Gain leverage in an AI-driven economy

AI in Education: Why We Need Transformation, Not Just Improvement

By Maria Mercedes Mateo-Berganza Diaz

Highlights

We are educating for a world that no longer exists: AI is being layered onto systems designed for a pre-digital era, even as evidence shows technology is already reshaping cognition, learning patterns, and mental health.

Incremental improvement misses the scale of the challenge: using AI to optimize existing practices cannot address the learning crisis, inequality, or relevance; only system-level transformation can.

Future value depends on strong foundations plus human judgment: education must prioritize general skills that enable complex, “messy” work—where execution, reasoning, and adaptability remain beyond AI.

We stand at a rare moment in history: a chance to fundamentally reimagine education for a world that technology has already transformed.

This is not a distant future: it is the reality we are living now and there is no way back. Recent work, including the book Artificial Intelligence and Education in the Global South, brings this urgency into sharp focus, reminding us that the central question is no longer whether AI belongs in education. 

Technology has already reshaped how we learn, think, and work. The real opportunity lies in understanding what this moment demands of us: not incremental improvements to existing systems, but genuine transformation—one that prepares students for work and life in an AI-augmented world.  Here's what the latest research tells us about getting this right.  We're not simply adding AI to education. We're introducing it into a world already fundamentally reshaped by technology—and that distinction matters profoundly.

The Reality We're Already Living

Consider how dramatically our world has shifted. In the 1930s, we spent most of our time with family and friends. Today, we spend 60% of our time online. Misha Rubin’s animation illustrates the evolution of how humans spend their time between 1930 and 2024. Recent research reveals that infant screen exposure (children 0-2) has lasting impacts on brain development and adolescent mental health, with higher infant screen time showing accelerated maturation of brain networks. This acceleration isn't beneficial—certain brain networks develop too quickly, before establishing the efficient connections needed for complex thinking, potentially limiting flexibility and resilience later in life. 

For adolescents navigating critical prefrontal cortex development, the effects of social media, cyberbullying, and isolation are equally concerning. And a 2025 MIT study demonstrated that over-reliance on AI tools for cognitive tasks creates what researchers call "cognitive debt": reduced neural engagement, impaired memory recall, and weaker sense of essay ownership among students who used AI support to develop essays.

Improvement vs. Transformation

This context demands more than incremental change. Educational improvement—using AI to make existing practices slightly more efficient or support teachers in current frameworks—is insufficient. These improvements are localized, difficult to scale, and fundamentally maintain the status quo. 

What we need is educational transformation: systemic change that addresses our most fundamental challenges—the learning crisis, inequality, and relevance—at scale and sustainably.   Transformation requires complete systemic alignment across curriculum, teaching methods, assessment, and governance. 

Simply put: improvement optimizes parts of the system.  Transformation changes how the system works.

Balancing Foundations and Futures

The key lies in understanding how human capital actually develops.  A 2023 paper, "Deconstructing Human Capital to Construct Hierarchical Nestedness" analyzed U.S. occupational data and revealed that human capital is hierarchically structured, not flat.  The research identifies two types of specialized skills:

- Un-nested specialized skills can be acquired without a strong general foundation, but they offer limited economic returns.

- Nested specialized skills build upon robust general capabilities.  These are associated with career progression and significant wage premiums.  Premium workers don't simply pile up narrow skills; they deepen general competencies with strategic specializations.

The conclusion is clear: to construct valuable specialized skills, workers and economies must first invest in strong general skills.  Specialization without this foundation delivers weaker economic returns.

The Choice Between Single-Task and Messy Jobs

Professor Luis Garicano offers a complementary insight about the future of work.  We face a fundamental choice between two job paths:

Single-task jobs are increasingly vulnerable.  AI excels at automating well-defined, single tasks.  While humans remain in the loop today due to error rates that still persist in many fields (preventing unsupervised AI), those errors are decreasing rapidly.

