42% of Brazilian Companies Struggle with Technological Change

by Marcus Liu - Business Editor
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The speed of technological change presents companies with growing challenges. In Brazil, 42% of executives say they are struggling to keep up with the pace of disruption and 53% say they don’t know how their industries will evolve in the next three to five years. This data comes from the second edition of the global Innovation Catalyst study, conducted by Dell Technologies in collaboration with Vanson Bourne, which surveyed 2,850 executives in 40 countries.

According to 94% of Brazilian executives, generative AI (artificial intelligence) will fundamentally transform their industries – an increase of 4 percentage points compared to the 88% in the 2024 study. Though, all companies agree that their teams need to develop skills to realize the full potential of this technology.

A lack of knowledge also proves to be the biggest hurdle when implementing AI projects. Of the 92% of respondents who say they face barriers to implementing these projects, 44% cite a lack of team knowledge as the main issue, followed by data security (37%) and difficulty keeping up with rapid technological change (37%).

Main barriers to the adoption of AI and generative AI projects.

Generative AI Adoption accelerates in Brazil, driven by ROI and Sustainability Concerns: Dell Technologies Study

A recent study by Dell Technologies reveals a significant surge in the adoption of generative AI within Brazilian companies, coupled with growing attention to infrastructure challenges and sustainability.The findings indicate that businesses are not only embracing the technology but also recognizing the need for robust data management and environmentally conscious practices.

Growing Implementation and ROI

The study demonstrates ample progress in generative AI implementation: 22% of Brazilian companies are now in a mature implementation phase,a notable increase from just 12% in 2024. A significant 88% of respondents report achieving substantial gains in both return on investment (ROI) and productivity through the use of generative AI. https://www.dell.com/

AI as a Key investment Priority

Looking ahead to 2025, integrating AI and generative AI into core business strategies remains a top IT investment for 62% of companies surveyed. This priority is second only to cyber threat detection and response initiatives, which were cited by 67% of organizations.https://www.dell.com/

Infrastructure and Data Challenges Remain

Despite the enthusiasm, companies are facing hurdles related to infrastructure and data. A vast majority (96%) plan to increase their data storage capacity this year to accommodate the demands of generative AI. However,this expansion is intricate by concerns over rising costs (47%),data security and privacy (46%),and the complexities of managing escalating data volumes (41%).

The study highlights significant difficulties in data planning for AI projects,with 97% of companies reporting challenges in identifying,preparing,and appropriately utilizing data.Specifically, 50% struggle to integrate AI/generative AI systems with existing IT infrastructure and data platforms. Additional obstacles include ensuring data security and privacy (43%), a shortage of internal data science and AI expertise (37%), and the need to cleanse and pre-process large volumes of incomplete data (36%).

“With AI representing one of the pillars of innovation, companies must invest in modern, scalable and lasting infrastructures,” stated Diego Puerta, President of Dell Technologies Brazil. “Without a solid technological foundation and adequate data management, it will be impossible to keep up with rapid change and remain competitive in the market.” https://www.dell.com/

Sustainability Takes Center Stage

The increasing energy consumption associated with AI technologies is driving a growing focus on sustainability. The study reveals that 97% of Brazilian companies view AI as a critical tool for optimizing resource utilization and enhancing the sustainability of their operations.Furthermore, 95% agree that improving data center energy efficiency is essential for achieving environmental goals and commitments.

A substantial 94% of Brazilian organizations are actively implementing measures to address the increasing energy demands of generative AI systems,and 81% express concerns about the environmental impact of the technology.

Puerta emphasized the evolving importance of sustainability, stating, “It has become a necessity and must be integrated into any innovation strategy. Given the advances in generative AI and its impact on increasing energy consumption in data centers, companies must prioritize environmentally efficient technologies that simultaneously enable them to realize the full potential of AI to drive innovation and keep pace with market changes.” https://www.dell.com/

Note: While the provided text references a Dell Technologies study, a direct link to the study itself was not available.Therefore, links to the Dell Technologies homepage have been included as the source for the information presented. If a specific study report becomes available, the links should be updated accordingly.

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