Contrary to expectations, recent advances in educational coverage, connectivity, and mobile device penetration in Latin America and the Caribbean—especially following the pandemic—are not contributing to the development of skills and learning among children and youth in the region, according to a report by the Inter-American Development Bank and the World Bank.

Before the pandemic, it was estimated that 52% of children in the region had a deficit in literacy skills—a figure that was already alarming. Today, the situation is even more serious: according to the report, 70% of 10-year-olds cannot understand a simple text. Furthermore, 75% of students fall into the lowest proficiency levels in mathematics, and 50% do not meet the minimum standard in reading.

These are not merely educational metrics: they foreshadow future difficulties in the labor market and risks of economic exclusion. In the age of infinite information and generative artificial intelligence, the problem is no longer absolute illiteracy, but functional digital illiteracy: students who master interfaces and short messages but lack the skills needed to analyze an argument or detect fake news.

However, reducing the use of technology is not necessarily the solution. The challenge lies in how to integrate it into a robust pedagogical model that allows students to take ownership of their learning and evolve from passive learning experiences to active and collaborative ones, stimulating the development of critical thinking.

Given this complex context, can EdTech companies help resolve these crises?

Innovation From the Ecosystem: Solutions Underway

Every crisis holds an opportunity. The “learning crisis” in the region has been a driving force behind the emergence of technological solutions that seek to address learning challenges, develop skills, reduce dropout rates, or improve the school environment and mental health.
 
That is why, at IDB Lab, we support EdTechs that develop responsible technology to address this crisis, empowering teachers and students through:

•    Adaptive literacy: Initiatives like Wumbox are using artificial intelligence and gamification to improve early childhood literacy skills, achieving up to a 30% improvement in learning outcomes, even in vulnerable contexts with little or no connectivity.

•    Interactive early childhood experiences: PleIQ is a pioneering startup creating interactive learning experiences for preschool education. The solution integrates augmented reality and artificial intelligence into physical books and platforms, which improves attention, learning, and stimulates creativity from a very early age, providing teachers with real-time information on their students’ progress.

•    Educational Communities: Letrus is a collaborative platform that takes a comprehensive approach to learning and writing skills using artificial intelligence. A study of the platform’s impact on 12,000 middle school students in Brazil demonstrated significant improvements in reading and writing skills, facilitating young people’s transition to adulthood and significantly enhancing the teaching experience for educators. 

•    Skills for the future: Platforms like Jovens Gênios integrate neuroscience to foster student motivation and interest, developing key skills for their professional performance, such as curiosity, resilience, frustration tolerance, and adaptability. 

Market Barriers Limiting the Development of EdTech with Educational Impact

Latin America is the fastest-growing EdTech market in the world, but much of that investment is lost without teacher support. The 2021 report by IDB Lab and HolonIQ warns that infrastructure alone is not the solution. For technology to bridge the gap, it must meet three pillars of validation: technology (that works on low-end devices), methodology (based on the science of learning), and scalability.

The report highlights that there are more than 1,500 EdTech startups in the region attempting to solve these problems, but many face the challenge of market fragmentation. The key lies in “impact validation”: we don’t need more apps; we need apps that demonstrate traction, effectiveness, and educational impact.
 
The sector can not only help shift linear trajectories of issues that have persisted for decades, but it is also a potential source of employment, investment, and social equity.

A Call for Multisectoral Action

Literacy must be viewed today as an ecosystem, as it involves dimensions that go beyond technology. For example, the learning deficit in the region limits the development of life trajectories and costs GDP points: a population that does not understand what it reads is a population with lower productivity and innovation capacity.

There are no simple solutions to such a deeply rooted problem. However, identifying innovative approaches and new technologies that help address the learning crisis is a moral challenge to which we must all contribute. In a world where artificial intelligence will soon do the work of synthesis for us, the human capacity to discern and understand deeply will be our most valuable asset.

We need to move from basic connectivity to “cognitive connection.” Only if we equip our younger generations with the tools to view the world through a critical lens can we turn the digital age into a driver of true prosperity for Latin America and the Caribbean.