Feb28
Immersive technology—including augmented reality (AR), virtual reality (VR), and extended reality (XR)—is rapidly transforming industries across Latin America. From education to e-commerce, these innovations offer more engaging and personalized experiences. However, their widespread adoption also raises significant data privacy challenges, particularly in a region where regulation and investment in technology vary significantly.
Latin America has shown increasing interest in adopting immersive technologies. According to a NTT DATA and MIT Technology Review report, 56% of companies in the region have already implemented VR and AR solutions to enhance customer experiences (NTT DATA).
Furthermore, the Latin American VR market is projected to reach $721.69 million by 2034, with a 6.8% CAGR from 2025 to 2034 (Informes de Expertos).
Investment in digital transformation is also accelerating: 54.9% of Latin American companies now allocate up to 15% of their revenue to IT investments, surpassing the traditional 10% threshold (Telecom Review Americas).
These trends indicate a strong commitment to immersive technology adoption, but they also highlight the urgent need to address data privacy concerns.
Immersive technologies collect and process vast amounts of personal data, including biometric and behavioral information. This raises serious privacy concerns, especially in regions with weak or outdated regulations.
A notable case occurred in Chile, where the company Worldcoin collected iris biometric data from over 200,000 people in exchange for cryptocurrency. Many of them, in vulnerable economic situations, did not fully understand the terms and conditions, leading to regret and concerns about the use of their personal data (El País).
This incident highlights the urgent need for stronger digital literacy programs and robust regulatory frameworks to ensure user protection.
Data protection laws in Latin America are inconsistent. While countries like Brazil have adopted comprehensive laws such as the General Data Protection Law (LGPD), other nations still lack clear regulations.
The LGPD, modeled after the European Union’s GDPR, establishes "opt-in" clauses and clearly defines data processing conditions (ShowHeroes Group). However, the lack of regulatory harmonization across the region leaves gaps in enforcement and challenges in cross-border data protection.
To fully realize the potential of immersive technologies while safeguarding user privacy, Latin American countries must modernize their legal frameworks and align them with international standards.
Despite these challenges, investment in immersive technology continues to grow. Major global tech players are increasing their presence in Latin America, reinforcing the region’s importance in the global digital economy.
For example, Amazon Web Services (AWS) has announced a $5 billion investment to build a "digital city" in Querétaro, Mexico, offering cloud computing and data storage services (El País).
These large-scale investments demonstrate the region’s potential to lead immersive innovation, but they also underscore the critical need for clear privacy policies and data protection measures.
The expansion of immersive technology in Latin America presents unprecedented opportunities for innovation and economic development. However, ensuring that these technologies respect data privacy is crucial.
Governments, businesses, and civil society must collaborate to:
Establish robust legal frameworks
Promote digital literacy
Ensure data protection is a priority in the region’s tech agenda
Latin America is poised to become a global leader in immersive tech—provided that privacy and security remain at the forefront of its digital transformation.
How do you see the future of immersive tech and data privacy in Latin America? Let’s discuss!
#ImmersiveTech #DataPrivacy #LatinAmerica #AR #VR #DigitalTransformation
By Andres Leon
Keywords: AR/VR, Innovation, Metaverse
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