14/11/2024

UN SDGs and AI - Mexico

UN SDGs and AI - Mexico This is part one of a series of blogs by the IFoA Data Science, Sustainability and Climate Change Working Party, which discusses progress updates on UN SDGs and AI usage. This blog focuses on Mexico.

Background to UN SDGs and AI benefits

Adopted in 2015, the United Nations’ Sustainability Development Goals (UN SDGs) are a voluntary set of seventeen targets for governments around the world, with the aim of addressing a wide range of challenges including poverty, climate change and gender inequality by 2030.

Given the ongoing popularity and focus on Artificial Intelligence (AI), there is a broader question of whether AI can be used to help accelerate progress for each UN SDG. (Source: World Economic Forum) For example, the annual AI for Good Summit takes place in Switzerland which recognises the potential benefits AI solutions can have to both address any current problems and accelerate UN SDG progress.

This blog aims to look at both local SDG and AI progress in Mexico, and how AI solutions are being used to progress local SDG development.

Current challenges and SDG progress

Mexico integrated the UN SDGs in its 2019 – 2024 National Development Plan, where it adopted the principle of “leave no one behind, leave no one out.” Further, in 2017 Mexico set up the National Council to address the 2030 Agenda, which was relaunched in 2019 as the National Strategy for the 2030 Agenda, to address any shortcomings. (Sources: SDG Global Forum, Gobierno de Mexico, 2030 agenda in Latin America and the Caribbean, UN report - Mexico Partnership Landscape Assessment). Similarly, Mexico is one of several signatories of the Escazú Agreement in 2018, which is a regional agreement in Latin America and the Caribbean with the wider aim of protecting environmental rights. (Source: Global Citizen)

Despite this, Mexico is currently ranked 80th globally in terms of progress, with an overall score of 69.3 out of 100. (Source: https://dashboards.sdgindex.org/static/profiles/pdfs/SDR-2024-mexico.pdf) Several of these SDGs are classified as facing major challenges including SDG 6 (clean water and sanitation) and SDG 10 (reduced inequalities).

Examples of local SDG projects

Mexico is sometimes referred to as the birthplace of the modern Green Revolution – a reform which resulted in agricultural modernisation, moving from being an agricultural importer to exporter from 1940 to 1965. (Source: JSTOR library) This change helped promote self-reliance though potentially at the cost of soil degradation via chemical use and a large disparity between wealthier farmers and smallholders. Agriculture has been present in Mexico for thousands of years. An indigenous and efficient farming system used is called the milpa. This is viewed as a sustainable process. However, the recent effects of climate change have put pressure on this practice.

Other projects Mexico is actively engaged in which align to achieve UN SDGs include:

  • The Sembrando Vida initiative, implemented in 2019, pays smallholder farmers to promote agroforests to reduce poverty, reduce forest loss and protect biodiversity. (Source: GLP).
  • The water purification plant in Ejido Villanueva. (Source: National Geographic).
  • Wind farms in Oaxaca and a solar power plant in Villanueva. (Sources: Climate Impact, NS Energy).
  • Issuing a total of c.USD 38 billion thematic bonds where proceeds are used for green initiatives. (Source: Climate Bonds).
  • New agricultural support programmes in 2019. (Source: USDA).
  • In 2003, Mexico’s public healthcare insurance system was launched with its aim being to provide access to healthcare to low-income individuals. However, over the past few years, the popularity and success of this has declined with criticisms including corruption. (Source: Think Global Health).

AI progress

Mexico ranked 68th in the world with an overall score of 50.37 out of 100 on Oxford Insights’ Government AI Readiness Index and similarly 53% on IMF’s AI Preparedness Index – both indices showing indicative progress for AI adoption within a country. (Source: Government AI Readiness Index 2023, IMF)

Previously, Mexico ranked 22nd in the world in 2018 and hence this represents a large drop in recent global rankings. (Source: Wilson Center News) In 2018, Mexico launched its National AI Strategy leading the way in Latin America. (Source: OECD, Oxford Insights, Oxford Insights) The AI Strategy covered 6 areas: governance, research and development, capacity/skills/education, data infrastructure, ethics and regulation, and Mexicans abroad. (Source: Digital Trade & Data Governance Hub, OECD) However, due to political changes and challenges, this strategy did not progress as expected, leading to Mexico falling behind its peers.

