- Home
- Blog
- Why More Startups Hire AI Developers from Latin America
Update on 04/04/2025 Why More Startups Hire AI Developers from Latin America
Table of contents
Hiring AI developers has become one of the biggest challenges for startups trying to build innovative products and bring them to market quickly. The competition for skilled AI talent is fierce, salaries have skyrocketed, and long, drawn-out hiring cycles can make scaling far more difficult than it needs to be. That’s why many startups are turning to nearshoring as a smarter, faster solution.
But how does nearshoring work, and why has Latin America become the go-to region for top-tier AI developers? We’re breaking down the benefits, challenges, and actionable insights so you can make smarter hiring decisions.
Artificial intelligence is reshaping industries—from healthcare and finance to retail and logistics. Naturally, the demand for skilled AI developers has skyrocketed. However, the supply hasn’t kept pace. Hire AI Developers are a rare find, especially in the U.S., where the race to hire the best talent across big tech, startups, and enterprises drives salaries up significantly.
To put this in perspective, senior AI developer salaries in the U.S. can range from $150k to over $250k per year—numbers that can make it nearly impossible for cash-strapped startups to compete.
Even when startups have the budget for top-tier AI talent, hire AI developers is a lengthy and complex process. Creating a job description, sourcing candidates, conducting interviews, and negotiating offers can take months. This wasted time has a real impact on startups that need to move quickly to stay ahead of competitors in a fast-moving AI landscape.
Remote work has opened up a global talent pool, but managing distributed teams comes with its own set of challenges—think language barriers, time zone differences, and scarce opportunities for real-time collaboration. For AI projects that require teams to move quickly and make high-stakes decisions, miscommunication can derail progress.
AI startups often face unique obstacles, so simply finding developers isn’t enough. Here’s what companies really need to look for when building high-performing teams.
AI startups don’t just need great talent—they need talent that can hit the ground running. Onboarding delays can stall timelines, so recruiting developers with relevant experience and the ability to quickly adapt to your systems is essential.
It’s not enough for developers to understand machine learning models in theory. For startups bringing products to market, you need engineers who can apply AI to real-world challenges and deliver tangible results.
The nature of startups is inherently uncertain. One month, you’re hiring to meet a spike in demand; the next, you might need to downsize. Flexible hiring models can help startups remain agile and avoid committing to long-term contracts that don’t align with changing needs.
AI projects often require close collaboration between developers, product managers, and other teams. The difference between success and failure often boils down to strong communication and a shared vision—not just the ability to write impressive code.
Nearshoring—working with talent based in nearby countries—offers an appealing model for startups looking to scale their teams without sacrificing quality. Here’s why it works so well for AI development specifically.
Hiring developers in Latin America ensures they’re working in the same, or similar, time zones as your U.S.-based team. This enables real-time collaboration, faster iterations, and fewer delays—a critical advantage for fast-paced AI projects.
Proximity goes beyond time zones. Developers in Latin America often share a deeper cultural understanding with U.S.-based companies, which leads to smoother communication and stronger team dynamics.
While offshoring to distant regions might be cheaper on paper, it often comes with hidden costs—such as delays due to miscommunication or timezone mismatches. Nearshoring offers a better balance, providing significant cost savings (40–60% compared to U.S. salaries) while maintaining high standards and experienced talent.
AI development often requires high levels of collaboration across technical and non-technical teams. Nearshoring simplifies real-time interactions in ways offshore models often fail to achieve.
Latin America isn’t just the closest nearshore region—it’s one uniquely positioned to meet the growing demand for cutting-edge AI talent.
Many Latin American universities are producing skilled engineers with expertise in AI, machine learning, and software development. Growing tech hubs in countries like Brazil, Mexico, and Colombia are creating vibrant ecosystems, fostering innovation and deeper experience in advanced AI technologies.
From Python and LangChain to OpenAI and vector databases, developers across the region are gaining valuable hands-on expertise with the tools that power today’s AI technologies.
English fluency has become a top priority for many developers in the region, further improving their ability to collaborate with U.S.-based teams seamlessly.
Salaries for developers in Latin America allow startups to allocate budgets strategically. Developers with experience in AI and machine learning are available at 40–60% lower costs than their U.S. counterparts—without compromising quality.
More importantly, nearshoring can reduce the administrative burden that comes with hiring internationally. Services like Sidequest manage contracts, compliance, invoicing, and onboarding, giving you more time to focus on building great products.
By solving key challenges, nearshoring empowers startups to stay lean, scale quickly, and access the talent needed to compete in a crowded AI market.
From real-time collaboration to cost-saving efficiencies, hiring AI developers nearshore offers clear advantages over traditional models or offshoring to countries with significant time zone gaps.
Whether you’re building your first AI product or scaling your team to meet growing demand, exploring nearshore partnerships can give you the competitive edge you need to succeed.