Can you imagine a future where Mexican industry grows by leaps and bounds? A future where a magic formula of innovation and technology will be the key to accelerating the growth of sectors and leading to an unprecedented economic boom?
It sounds unreal, and at CIAL we do not believe in formulas or miracle cures. However, it is undeniable that we are facing a historic moment in which multiple factors beneficial to companies have manifested themselves almost simultaneously; and that, if taken advantage of, it can be potentially revolutionary for companies in Mexico and Latin America.
What are we talking about? The union of two unstoppable forces: the rise of phone number list artificial Intelligence (AI) and the global trend of Nearshoring.
Nearshoring, the practice of moving business operations to nearby countries, can greatly benefit from AI’s capabilities to optimize production and logistics processes. In the following article, we will explore how AI can be a helpful ally in empowering the nearshoring revolution, as well as the challenges facing its integration and its implications for employment and industries.
AI and Optimization in Nearshoring
The arrival of AI in the business world has meant an unprecedented technological revolution, impacting all phases of operational processes.
In nearshoring, AI has the potential to significantly improve production, supply have you ever wondered management, and quality control. For example, in the production phase, AI can speed up inventory review, predict consumer demand, and adjust production accordingly.
Furthermore, in logistics, AI can plan multiple variables, such as merchandise routes, material availability and machinery capacity, reducing bottlenecks and improving efficiency.
In the first half of 2023, Mexico continued to consolidate its position as the main dating data supplier of auto parts to the United States , increasing its share from 42% to 46% of total imports. This growth is a clear example of how nearshoring is strengthening Mexico’s position in the global market, and which can undoubtedly be enhanced by Artificial Intelligence.
Challenges in AI integration
Integrating AI into nearshoring operations is not without its challenges. Key challenges include:
• Lack of technological infrastructure,
• The shortage of professionals with mastery in machine learning and data analysis,
• High implementation costs.
Many companies fear the high investment that this change represents, although it is crucial to anticipate the great technological wave in order not to be left behind by the competition. In addition, the quality and availability of data are essential for the effective operation of AI systems. Companies must implement reliable and up-to-date data management strategies and platforms to take full advantage of AI capabilities.
Risk Mitigation with AI
AI-based technologies offer opportunities to optimize supplier analysis and evaluation, both local and global.
However, AI cannot do it alone, as it needs accurate and reliable data to perform 100% trustworthy and truthful analyses.
To strengthen AI-based analyses, there are tools such as CIAL360 Supplier that allow you to analyze multiple sources of information, evaluate supplier performance, identify potential risks, and protect the supply chain in real time.
With data sources from tools like CIAL360 Supplier, AI can improve operational efficiency and strengthen companies’ ability to cope with fluctuations in labor costs and dependence on local suppliers.
Impact on Employment and Skills
Contrary to initial concerns, AI’s impact on employment has been less dramatic. While automation can reduce the workload in some areas, rigorous quality control overseen by humans is always needed.
In regions that are becoming nearshoring hubs, such as Mexico, AI integration presents a great opportunity to develop digital and technological skills. Demand for skills in programming, machine learning, data analysis and cybersecurity is booming, which can attract foreign direct investment and foster economic development. Favorable government policies, tax incentives and an enabling regulatory environment are essential to maximize these benefits.