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Argentina: AI and the App Economy

  • October 22, 2024
  • Michael Mandel
  • Andrew Fung
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INTRODUCTION

The global App Economy was born 16 years ago, in July 2008, when Apple unveiled the first App Store. Soon after, Google opened the Android Market, which later became Google Play. In this way, Apple and Google created a whole new global market for mobile applications, leading to an unprecedented wave of mobile apps in gaming, entertainment, social media, finance, e-commerce, productivity, health, and other areas.

In addition to benefiting smartphone users, the App Economy has become a potent source of job growth worldwide and in Argentina. Starting from zero 16 years ago, the Progressive Policy Institute (PPI) estimates that Argentina’s App Economy includes 28,000 workers as of September 2024. These include workers who help develop, maintain, and support mobile applications and keep them safe and secure.

One of the hottest new areas of the App Economy has been the application of artificial intelligence (AI) to mobile apps. We will see a wide variety of AI-enabled mobile applications developed to improve efficiency and userfriendliness in areas such as health care, manufacturing, agriculture, mining, and government. Such applications of AI to mobile apps may be easier and quicker to develop than more massive “foundational” systems, such as ChatGPT and its competitors.

From the perspective of Argentina — which is fighting a serious economic downturn as of the date of this paper — this trend offers new opportunities for the country to participate in the global tech boom. President Javier Milei, who took office in December 2023, has been encouraging investment and hiring by global tech firms and positioning Argentina as a potential global AI hub. One way Milei’s effort could succeed is by using the combination of AI and the App Economy to help boost the IT sector

This paper takes an initial look at the potential convergence of AI and the App Economy in Argentina. First, the paper estimates the number of workers employed in Argentina’s App Economy, using a methodology we have applied globally. We estimate the size of the iOS and Android ecosystems and give examples of App Economy jobs in Argentina. Second, the paper estimates the number of workers employed in AI-related jobs in Argentina using the same methodology and gives examples of AI-related jobs. Third, the paper discusses how AI can help grow Argentina’s App Economy.

Read the full report in English and Spanish.

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