Article by Mayowa Kuyoro, Umar Bagus: “The rapid rise of gen AI has captured the world’s imagination and accelerated the integration of AI into the global economy and the lives of people across the world. Gen AI heralds a step change in productivity. As institutions apply AI in novel ways, beyond the advanced analytics and machine learning (ML) applications of the past ten years, the global economy could increase significantly, improving the lives and livelihoods of millions.1
Nowhere is this truer than in Africa, a continent that has already demonstrated its ability to use technology to leapfrog traditional development pathways; for example, mobile technology overcoming the fixed-line internet gap, mobile payments in Kenya, and numerous African institutions making the leap to cloud faster than their peers in developed markets.2 Africa has been quick on the uptake with gen AI, too, with many unique and ingenious applications and deployments well underway…(More)”.
Across McKinsey’s client service work in Africa, many institutions have tested and deployed AI solutions. Our research has found that more than 40 percent of institutions have either started to experiment with gen AI or have already implemented significant solutions (see sidebar “About the research inputs”). However, the continent has so far only scratched the surface of what is possible, with both AI and gen AI. If institutions can address barriers and focus on building for scale, our analysis suggests African economies could unlock up to $100 billion in annual economic value across multiple sectors from gen AI alone. That is in addition to the still-untapped potential from traditional AI and ML in many sectors today—the combined traditional AI and gen AI total is more than double what gen AI can unlock on its own, with traditional AI making up at least 60 percent of the value…(More)”