Africa’s $103B AI Opportunity: Can the Continent Catch the Wave?

According to a recently released McKinsey report, generative AI can unlock a staggering $103 billion annually for Africa if deployed at scale. The report estimates that over 40% of institutions on the continent are already exploring AI tools. Examples include Kenya’s use of the technology to develop personalized educational curricula and South Africa’s application to small business solutions. The McKinsey report noted that Africa’s retail sector holds the greatest potential for generative AI-supported growth, followed by travel, education, and construction. However, tapping into this windfall won’t be easy, as the continent’s gaps in infrastructure, AI expertise, and regulatory frameworks threaten to stall progress. Consequently, Africa will have to improve its infrastructure – provide stable electricity, robust cloud access, and regional investment – to fully capitalize on the opportunities offered by generative AI.