Artificial intelligence in Mexico: how to think digital capabilities and industrial policy in a turbulent geopolitical scenario

Mónica Casalet and Federico Stezano

Chapter 6 in Building Digital Technological Capabilities, 2025, pp 141-166 from Edward Elgar Publishing

Abstract: This chapter examines the critical factors shaping the development of digital technological capabilities in Mexico amidst the rise of Industry 4.0 and artificial intelligence (AI). It highlights the challenges of integrating these technologies into the country's industrial landscape, focusing on the need for enhanced education, skill development, and coordinated public-private sector efforts. The chapter discusses the global impact of Industry 4.0, driven by digital technologies like AI and Big Data, on production networks and value chains. Furthermore, it explores how geopolitical uncertainties, such as the COVID-19 pandemic and technological competition between the US and China, have influenced industrial policy. Mexico's industrial future depends on strategic governance interventions, leveraging local clusters, and adapting to global trends like nearshoring. The authors advocate for a national digital strategy that includes fostering innovation through academic-industry collaboration and preparing for future technological demands. The chapter concludes by underscoring the importance of crafting a robust industrial policy agenda tailored to Mexico's evolving technological landscape.

Keywords: Industry 4.0; Artificial Intelligence; Digital Transformation; Industrial Policy; Innovation; Nearshoring (search for similar items in EconPapers)
Date: 2025
ISBN: 9781803922355
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