Africa's innovation opportunity

The adoption of Artificial Intelligence (AI) in Africa is slowly gaining momentum, with manufacturing, retail, and supply chain sectors leading the way. While these industries have been quick to embrace AI, other sectors are still playing catch-up on the continent. In a recent interview with CNBC Africa, Ngugi Karega, CEO of Skizaa AI, shed light on how African businesses are fairing in the wake of disruptive technological developments. Karega drew an interesting parallel between the introduction of AI and the advent of the tractor in the 19th century. He highlighted how farmers were initially apprehensive about tractors, fearing job losses and high costs. However, as with tractors, AI has the potential to significantly impact operations and reduce labor costs. Karega emphasized that forward-thinking business leaders in Africa are embracing AI, despite initial concerns and apprehensions. The key outcomes they are looking at are driving operational efficiency and increasing revenues. He pointed out that AI is not just a tool but a multiplier that can transform businesses. Companies with small teams can operate as if they have a much larger workforce by leveraging AI technology. Karega also addressed how SMEs in Africa can leverage AI to grow their businesses. He stressed the importance of adaptation and highlighted the multiplier effect that AI can have on small businesses. By incorporating AI tools and data analytics, SMEs can enhance their operations, predict demand, and improve customer segmentation. However, Karega noted that human input is still essential in the AI process, and businesses need to find a balance between automation and human oversight. One of the challenges facing AI adoption in Africa is the issue of bias in algorithms. Localizing AI tools and reducing biases in AI models remain significant hurdles for the continent. The lack of usable and structured data in Africa poses a significant roadblock to developing localized AI models. However, efforts are being made to address these challenges and make AI more accessible and cost-effective for businesses of all sizes. AI experts are working on creating cheaper and more accessible models that can be customized to suit the African market. In terms of industries adopting AI in Africa, manufacturing, retail, and supply chain sectors are leading the way. These industries are leveraging AI to automate data aggregation processes and improve decision-making. By automating tasks like data fetching, structuring, and labeling, AI is streamlining operations and freeing up engineers to focus on more strategic tasks. Looking ahead, the impact of AI adoption on African businesses is likely to be significant. As more industries embrace AI technology, we can expect to see increased efficiency, improved decision-making, and enhanced competitiveness in the global market. While challenges remain, the enthusiasm and optimism surrounding AI in Africa are promising signs of a tech-savvy future for the continent.