Messy jobs, those combining multiple tasks, judgment, local knowledge, relationships, and real-world execution, are far more resilient.  AI doesn't thrive at these kinds of tasks.

Garicano's conclusion: take the messy job, where learning, judgment, and execution matter, because that's where humans will retain value and gain leverage in an AI-driven economy.

What This Means for Education

If we want AI to augment humans rather than replace them, we must balance foundational learning and core competencies with emerging specialized skills.   Students need strong general skills as the foundation for developing nested specialized capabilities that lead to resilient, complex work.

AI commoditizes codified knowledge, but it doesn't replace execution, coordination, empathy, political navigation, or tacit knowledge.   These uniquely human capabilities flourish in environments that demand judgment, synthesis, and adaptive thinking.

The Path Forward

This isn't about making our current education system work slightly better.  It's about fundamentally rethinking what education means in a world where technology has already transformed how we think, learn, and work. 

The question isn't whether to use AI in education.  It's whether we'll transform our educational systems to prepare students for a world where their value lies not in what they know, but in how they think, connect, adapt, and execute in messy, complex, human contexts.  

That's the transformation we need.

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We invite you to explore the IDB’s report on Artificial Intelligence and Education, that examines the role of artificial intelligence through the lens of what we already know from decades of digital education. Across Latin America and the Caribbean, teachers and school leaders are asking the same question: How can we use artificial intelligence to help every student learn better? In this blog we share how 193 real AI initiatives are already transforming teaching, inclusion, and school management, and what it means for the future of education.   

Also, discover how teachers across the region are already integrating AI into their classrooms — based on new data from CIMA Note #37, drawn from the international TALIS 2024 survey.

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Eye Care Technology

How low-cost, high-impact technology can transform healthcare delivery in remote settings

Smartphones, AI, and Glasses: Reaching Remote Communities with Portable Eye Care

By Natalia Monica Laguyas, Leonardo Goes Shibata, Caio Abujamra, Frank Hida

About 80% of our interaction with the world happens through our eyes.  Now imagine gradually losing your sight while living in a remote Indigenous community in Brazil, far from specialized care.  How hard would it be to carry out your daily activities?

This is the challenge that Aldeia em Foco (“Village in Focus”) set out to solve.  Supported by the Inter-American Development Bank (IDB), IDB Lab, and partners such as the Suel Abujamra Institute, GoodVision, and Japan’s OUI Inc., the project delivers accessible eye care to some of the most isolated regions of the Amazon.

Trained community workers can perform screenings in just 15 minutes using a smartphone, a small camera attachment and AI-powered image analysis.  Images are uploaded to the cloud, where AI detects abnormalities and connects patients to specialists remotely.  This simple, low-cost model removes logistical barriers to eye care in places without medical infrastructure.

Immediate Solutions, Lasting Impact

In addition to diagnosis, Aldeia em Foco provides on-site vision correction through GoodVision’s modular glasses, which can be assembled and adjusted to each person’s needs within minutes—addressing about 70% of visual problems detected.

So far, the project has reached over 100 villages in 11 Brazilian states, delivering 25,000 screenings, 18,000 consultations, 16,000 glasses, and nearly 370 surgeries.   It has also trained almost 700 local workers for basic eye health access, creating a sustainable care network that continues beyond project visits.

'Saving a patient’s vision is almost as important as saving their life'

— Dr. Eisuke Shimizu, ophthalmologist and CEO of OUI Inc., which developed the Smart Eye Camera (SEC) used in the project.

This approach also makes economic sense.  According to the Value of Vision study by the International Agency for the Prevention of Blindness, every $1 invested in eye health yields $28 in return. In Brazil, an investment of $295 million between 2026 and 2030 could generate $8 billion in economic benefits.  Better vision means higher productivity, more active older adults, and stronger communities—proof that eye care is not only a health priority but a smart investment in inclusion and growth.

