A recent study conducted by the research consultancy Public First has indicated that Artificial Intelligence (AI) has the potential to add over $30 billion to Africa’s economy within the next ten years.
Commissioned by Google, the report highlights the transformative capabilities of AI and other emerging digital technologies, including cloud computing, in fostering economic growth and tackling significant challenges throughout the continent.
The applications of AI are extensive, ranging from improving healthcare outcomes to boosting agricultural efficiency, showcasing its remarkable potential to stimulate growth and address some of Africa’s most urgent issues.
For example, the report points out that AI can enhance healthcare by offering more precise diagnostics and treatment alternatives, as well as increasing agricultural productivity through advanced data analytics and precision farming methods.
“The future of Africa’s digital economy is promising and filled with opportunities thanks to AI,” the report asserts.
Increase in internet access
Additionally, the report examines connectivity trends in Africa, noting that Sub-Saharan Africa is entering a “digital decade,” with more than half of the region’s population anticipated to gain internet access.
This increase in connectivity, along with the rising use of digital tools, presents substantial prospects for economic advancement.
The research indicates that even a modest 1% rise in internet connectivity could elevate GDP by nearly 6%, highlighting the vital role that digital technology will play in shaping the continent’s future.
Google’s impact
The report indicates that in 2023, Google’s platforms—including Search, Maps, and YouTube—contributed $16 billion to economic activity in the region.
“This highlights the significant role these platforms play in promoting growth, connectivity, and opportunities.
“Additionally, Google’s $1 billion investment, announced in 2021, continues to improve connectivity, stimulate innovation, and support local entrepreneurs throughout the continent,” the report stated.
- The report also emphasizes the critical need for skills development to unlock Africa’s economic potential, noting that in 2023, Google’s Developer Scholarships and Digital Skills for Africa initiatives trained over 6.5 million individuals, leading to a $7.8 billion increase in productivity.
- It points out that these newly acquired skills have empowered individuals and businesses to operate more effectively and expand their activities, thereby enhancing overall economic output.
- Furthermore, 60% of young adults in Sub-Saharan Africa have utilized Google Search to seek employment, further illustrating the influence of digital tools in fostering successful careers within the digital economy.
- Additionally, it emphasizes the necessity for African nations to bolster STEM education, encourage AI literacy, and provide avenues for lifelong learning.
- The report also advocates for the creation of high-quality, diverse datasets to foster responsible AI development, alongside the establishment of regulations that harmonize innovation with ethical standards.