New Tech in Brazil: Rising Fast but Fading Faster?

Trends / Technology
FG Trade
Federico Roales
Sep 29, 2023
The technological landscape in Brazil is witnessing a surge in emerging tech. Businesses across various industries are eager to harness the power of technologies such as AI, IoT, blockchain, DeFi1 and incorporate them into their operations, products, and services. They have the potential not only to capture new market shares but also to assist in navigating through periods of low growth. This could be realized through increased operational efficiency or by reshaping the company's business model to embrace a more tech‑driven approach.

Brazil is positioned as a technological global hub2 to be watched during the next few years, especially considering the increasing digitalization as a consequence of the pandemic, as well as its status as the largest regional economy3. However, our recent VisualGPS consumer survey unveils a formidable challenge for companies: initial media hype drives brands' interest when they search for visual content, but consumer interest dropped quickly because the new technology did not provide users with the experiences they desire. In Brazil's evolving tech scene, businesses have now the opportunity to create meaningful visual experiences that align with consumer expectations to succeed in the dynamic market.
The gap between expectation and reality
With each new innovation launched to the market, Brazilians seem captivated by the promises of enhanced efficiency, improved user experiences, and novel ways of addressing complex challenges. This excitement is reflected in Getty Images’ most popular downloads: “metaverse” images have doubled in visibility during the last year, while visuals depicting cryptocurrencies have increased by 60%. Furthermore, searches such as “AI”, “smart home”, “cybersecurity” or “digital technology” continue to be on the rise.

Nevertheless, as technology matures and real‑world limitations come to light, a sense of disappointment spreads among consumers. According to our recent VisualGPS consumer survey, Brazilians' anxiety about the world's heavy reliance on technology has increased by 15% in just the last 9 months. Additionally, the most recent wave of our survey indicates that the number of Brazilians who believe crypto will replace traditional banking has dropped by 14% over the same period. Furthermore, consumer understanding of the metaverse has declined by 8%, and consumer understanding of virtual reality has decreased by 5%. Taken together, all of these decreases are quite significant.

A significant hurdle for the metaverse or virtual reality has been its inability to offer users the social interactions they seek. Many virtual worlds suffer from a lack of social cohesion, leaving users feeling isolated and disconnected from one another. Building virtual worlds can be both costly and time‑intensive, leading to the creation of poorly designed and less interactive environments. Technical issues such as lag and server crashes further hinder the UX, making it less enjoyable and more frustrating.
AI: an opportunity to pioneer a more precise path for tech's positive impact
In the ever‑evolving landscape of technology, Artificial Intelligence (AI) now emerges as a remarkable opportunity to shift the way we use technology in our daily lives. What do consumers want? Our VisualGPS consumer survey states that 3 out of 4 Brazilians think AI might help them be more productive, while just 15% of them think AI is really smarter than humans. The future is not solely about showcasing an innovation‑driven world. While brands may choose to focus on these new technologies in their narratives, there is still a degree of abstraction and disconnection that might not resonate authentically with what consumers currently desire in visuals. According to our consumer survey, 8 out of 10 Brazilians prefer to engage with brands that depict a lifestyle similar to theirs in advertising and communications.

When choosing visuals, keep it simple and portray emerging tech as an enhancer and facilitator of unique and inter‑connected experiences. Avoid scenarios that feel inauthentic, too futuristic, or dystopic with a blue tint. Try instead to incorporate AI assistants to real‑life scenarios using earthy tonal palettes that promote trust and a sense of easy adoption, while showing how tech may create a good impact on people's work, their homes, offices, and everyday places.
[1] "Inteligência artificial responde por mais de 20% das tecnologias emergentes em startups brasileiras, aponta estudo" (Coin Telegraph, 2023)
[2] "Why Brazil is becoming a global hub for tech investments" (BNAmericas, 2023)
[3] "Brazil is emerging as a world‑class AI innovation hub" (Venture Beat, 2020)

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