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PwC flags Africa’s weak returns from AI

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • A PwC report reveals that while most African organizations are adopting AI, they struggle to achieve measurable business impact, lagging behind global leaders.
  • Over 82% of African companies are running AI pilots, but few have successfully scaled the technology for sustained growth or competitive advantage.
  • African companies risk limiting AI's value by focusing solely on efficiency rather than exploring opportunities for growth, market expansion, and new business models.

A recent study by PwC highlights a critical challenge facing African businesses: the gap between adopting artificial intelligence and realizing tangible business outcomes. While the continent shows a strong appetite for AI, with over 82 percent of organizations engaged in pilots or experimentation, the translation into enterprise-wide impact remains elusive. This suggests a potential disconnect in strategy, where the focus is on exploration rather than integration for sustained growth.

Africa’s challenge is both adopting AI at scale and implementing it fast enough to remain competitive.

— Dion ShangoPwC Africa CEO on the continent's struggle with AI implementation.

PwC Africa's CEO, Dion Shango, emphasizes that the continent's challenge is not just adoption, but the speed and effectiveness of implementation to stay globally competitive. The research indicates that many African firms treat AI as a series of isolated projects instead of embedding it into core operations. This 'pilot-heavy' approach, while building familiarity, often falters without robust governance, infrastructure investment, and organizational redesign.

While more than 82 per cent of organisations are running AI pilots, this is not yet translating into enterprise-wide impact.

— Dion ShangoPwC Africa CEO highlighting the gap between AI experimentation and business results.

The report, authored by PwC West Market's Consulting and Risk Services Leader, Olufemi Osinubi, warns against a narrow focus on AI for operational efficiency alone. The true potential, he argues, lies in leveraging AI for growth, entering underserved markets, and pioneering new business models. Furthermore, PwC identifies industry convergence as a significant underutilized opportunity, noting that African organizations are less likely than their global counterparts to collaborate across sectors to build comprehensive digital ecosystems. This presents a unique challenge and opportunity for Nigeria and the wider continent to foster cross-industry innovation.

Focusing AI only on efficiency is a narrowing strategy. The real opportunity lies in using AI to unlock growth, expand into underserved markets, and create entirely new business models.

— Olufemi OsinubiPwC West Market Leader on the strategic potential of AI beyond operational efficiency.
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Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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