A growing number of businesses in Brazil are doubling down on digital innovation, eager to stay ahead in an increasingly competitive landscape. According to a new report by Information Services Group (ISG), a global AI-focused technology research and advisory firm, enterprises are actively investing in cutting-edge solutions to keep up with evolving consumer demands.

Embracing Change to Stay Competitive

With Brazil’s market evolving rapidly, companies recognize the need to adapt to emerging technologies such as AI, automation, and cloud computing. However, they are not tackling these challenges alone. Many are turning to expert service providers for guidance, strategic insights, and tailored solutions to make digital transformation more than just a buzzword.

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“Digital transformation isn’t just about upgrading tools—it’s about changing how businesses operate at their core,” said Shafqat Azim, ISG partner and Americas lead for digital transformation. “Service providers play a crucial role in helping Brazilian companies integrate new technologies seamlessly into their culture and processes.”

AI and Automation Reshape Customer Experience

Brazilian enterprises are using AI and automation to deliver more personalized customer experiences. Today’s consumers expect businesses to anticipate their needs and offer relevant solutions in real time. By leveraging advanced data analysis tools, companies can understand customer behavior patterns and tailor their offerings across various marketing channels.

Beyond personalization, industries such as retail, healthcare, and manufacturing are pushing innovation further with extended reality (XR). Retailers are enhancing shopping experiences with virtual try-ons, reducing return rates and improving customer satisfaction. Meanwhile, healthcare providers use XR for interactive virtual consultations, and manufacturers integrate digital twins with XR for improved factory monitoring and employee training.

Overcoming Challenges to Innovation

Despite the enthusiasm for digital innovation, businesses still face roadblocks. A shortage of skilled professionals, concerns over data security, and the need for significant infrastructure investments are among the most common challenges. Service providers help companies navigate these issues by offering strategic consulting and hands-on implementation support.

“Leading innovation service providers understand that digital transformation is complex,” said Jan Erik Aase, partner and global leader at ISG Provider Lens Research. “Businesses that commit to innovation and form strong strategic partnerships are in a better position to turn uncertainties into opportunities.”

Key Players Driving Digital Transformation

The 2025 ISG Provider Lens Digital Business Innovation Services report evaluates 57 technology service providers across various innovation categories, highlighting the top leaders in the space. Notable mentions include:

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  • Accenture, AI/R, and Globant, recognized as leaders in three categories.
  • BRQ, Deloitte, MadeInWeb, and Stefanini, excelling in two categories each.
  • ARVORE, Brivia, Cadastra, CI&T, Deal, Dedalus, Falconi, and others, making strides in different innovation areas.

Additionally, act digital, Spassu, and Valtech were named Rising Stars for their promising potential in the market.

FAQs

1. Why are Brazilian companies accelerating digital transformation?

Brazilian enterprises are embracing digital innovation to enhance customer experiences, optimize operations, and stay competitive in a rapidly evolving market. The shift is largely driven by advancements in AI, automation, and cloud computing.

2. What are the biggest challenges companies face in adopting new technologies?

Businesses often struggle with skill shortages, security concerns, and resistance to change. However, partnering with expert service providers helps them navigate these challenges more effectively.

3. How is AI improving customer experiences in Brazil?

Companies are leveraging AI-driven insights to understand consumer behavior, anticipate needs, and deliver hyper-personalized experiences across multiple touchpoints, from online shopping to healthcare services.

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