Why AI? Why Now? A Perspective for Africa's Business Leaders & Innovators
Hello readers,
You've likely come across numerous articles about Artificial Intelligence (AI), and might be pondering, "Why is AI becoming such a focal point now, despite its presence over the last decade?"
We are at an inflection point with exponential data volume growth, coupled with affordable, high computing power and advancements in machine learning, which are setting the stage for unprecedented growth. Foundation models, which enable rapid learning from both structured and unstructured data, are heralding a new era of productivity—an increase of fourfold, while potentially boosting global GDP by 5 percentage points, as noted by investor Cathie Wood during her TED Talk on the economic explosion AI could spark.
Image source: ChatGPT image generator
Globally, AI is penetrating every industry, becoming an enduring force reshaping our future. The World Economic Forum even likens generative AI to historical milestones like the steam engine and the printing press.
Charting the African AI Landscape
In Africa, it is estimated in a recent report that embracing AI could swell our economy by an astonishing $1.5 trillion, about 50% of the current GDP, if we could capture just 10% of the swiftly expanding global AI market expected to hit $15.7 trillion by 2030.
Beyond the Hype
However, many African regions are not ready to leap fully into AI. Rose Mutiso, Research Director at the Energy for Growth Hub, emphasizes the significant hurdles: "Lack of access to electricity, internet, and data scarcity in the continent pose considerable challenges to AI adaptation when compared to the rest of the world." With only 36% of Africa's population having access to broadband internet, these infrastructure gaps are critical areas for improvement.
Why AI Matters Now for Africa
Here’s the reality: We’re at a critical juncture. The reason I’m excited about the AI age is that even if we leverage a fraction of AI technology, the democratization of technological advancements provides us with an opportunity to re-imagine new possibilities and re-shape our future in Africa. The accessibility of generative AI tools empowers anyone, even those without coding skills like me, to automate processes, generate code and content, analyze complex data, and generate insightful visualizations simply through conversational AI tools.
Africa stands at a pivotal moment where if we unite efforts across government and private sectors to make meaningful and robust investments, we can craft a future where Africa is not just participating in the global digital economy as consumers, but actively shaping it to become producers and net exporters of the technologies and products we use.
The Impact of AI on Business
AI isn't just transforming consumer technology; it’s revolutionizing how businesses operate, enhancing process efficiencies, increasing employee productivity, and enabling the creation of personalized customer experiences and new products and services.
Examples of AI use cases in Business
Image source: Motley Fool
Industry leaders like Lawrence Muthoga, formerly of Microsoft Africa and now at AWS Sub-Saharan Africa, describe AI as a technology that extends human capabilities and transforms organizations.
Platforms like AWS are making it easier for businesses to integrate AI across various functions including marketing, customer service, and operations. Consumer technologies like ChatGPT, Dalleo, and CodePilot are boosting productivity through content and code generation.
For instance, AI agents in retail and logistics can troubleshoot, reschedule deliveries, and manage inventory effectively with just simple integration and a few clicks. Google Gemini Pro demonstrates this by enabling users to search, shop for products e.g clothes and find specific products they can buy through video inputs, showcasing a practical application of AI in daily operations.
What’s Next?
This newsletter is a 5-part AI series of understanding AI’s potential in Africa. Whether you're a creator, a career professional, or a business leader, the next steps involve
exploring AI's applications specific to your industry,
understanding governance in an AI-driven world,
and determining AI's value to your business.
Stay tuned for our next issue, where we’ll dive deeper into these topics, offering you tailored insights and actionable strategies.
Thank you for joining this journey into AI. Let's embrace this transformative technology to propel Africa forward on the global stage.