación de impacto, género y transporte sostenible.

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