Scaling Health Innovation for Broader Impact

Aldeia em Foco shows how low-cost, high-impact technology can transform healthcare delivery in remote settings.  Its model—combining innovation, training, and international collaboration—offers a replicable blueprint for inclusive healthcare innovations across Latin America and beyond.

Highlighting the global collaboration and innovation, this project has already received an IDB Innovation Award that focuses on its potential to transform healthcare delivery in underserved regions.

By integrating this approach into public programs and exploring partnerships with the private sector, countries can expand access to essential eye care while strengthening resilience and equity in their health systems.

Restoring sight means restoring independence, dignity, and opportunity.  And as Aldeia em Foco proves, a clearer vision for one person can illuminate the path toward a healthier, more prosperous and inclusive future for all.

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Artificial Intelligence - AI Adoption in Latin America and the Caribbean

While AI adoption is moving fast in other parts of the world, Latin America and the Caribbean face a more basic challenge: access

By Liliana Serrano Pájaro

What comes to mind when you hear the words “artificial intelligence”? When we posed this question to students at two public schools in Colombia, their answers ranged from giggles to thoughtful silence—and one unforgettable response: 
 
“AI is like a unicorn-duck. It doesn’t exist.  It’s just something made up on computers or phones.” 

Her words captured something that many students across Latin America and the Caribbean are feeling: AI may be a hot topic, but it still feels distant – mythical, even.  Yes, it’s making its way into classrooms, but it hasn’t yet taken root in education systems across the region.

Without Access, There’s No Transformation 

While AI adoption is moving fast in other parts of the world, Latin America and the Caribbean face a more basic challenge: access.  In the U.S., nearly 40% of young people were already using generative AI tools by late 2022 – a much faster uptake than for the internet or computers.

In the region, 1 in 10 students still doesn’t have a computer at school, and 2 in 10 lack internet access.  This digital divide makes it hard to integrate AI into classrooms meaningfully.  Compared to OECD countries, where more than 90% of schools have internet for learning, the gap is clear.  The truth is, reliable internet, electricity, and devices remain out of reach for many schools in our region, making it impossible to unlock AI’s full potential.  That’s why our new publication urges a realistic approach: drawing on decades of experience, it provides a roadmap to help countries harness AI responsibly and equitably. 

Turning AI into Real Opportunity

Even as AI unlocks new possibilities, we must ask: Who truly benefits?  Can rural students without internet benefit as much as their urban peers?  Are we training teachers well enough, not just buying tech?  Are we protecting students’ data as carefully as we protect their safety?

These questions brought global experts and regional leaders together for the event “AI & Education: Challenge Accepted!” hosted by the IDB.  This was more than a conference – it was a call to rethink how AI can build inclusive, future-ready education systems in Latin America and the Caribbean.

The Carvajalino Sisters, three young entrepreneurs and co-founders of The Biz Nation, opened the event with an inspiring talk about empowering thousands of young people across Latin America and the Caribbean through skills and innovation.  Throughout the event, speakers highlighted that AI could help personalize learning, make education systems more efficient, and support decision-making, but it should complement teachers, not replace them.  Some of the key takeaways from the event included: 

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• Equity comes first.  Without equity, there is no true digital transformation.  The lack of reliable internet, devices, and even electricity in many public schools across the region threatens to leave millions of students behind. Building up basic infrastructure is the first step. 

• Teachers must be at the heart of the strategy.  AI should enhance, not replace, educators.  Innovative models like Alpha School, 2-Hour Learning, and Minerva University show how AI can help optimize learning time, while tools created by organizations like Eedi and Stanford University’s National Student Support Accelerator emphasize the importance of keeping teachers at the center – guiding, supporting, and connecting with students. 

• Clear policies are critical.  Countries need strong regulatory frameworks, robust student data protection, and public policies that align with their education goals.  System-level strategies like Uruguay’s EduIA Lab and Brazil’s Gestão Presente program with Letrus provide practical roadmaps. These examples show that meaningful AI integration doesn’t start with the newest tools, but with thoughtful public investment and comprehensive data policies. 

