The Corporate AI Race

African businesses risk missing out on the full benefits of the artificial intelligence revolution, experts say. Global consulting firm PwC estimates AI could contribute up to $15.7 trillion to the world economy by 2030, yet Africa is projected to capture only a tiny fraction of that total. As companies worldwide rush to adopt new AI tools, it raises questions of whether African firms are truly innovating or merely playing catch-up.

In an interview on the morning express show on No Hits Radio, Michael Michie an AI consultant and co-founder of Everse Technology Africa, argued that Africa should pursue practical homegrown applications of AI rather than competing with the industry’s giants. “We shouldn’t be in that race,” Michie says, noting that the continent lacks the infrastructure, talent and data to compete at that level. Instead, he believes countries should invest in affordable AI infrastructure and localized solutions “as opposed to joining the benchmarking race”

Several African governments have introduced their own AI strategies, and tech leaders insist Africa’s AI revolution is already in motion. Generative AI, the technology behind ChatGPT is seen as especially promising. It could “create jobs, innovate and help drive economic growth across the continent,” according to Microsoft Africa’s CTO Ravi Bhat.

But making that happen will not be easy. One major hurdle is infrastructure, in many regions, reliable broadband and cloud services remain scarce, making it hard to run AI systems. Another obstacle is the lack of high-quality digital data, much information is still on paper or siloed in legacy systems. Companies will need to invest in digitizing and consolidating data, and collaborate with governments and industry groups to build shared repositories.

A third challenge is the talent gap. While the pool of African data scientists and engineers is growing, it remains far below what’s needed. Strengthening this talent pool demands consistent, long-term effort, producing more STEM graduates, providing on-the-job AI training, and forming partnerships with universities and tech firms to nurture expertise. Involving diverse specialists (e.g. linguists, social scientists) in AI teams can also help ensure solutions fit local languages and cultures.

As AI use grows, companies are urged to mind governance and ethics. Some global firms now appoint chief AI officers or board committees to oversee strategy. African businesses could set up their own AI “centers of excellence” or ethics panels to set guidelines on data privacy, bias and security. Leaders need a basic grasp of AI’s capabilities and pitfalls to manage it responsibly.

Experts suggest beginning with a few pilot projects targeting urgent needs. For example, a bank could deploy AI to detect fraud or a retailer to personalize marketing, but each pilot should have clear metrics (such as cutting fraud losses by X percent or boosting sales leads by Y percent), with results tracked closely.

A strong data foundation is also crucial, for instance, investing in cloud platforms, hiring data engineers to clean datasets, and partnering externally to fill gaps. Preparing people is equally important. Firms can run in-house AI bootcamps, collaborate with universities on training, and recruit from underrepresented groups to broaden their teams’ skills.

Companies should also establish basic rules for AI use; policies for data privacy, transparency and fairness and conduct regular reviews of AI initiatives. Challenges aside, momentum is building. Businesses that move quickly by redesigning processes around data, investing in skills and infrastructure, and enforcing ethical guardrails could leapfrog competitors and unlock new growth. With the right approach, AI could become a true engine of innovation and job creation across Africa.

But is Africa ready to rewrite the rules of the AI game, or will it stay a step behind? AI expert Michael Michie shares the real story, the challenges, the opportunities, and why sometimes it’s smarter to take your own path instead. Catch the full conversation on No Hits Radio Page.