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MercadoLibre Expands AI War Chest by $30 Million in Q3

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MercadoLibre Expands AI War Chest by $30 Million in Q3

E-commerce and FinTech company MercadoLibre increased its investment in artificial intelligence by $30 million quarter over quarter as it builds its work around AI, the company said in a Wednesday (Nov. 4) letter to shareholders about its third quarter results.

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“We increased the investment quarter on quarter by $30 million, and we continue to see very, very good results, both consumer-facing as well as internal efficiencies,” MercadoLibre Chief Financial Officer Martín de los Santos said during a Wednesday earnings call.

MercadoLibre’s usage of AI grew “much faster” than its spend, the company said in the letter. The firm has become more efficient in its use of the technology by getting better at choosing the right model for each task and by expanding its use of open-source models, it said.

MercadoLibre has seen returns from its investment in AI in the form of revenue uplift, better user experience, cost avoidance and productivity, according to the letter.

The company provided several examples in the letter. The revenue uplift from deploying AI in search more than offset the cost of the models, the use of AI in customer service has reduced the need for representatives by “a multiple,” the company’s FinTech AI assistant Mago is now holding 19 million conversations per month and improving the user experience, AI has helped double the output of the technology teams over the past year, and the technology has freed up almost 20% of the hours worked by the finance teams.


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