In saying this, despite the government’s reduced focus on AI, in 2018 Senator Alejandra Lagunes founded the National Alliance on Artificial Intelligence (ANIA, with the abbreviation based on the Spanish name) which is a prominent force in promoting AI within Mexico. For example, it recently published its AI proposal covering suggestions for regulation and governance structures. Similarly, ANIA has been involved with drafting a proposed bill to legislate on cybersecurity, AI, neurorights and neurotechnology. (Source: Verde)

The continued growth of AI in Mexico is expected to increase over the next few years, with the market for AI within Mexico projected to reach c.USD 12.5bn by 2030. (Source: Statista)

In September 2024, Microsoft announced that it is planning to invest c.USD 1.3 billion in Mexico over the next 3 years, improving both cloud and AI infrastructure with an overall aim of benefiting five million Mexicans and 30,000 small businesses alike. (Source: Reuters) Similarly, the recent Google for Mexico AI summit held in September 2024 further showcased how digital technology and AI could be used to support economic growth in Mexico e.g. including USD 1.5 million in funding for developing an AI-driven platform for sustainable water management. (Source: Google)

Further, it is estimated that the manufacturing industry will spend more than USD 100 million in 2025 on AI in Mexico. (Source: https://aimexico.org).

Regulation surrounding AI in Mexico is currently not centralised, though the 2018 National Digital Strategy and its AI Strategy document has suggested a framework for such regulation. (Source: Legal 500)

Example local AI projects used to promote SDGs

Smart cities use digital innovation and real-time data to improve sustainability and the quality of life for their inhabitants. Progress towards smart cities within Mexico includes Mexico City, Guadalajara and Monterrey with the use of the Internet of Things, Big Data and Artificial Intelligence. (Source: Mexico Business News).

  • Mexico City: The local council has partnered with tech firms and research institutions to develop solutions which improve traffic, reduce pollution, and enhance public safety. (Source: Bloomberg)
  • Guadalajara: Often referred to as the “Silicon Valley of Mexico,” Guadalajara is leading the way with technological innovation within Mexico. Its innovative Ciudad Creativa Digital project aims to use smart-grid technology to optimise energy use within a specific district of a city.

The use of digital health solutions, such as telemedical and mobile health applications, is increasing in Mexico though there is a need for more regulation. (Source: Chambers and Partners)

SASMEX, the early warning earthquake alert system in Mexico, can now be accessed via its mobile app tool providing essential warnings to residents. Future development should aim to leverage AI to enhance drone and satellite footage of building damage, which in turn would help local authorities prioritise inspections and local resources. (Sources: Medium, Springer)

Opportunities for local actuarial innovation within SDGs

Though general benefits via social security are not as developed and insurance is not as widely used compared to some countries, the market is adjusting and exploring alternative and innovative solutions within Mexico. These include:

  1. In partnership with Swiss Re and the Rockefeller Foundation, the Mexican Reef Protection Programme was established in 2018 and includes innovative parametric insurance for coral reef restoration, which provides protection following a specified cyclone event. (Source Insure Resilience).
  2. Launched in 2022, innovative parametric insurance for smallholder farmers provides cover for white corn crops that are vulnerable to extreme climate events such as drought and excess rainfall. The novelty of this product is that it provides a protection mechanism for vulnerable and low-income Mexican farmers. (Source UN IRFF) In saying this, the number of farmers covered by microinsurance still stands at around 15%. (Source Ideas42) There is scope to promote, educate and broaden insurance solutions within this space.

Further reading

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Disclaimer

The views expressed in this post are those of the individual author(s), and not necessarily those of the Institute and Faculty of Actuaries or those of their employer(s). Information within this post is correct as at the date of writing (i.e. end of October 2024). Hence, there may be subsequent updates which are not reflected. Any reader should still reference the underlying legislation and standard, and should there be any conflict, the underlying information in the relevant standard or legislation supersedes any information presented in this post. Please note that this post is not promoting any of the underlying sources used.