ManageEngine research finds growing technology complexity is consuming IT budgets across Latin America, while 61% of decision-makers are struggling to generate measurable business value from AI investments.
More than three-quarters of Latin American organisations are spending more on maintaining existing technology than innovation, according to new research from ManageEngine.
The Digital Transformation in Latin America 2026 study surveyed 1,000 business and IT decision-makers across Brazil, Mexico, Colombia, Chile and the Dominican Republic.
Some 76% said more of their technology budget goes towards maintenance than innovation, while only 9% prioritise innovation spending.
Technology fragmentation is adding to the challenge. More than half of respondents use between 11 and 25 separate point solutions, while 81% said tool sprawl has increased operational complexity during the past two years.
Despite growing investment in Artificial Intelligence, only 14% described their organisations as having reached an AI-orchestrated stage of Digital Transformation.
Although 93% believe their technology stacks are ready for AI, 61% are struggling to translate AI investments into measurable business value.
Security and compliance was the most frequently identified barrier to achieving AI returns, cited by 19%, followed by shortages of AI and data skills at 17%.
Cybersecurity is also a significant concern, with 57% believing their organisations experienced more successful cyberattacks during 2025 than in previous years.
Meanwhile, 70% expressed increased concern about data leakage caused by employees using unauthorised Generative AI tools.
