Africa can grow faster with AI

A farmer in Kenya gets weather and planting advice on a basic phone. A teacher in Nigeria uses a chatbot to help students catch up in math. South Africa’s revenue authority uses data analytics to better target tax audits. These are not futuristic examples from Silicon Valley. They are early signs of the broader transformation that artificial intelligence (AI) could bring to sub-Saharan Africa.

AI will reshape the global economy. The question for Africa is whether it rides the wave or gets left behind. Our research shows AI’s promise, but it also points to significant risks and challenges.

At current levels of preparedness, we estimate that AI will add just 0.2% to the region’s GDP over the next decade, little more than a rounding error.

However, if countries can put the right foundations in place to accelerate adoption and extend the impact of AI beyond today’s digitally connected firms, the gains could rise to about 4% over the decade, nearly half a percentage point of additional growth a year.