MXLAN economic summit examines effects of AI, tariffs on border workforce

McALLEN, Texas (Border Report) -- The MXLAN International Economic Summit kicked off this weekend's festival celebrating Latino culture on the South Texas-Mexico border.

This year's economic summit focused on artificial intelligence, or AI, and emerging technology and what the Texas and border workforce will need to keep up with this ever changing field.

"It’s the tariffs themselves that are going to affect the supply chain, and will affect manufacturing costs, consumer pricing, etc. But I think equally important is the uncertainty of the future of tariffs," Carlos Margo, dean of South Texas College's Center for Advanced Manufacturing and Apprenticeships, told Border Report.

"And if there’s uncertainty whether the tariffs are going to stick, or not, or if so to what degree, then those uncertainties are going to really cause somewhat a dimension of havoc, if you will, in manufacturing simply because there’s going to be some paralysis, unfortunately,“ Margo said.

Margo moderated a panel discussion before 300 attendees at Friday morning's conference at the McAllen Convention Center.

Panelists described AI as "still in baby steps" but said the emerging technology has the ability to collect more data and is constantly being improved. Generative technology, like ChatGPT, are examples of where the industry is headed.

And that prompted a common question from many whether AI and robots will one day replace human workers.

Former Texas Workforce Commissioner Julian Alvarez, who also was a speaker, told Border Report he doesn't believe that will happen. In fact, he is optimistic that it actually will help to create jobs.

Texas currently has more than 15.7 million workers and current Texas Workforce Commissioner Bryan Daniel told the crowd that those workers will all have to get up to speed on emerging technology, like AI.

He said during the pandemic, Texas lost 2.1 million jobs. But currently is up 2.1 million jobs, that means a 4.2 million total gain, and he said technology is one of the major drivers.

Texas' economy has grown to $2.6 trillion and is the 8th largest economy in the world.

The Lone Star State also has led the nation in semiconductor exports for the past 14 years, according to Aaron Demerson, president and CEO of the Texas Economic Development, who led a discussion Friday.

"Texas is Wide Open for business! Move Your Business to Texas!" one of the slides Demerson put up on a screen read.

He said AI and technology is used from emergency departments to space travel to health care to plumbers, he said.

Former McAllen Mayor Jim Darling says the maquiladoras, or U.S.-run plants in Mexico, are big job drivers for the South Texas border region.

"We got a lot of experts and we brought in a lot of people to talk about economic development," Darling told Border Report. "We're right next to Mexico and we need to talk about how we can get the (trade) benefits directly and indirectly.''

More troubling to many, however, is the uncertainty regarding on-again and off-again tariffs threatened by President Donald Trump.

“There’s a lot of geopolitical uncertainty," Pablo Tagle III, chairman of the McAllen Economic Development Corporation, told Border Report.

Trump officials are headed to Geneva this weekend for initial trade talks with Chinese officials. On Friday, Trump suggested on social media that the United States could lower its tariffs on China possibly to 80%.