Brazilian Firms Adopt Microsoft AI with Governance

Key Terms

data sovereignty regulatory

Data sovereignty is the principle that digital information is subject to the laws and control of the country or entity where it is stored or processed. For investors, it matters because where data lives affects a company's legal obligations, costs, ability to sell services across borders, and exposure to government access or restrictions — like owning a house that must follow the rules of the town it sits in.

policy-as-code technical

Policy-as-code is the practice of writing organizational rules, regulations and compliance requirements in machine-readable code so they can be automatically checked, enforced and audited by software. Think of it like putting company rules into a programmable lock that consistently gates actions and records when rules are followed or broken. For investors, it matters because it makes regulatory compliance and operational controls more visible, repeatable and auditable, which can reduce compliance risk and help scale business operations.

technical debt technical

Technical debt is the extra work and cost a company incurs when it chooses quick, imperfect software or system fixes instead of doing a more thorough job now. Like patching a leaky roof instead of replacing it, those shortcuts can slow product development, raise maintenance bills, increase outage and security risk, and reduce a company’s ability to grow—factors investors watch because they can lower profits and company value over time.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Organizations prioritize AI, application modernization, secure cloud operations amid changing regulations, ISG Provider Lens^® report says

SÃO PAULO--(BUSINESS WIRE)-- Brazilian enterprises are adopting Microsoft AI and cloud technologies to improve business performance and respond to evolving regulatory and operational requirements, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® Microsoft AI and Cloud Ecosystem report for Brazil finds that organizations are making AI their highest technology priority while working with service partners to establish data management and control layers to support advanced automation. New national laws, major tax reform and cybersecurity threats have increased the need to adopt technology architectures that support secure, scalable AI initiatives.

“The organizations achieving the greatest value from AI are the ones investing in the operational foundations behind it, not just the technology itself,” said Bill Huber, ISG partner, Digital Platforms and Solutions. “Companies are discovering that data quality, governance and regulatory readiness are strategic differentiators, because they determine whether AI can deliver consistent business value at scale.”

Brazilian organizations are deploying AI as the centerpiece of coordinated business transformations rather than treating it as a standalone technology initiative. Alongside AI investments, enterprises are prioritizing the integration of critical systems, cybersecurity and data protection for more connected and resilient operations. These efforts reflect growing demand for technology environments that will adapt to changing requirements to support long-term business objectives.

Legacy system modernization has become an urgent priority as Brazil's tax reform process requires organizations to operate under two tax regimes simultaneously. Companies are updating ERP platforms, modernizing Azure environments and consolidating application portfolios to meet new business requirements. These efforts also reduce technical debt and make enterprises’ core technologies more flexible in preparation for broader AI adoption.

As in other regions, technology purchasing decisions in Brazil increasingly emphasize resilience and measurable outcomes. Organizations are becoming more selective about investments, favoring initiatives that deliver clear business value while strengthening cybersecurity and protecting sensitive data. As Brazil makes progress on its AI Legal Framework and offers tax incentives for building data centers, demand is increasing for locally supported cloud environments and secure AI architectures, ISG says.

“Brazil's regulatory and tax changes are compressing technology transformation into a much shorter timeframe,” said Cristiane Tarricone, lead author of the report. “Organizations increasingly need partners that can modernize core platforms while preparing AI environments that meet operational, security and regulatory needs from the outset.”

The report also explores other trends affecting Brazil's Microsoft ecosystem, including the growing importance of data sovereignty in technology decisions and the shift in enterprise purchasing preferences toward shorter, more performance-based engagements.

For more insights into the challenges faced by enterprises in Brazil that are relevant to the Microsoft AI and cloud ecosystem, and ISG’s advice for addressing them, see the ISG Provider Lens^® Focal Points briefing here.

The report evaluates 51 unique providers across five quadrants: Microsoft Productivity and Business Process Services — Large Market, Microsoft Productivity and Business Process Services — Mid Market, Azure Data Transformation and AI Services, Azure Managed Services — Large Market and Azure Managed Services — Mid Market.

The report names Accenture, Brasoftware, DXC Technology, Processor, TCS, Teltec Data and TIVIT as Leaders in three quadrants each. It names BlueShift, Dedalus, Kyndryl, Lattine, SoftwareONE and T-Systems as Leaders in two quadrants each. Best.Projects, BHS, Dataside, Ingram Micro, Kumulus, NTT DATA, Qualiserve and Stefanini are named as Leaders in one quadrant each.

In addition, Stefanini is recognized as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. AI/R, G&P, Minsait (Indra), NTT DATA, Pentare and Qualiserve are recognized as Rising Stars in one quadrant each.

Customized versions of the report are available from Beyondsoft, Processor and Qualiserve.

In the area of customer experience, Wipro is named the global ISG CX Star Performer for 2026 among Microsoft ecosystem providers. Wipro earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2026 ISG Provider Lens Microsoft AI and Cloud Ecosystem report for Brazil is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260812125448/en/

Press Contacts:
Laura Hupprich, ISG
+1 203-517-3132
laura.hupprich@isg-one.com

Thábata Mondoni, Mondoni Press for ISG
Mobile: +55 11 98671 5652
thabata@mondonipress.com.br

Source: Information Services Group, Inc.