DIGITAL TRANSFORMATION

INTELLIGENT TECHNOLOGY

The 2026 ISG Provider Lens Digital Business Innovation Services report for Brazil finds that organizations are aligning transformation strategies with national priorities as government programs promote large-scale digitization and AI adoption. The new Brazil Industrial Policy aims to digitize most domestic industries, while the Brazilian Artificial Intelligence Plan is directing significant investment toward expanding AI capabilities and positioning the country as a leader in sustainable and inclusive AI development.

“ Brazilian digital agendas are now defined by ambition and fiscally responsible execution,” said Shafqat Azim, partner at ISG.“ Enterprises are pursuing initiatives that can withstand budget scrutiny while still advancing strategic capabilities, which is forcing a more disciplined approach to AI adoption.”

Brazilian enterprises are focusing on scaling AI use cases that produce quantifiable returns following an earlier phase of experimentation that yielded mixed outcomes. As in other markets, IT departments are increasing spending on AI initiatives, which now account for a significant share of budget growth, while applying stricter evaluation criteria to ensure projects deliver measurable improvements.

This approach reflects a broader emphasis on selecting fewer, higherimpact initiatives that advance strategic objectives and improve operational resilience. Companies are prioritizing investments that can demonstrate clear business value within shorter timeframes while also supporting longer-term modernization goals.

Modernizing data environments is a key part of enterprise programs to effectively deploy AI at scale. Many companies in Brazil are unifying fragmented data across disconnected systems by investing in integrated architectures that improve data quality, accessibility and governance. These efforts enable more accurate insights through advanced analytics, allowing enterprises to improve decisionmaking, operational performance and customer engagement.

Enterprises in Brazil are also redesigning workflows and customer interactions to create more consistent and personalized experiences across channels. They are using AI and automation to better understand customer behavior, anticipate demand and streamline processes across front- and back-office functions. In sectors such as banking, this shift has already led to structural changes, including the closure of thousands of physical branches as digital channels become the primary mode of engagement, ISG says.

“ The enterprises that succeed in Brazil will be those that treat AI as part of a broader operating model shift rather than a standalone technology initiative,” said Adriana Frantz, lead author of the report.“ Service providers are updating their offerings to support this approach, expanding consulting and strategy services to help clients define priorities and identify promising use cases.”

ISG said Brazilian enterprises are increasingly seeking partners capable of supporting end-to-end transformation programs that combine cloud modernization, AI integration, cybersecurity, automation and data management. Providers that can demonstrate expertise and measurable outcomes are expected to gain traction as enterprises refine investment priorities. The report also notes that demand for advisory services is growing as organizations seek guidance on governance, compliance and AI deployment strategies across business environments. • www. intelligentcio. com

INTELLIGENT CIO LATAM

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