Laércio Cosentino, founder and chairman of the board of Brazilian software company TOTVS, has warned that Brazil is falling behind in the digital era, pointing to excessive regulation and taxation as key obstacles to the country's digital transformation.
Cosentino made the comments during an interview with the CNN Brasil programme "É Negócio". He said generative artificial intelligence represents an unprecedented shift in human history, unlike any previous technological revolution.
A Change Affecting Everything at Once
Cosentino said what makes the current transformation unique is how broadly it is unfolding. He described it as a radical change across every field, noting that for the first time everything is changing simultaneously.
He pointed out that earlier revolutions, such as the industrial revolution or the transformation of agribusiness, affected specific sectors, whereas artificial intelligence is now challenging every area at the same time.
Society Leading the Way
Cosentino also highlighted what he called an unprecedented phenomenon: society, rather than companies themselves, is now leading the pace of change. He said society also wants to do things differently, pointing to the role of social media and digital influencers in driving that shift.
He said there is no longer room for hesitation, arguing that the world is already living through a new era in which choosing whether to take part is no longer an option, because that moment has already passed.
Brazil's Digital 2030 Plan
Asked about how prepared Brazil is for this new landscape, Cosentino referred to the Brazil Digital 2030 plan, which sets out six main pillars: infrastructure, strategic technologies, research and development, workforce training, digital inclusion and the business environment.
He noted that an earlier plan, Brazil 2022, launched in 2010, failed to meet its objectives.
As a concrete example of Brazil's difficulties, Cosentino cited delays in approving a data centre policy. He said that over two years, Brazil lost several investments to India, Central America, Europe and the United States itself.
Calls for a "Reality Check"
Cosentino said excessive regulation and taxation make Brazil's innovation environment overly complex, regardless of which political party is in power. He concluded that without a reality check, Brazil risks remaining behind, and argued there is an urgent need to turn analogue workers into digital ones and to create quality jobs in the digital economy.
About the TOTVS Founder
TOTVS is one of Brazil's largest software companies, providing management systems used widely across Brazilian businesses. Cosentino founded the company and now serves as chairman of its board. "É Negócio" is a programme produced in partnership between NeoFeed and CNN Brasil, in which journalist Carlos Sambrana interviews executives and leaders of major Brazilian companies. New episodes air on Sundays at 8:45pm on CNN Brasil, with a repeat on Wednesdays at 7:15pm on CNN Money.
