With a young population, robust domestic market and strong affinity for technology, Brazil appears poised to lead the region’s digital future. Brazilians rank second globally in daily internet use, underscoring how deeply digital platforms are embedded into everyday life.

But when it comes to translating that potential into widespread, inclusive digital prosperity, Brazil remains a paradox. The same economy that has produced global success stories in fintech and e-commerce continues to struggle with systemic weaknesses that limit the scale, accessibility and sustainability of digitalisation.

On one hand, Brazil leads Latin America in digital adoption. It boasts a digitally savvy population, booming start-up ecosystem and robust digital banking infrastructure. On the other hand, the country grapples with persistent educational inequality, with students from the wealthiest 20 percent of households roughly twice as likely to complete secondary education than those from the poorest 20 percent.

This tension characterises much of Brazil’s digital journey. As AI accelerates workforce transformation, can digital and AI talent become Brazil’s engine for growth? Or will systemic bottlenecks continue to hold the country back?

Brazil’s key challenges and advantages

Despite its economic weight and demographic strength, Brazil consistently underperforms in global talent indices. In the Global Talent Competitiveness Index (GTCI), for instance, the country has hovered in the middle tiers for over a decade. It typically scores poorly in areas such as vocational and technical skills, ease of attracting global talent and employee development opportunities.

Its performance is strongly linked to structural barriers including educational inequality and the fact that much of Brazil’s labour force operates in the informal sector. This limits access to formal upskilling, structured career paths and employer-sponsored training. Moreover, limited alignment between employers, universities and government agencies results in mismatched skills and poorly structured talent pipelines.

The cumulative impact is stagnation. Brazil has not shown significant improvement in international rankings nor in domestic assessments of talent readiness. In the context of AI disruption – where agility, adaptability and continuous learning are key – this is a major risk.

What’s more, digital opportunity is not evenly distributed. LinkedIn Talent Insights data (which covers around two-thirds of Brazil's workforce) reveals that hiring demand in digital and AI-related roles remains heavily concentrated in major metropolitan regions. For instance, Greater São Paulo alone accounts for over 540,000 AI and digital professionals, dwarfing other regions.

This comes at a cost – opportunities outside major hubs remain scarce, meaning that graduates in these areas face steep challenges in breaking into national technology ecosystems. And while universities have expanded their offerings to meet the growing demand for AI, data science and digital skills, the quality and depth of these courses vary widely. There are also concerns around the alignment of curricula with real-world demands.

What Brazil has going for it are its digitally fluent population and digital ecosystems. As of 2024, over 85 percent of Brazilians use the internet regularly, with a majority – including those in low-income communities – accessing the internet via smartphones. Data from LinkedIn Talent Insights shows that Brazil leads Latin America in generative AI (GenAI) adoption, with over 110,000 professionals listing GenAI skills on their LinkedIn profiles – more than three times that of Mexico and five times that of Argentina.

The country also stands out as Latin America’s fintech leader. Pix, the Central Bank’s real-time payments system, has seen exponential adoption. It’s notched over 140 million users within a few years, suggesting the population’s strong trust in digital systems. Fintech platforms like Nubank and PicPay have built massive user bases with their inclusive, intuitive products, proving that Brazilians readily embrace digital services when they solve real problems. And according to LinkedIn Talent Insights data, there are nearly 1 million fintech professionals in Brazil, more than four times the size of Mexico’s fintech ecosystem.

How to avoid being left behind

Brazil’s digitally fluent consumer base forms a powerful springboard for leapfrogging the competition. But this can only happen alongside effective upskilling initiatives, clear employment pathways and governance frameworks that ensure access and inclusion for all. 

At this stage, three priorities are indispensable:

1. Reform curricula across educational tiers

Why it matters: Brazil’s workforce demands are evolving faster than its education system can adapt, and it must urgently reform STEM (science, technology, engineering and mathematics) and AI curricula. A robust STEM foundation nurtures critical and computational thinking – essential skills for AI readiness. It’s also been shown to be crucial for scientific literacy, economic growth, innovation and competitiveness globally. Take India, which has leveraged coding in schools and industry-aligned boot camps to rapidly scale digital talent.

Possible next steps: Embed AI, coding, robotics and data analytics into high school and vocational curricula, and update content annually with industry input. Provide teachers with training in digital tools, backed by publicly shared pedagogical frameworks.

2. Expand digital education in underserved regions

Why it matters: Connectivity disparities compound educational disparities. Initiatives like Programa Internet Para Todos, which delivers satellite-backed broadband to remote and underserved communities, have expanded connectivity across hundreds of municipalities. But despite significant improvements in internet access, digital inequity remains entrenched and rural and low-income regions still suffer from poor infrastructure and affordability gaps. 

Possible next steps: Pair infrastructure expansion with an inclusive access model. Scale community initiatives that combine broadband access with digital literacy training. Incentivise internet service providers with tax benefits to expand fibre and mobile broadband in low-connectivity zones.

3. Incentivise apprenticeships and private-public skilling pathways

Why it matters: Fresh university graduates may not possess the hard skills required by the job market. Apprenticeships bridge this gap by creating robust education-employment linkages. For instance, Germany’s apprenticeship model integrates public, private and trade institution partners, creating highly skilled, job-ready graduates. It combines company-based paid apprenticeships with classroom learning, contributing to low youth unemployment and high workforce alignment.

Possible next steps: Introduce tax credits or subsidies for companies that offer AI-focused apprenticeships. Establish “AI fellows” programmes that blend classroom learning with hands-on experience. Pilot in sectors with growth potential (such as fintech and agritech) and gradually scale as models prove effective.

What the future could hold

While the ideas we present may be speculative, they underscore an important point: Brazil can have all the ingredients for success in the AI age, but transforming these into sustained competitive advantage demands more than momentum. It requires deliberate, coordinated and intelligence-driven action across government, industry and academia.

Leapfrogging isn’t a matter of waiting for opportunity to strike – it’s a disciplined strategy that combines speed with direction. Brazil’s advantage lies in outpacing traditional innovation cycles, adopting and adapting cutting-edge technologies before slower-moving economies can catch up. Yet, this window of opportunity is narrow, and history shows that such windows do not remain open for long.

The next few years will decide whether Brazil cements its leadership in this area or falls behind. If it can bridge its divides, it has the potential to lead Latin America into the next era of digital innovation and become a global reference point for inclusive AI-driven growth. The choice is clear: Either the country mobilises its talent, capital and political will now, or it risks watching the AI revolution reshape the world from the sidelines.