Economy Politics Local 2026-03-09T22:13:31+00:00

Citi Report Highlights AI's Role in Supply Chain Optimization

Latin America solidifies its role as a key player in global supply chains. A new Citi report shows how the integration of AI and blockchain boosts trade efficiency and resilience in the region, along with a 12% increase in foreign direct investment in 2025.


Citi Report Highlights AI's Role in Supply Chain Optimization

In Latin America, 44% of companies state that relocation improves proximity to the end consumer, the highest figure recorded globally. Steve Donovan, Head of Services for Latin America at Citi, reaffirmed that the region is no longer a peripheral actor, but a vital destination for international markets. Latin America is consolidating as a driver of global supply chains. The integration of artificial intelligence and blockchain is transforming trade financing, allowing regional supply chains to become more efficient and resilient. Pablo del Valle, CEO of Citi for Central America and the Caribbean, pointed out that the integration of AI enables the creation of smarter supply chains and a capital optimization that grants decisive competitive advantages. The ability to adapt to tariff volatility and the strategic focus on diversification have allowed local companies not only to withstand changes in global policy but also to lead the transition to a regionalized and multipolar trade model. According to the Citi report, Foreign Direct Investment in Latin America and the Caribbean grew by 12% in the first half of 2025, defying the negative trend in developed economies. The Citi study highlights how artificial intelligence (AI) is redefining the core of commercial financing. According to the latest edition of Citi's Global Outlook and Solutions (Citi GPS) report, "Supply Chain Financing – Durable Global Trade in the AI Era," the region experienced an 82% growth in its trade flows to South Asia and ASEAN between 2019 and 2024. This dynamism responds to the vital role of the region as a provider of critical minerals for the Asian electronics industry. In parallel, exports to North America increased by 43%, driven by the strategy of US companies to diversify their supply sources away from China. This technological evolution is fundamental to sustaining the supercycle of investment in AI-related data centers, whose global capital expenditure is estimated to reach $775 billion by the year 2030. Trends in relocation and diversification. The survey of 710 large corporations indicates that 65% are actively diversifying their logistics networks. Adoniro Cestari, Global Head of Trade and Working Capital at Citi, explained that the intelligent processing of documents using AI reduces execution times to a few minutes and increases accuracy to maximum levels. Likewise, Citi has implemented pilots for blockchain-based commercial payments, achieving transitions from paper guarantees to automated digital executions with 24/7 operability.

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