A Long-Term Vision Is Essential.

With the rapid pace of AI development, education systems need to do more than react – they must anticipate. This means aligning education with labor market trends and fostering digital literacy, critical thinking, and adaptability.  Programs like PowerSchool in the United States and Stemi in Croatia are leading examples of how AI solutions and public-private partnerships can better connect schools with the skills that industries need. 

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• AI should be a catalyst for deeper learning, not just a shortcut for routine tasks. 
  
  
• Adopting AI must be guided by principles of inclusion, ethics, and responsibility, helping develop digital citizens who can strengthen their communities, engage in respectful dialogue, and shape public policy.  In this spirit, ISTE is redefining digital citizenship, showing that we must move beyond traditional fear-based approaches and focus on empowering responsible, proactive use.

The Road Ahead One student described AI as a unicorn-duck – something imaginary.  But AI is already here.  How we make it real, fair, and useful for everyone is what matters.  At the IDB, we’re committed to helping countries across Latin America and the Caribbean use AI to expand access, improve outcomes, and close gaps.  This event was just the beginning of a vital conversation. The real challenge isn’t whether we embrace AI, but how we do it and who we bring along. 

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Phases of Robot Integration On The Move

THREE PHASES OF ROBOT INTEGRATION; BEGINNING IN 2025!

We shall never again for all the rest of human history be alone on earth and we shall share the earth with machines that demand our conformity - just as your mobile does now - rather than conforming to us

By Professor Gilbert Morris
Nassau, The Bahamas

Learn this term “device density”…it’s a measure of how many robots are integrated with humans in society on an everyday basis.

What you may not have imagined is there are already 3-5 times as many robots as there are humans:

1. Your mobile device

2. Siri/Alexa

3. Your EV automobile…like Tesla

4. Your digital speakers

5. Your iPad

6. Any digital device in the hope

7. All Social Media

8. Space Probes and Satellites

Imagine three further distinctions:

1. Artificial Intelligence (ChatGPT etc.)

2. Artificial General Intelligence (AGI) there is a race between NVIDIA, GOOGLE, META, AMAZON, OpenAI and China for dominance in this area.  They aren’t trying to find a cure for diabetes.  They want to become the dominant monopoly capable of controlling all human data or AI capable of full human replacement 

3. Artificial Super Intelligence (ASI) means “Singularity” which means all systems and devices would be hyperlinked, with computational computational capacity as near as possible to human cognition; rendering humans obsolete.

Can you handle another distinction?

1. Platform AI - that’s non-Device/non-Robotic AI, usually in the form of a large data centre.

2. Robotic/Device or humanoid-mobile AI

We are in the stage of the first - Platform AI, but 2025 will see the rollout of the second iteration of humanoid robots.  And just so you imagine it correctly: imagine robots being made at the rate of mobile phones!

This means that for the first time and forever in the human future, humans would share the earth with another and perhaps competing computational intelligence.

What would it be like?

First reaction: like Butterflies.  Fascinating, integrating and exhilarating

Second reaction: like Tin-Man or R2D2, machine-human “friendships”!  That’s because the human ego is stimulated by anything that acts like a human…from which humans assume their natural superiority! 

Third reaction: the two reactions above will evolve to “cockroach menace”.  That is the same way you feel about a cockroach infestation, you’ll come to feel about robots, just when they will be multiplying everywhere with a device density of one-to-one; since robots will be manufacturing robots.

We shall never again for all the rest of human history be alone on earth and we shall share the earth with machines that demand our conformity - just as your mobile does now - rather than conforming to us.

If you ask: why wouldn’t these machines be obedient to us, I’ll leave you with the creator-created metaphor: God - the religions say - created you; if you don’t obey your #creator, why should what you created obey you?

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