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Africa: excellent economic prospects with artificial intelligence

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The question is not whether Africa will benefit from artificial intelligence (Ai) for its development, but just how quickly this will happen. Much depends on the push that African tech companies themselves will be able to give. This is the conclusion of an article signed by some experts of the consulting firm BCG (Boston Consulting Group) entitled “Developing an Artificial Intelligence for Africa Strategy” published on the blog of the Organization for Economic Cooperation and Development, OECD -Development Matters, and still current.

According to the authors of the article, Ai, understood as a set of computer systems capable of replacing human beings by providing automated solutions in various fields, will certainly help the African continent in the future to tackle the socio-economic problems that afflict it. However, before reaching a large-scale application, AI in Africa still has to overcome several obstacles such as underfunding, lack of large amounts of data and the scarcity of specialized local talent.

A more recent report on the state of Ai in Africa (“State of Ai in Africa 2022 Report”) published by the Ai Media Group, however, shows that African entrepreneurs remain optimistic about the future of this technology as a lever for the continent’s development. The predictions contained in the report appear to be on the investor side; analysts say AI could grow Africa’s economy by $1.5 trillion by 2030, about 50% of its current gross domestic product, if it managed to capture even 10% of the global market for the sector. A market that, according to Pwc forecasts, will be worth 15,700 billion dollars by the end of the decade. With this in mind, funding has also increased exponentially in Africa in the last ten years. Investments in artificial intelligence have in fact attracted $500 million from 120 companies in twelve different countries in the region.

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There are currently over 2,400 African companies specializing in artificial intelligence. While this number looks promising, other data reveal a market with still plenty of room for growth. 40% of these companies are less than five years old and 34% of the companies using artificial intelligence are medium-sized companies with fewer than 100 employees, while 41% are startups with fewer than ten workers. Testimony of a young sector with unexpressed potential, where, however, there seems to be a lack of an adequate group of large African companies to lead the climb.

Furthermore, the adoption of AI is not linear across Africa. There are four countries that use it the most, namely Egypt, South Africa, Nigeria and Kenya: the same ones that are already ahead of all the others for the use of new technologies in general. For the number of companies specializing in AI, South Africa clearly leads with 726 businesses, followed by Nigeria with 456, Egypt with 246 and Kenya with 206. Together they boast 66% of the total in Africa. [Da Redazione InfoAfrica]

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Read the Zoom of Africa and Business on the development boost that artificial intelligence will bring to Africa: https://www.africaeaffari.it/rivista/riscoprire-il- Valore-del-caffe

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