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African AI adoption too slow, PwC warns

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KEY POINTS


  • PwC warns African firms risk missing the AI boom without scaling beyond pilots.
  • 82 percent run AI pilots, but few reach enterprise-wide adoption.
  • African firms invest 2 percent of revenue in AI versus 5 percent for global leaders.

African AI adoption is moving too slowly to catch the global boom, PwC has warned, unless companies scale the technology far beyond small pilots. CEO Dion Shango said firms must deploy the “right AI” across their operations rather than stop at isolated experiments. Meanwhile, he stressed that speed now separates the winners from the rest.

What is slowing African AI adoption

PwC released its latest AI performance findings in Lagos, and the figures show a clear gap. Specifically, 82 percent of organizations across the continent now run AI pilot programs. However, few have scaled the technology enterprise-wide to deliver measurable impact. Therefore, PwC argues that experimentation alone will not keep African firms competitive. The gap is not really about awareness, since most boards already discuss AI. Instead, it reflects how few firms have moved from testing to full deployment. As a result, the continent captures only a fraction of the value that AI can deliver.

Shango framed the challenge bluntly. “Africa’s challenge is both adopting AI at scale and implementing it fast enough to remain competitive,” he said. Moreover, he added that the firms that win “are not those running the most pilots, but those that scale the right AI to transform how they create value.”

A widening investment gap

The report also exposed a funding shortfall. On average, African firms invest just 2 percent of revenue in AI, while global leaders commit 5 percent. Additionally, only 32 percent of executives believe their current spending is enough. Consequently, many companies risk standing still as rivals abroad pull ahead. Funding, moreover, often arrives as small, one-off projects rather than steady budgets. Without sustained money, teams struggle to move promising tools out of the lab and into daily operations.

Olufemi Osinubi, Consulting and Risk Services Leader at PwC West Market, said firms often aim too low. Indeed, he noted that many still chase cost-cutting and productivity gains rather than new revenue. “Focusing AI only on efficiency is a narrowing strategy,” he said. “The real opportunity lies in using AI to unlock growth, expand into underserved markets, and create entirely new business models.”

Turning weakness into advantage

Christopher Ogirri, Chief AI Officer at PwC Nigeria, offered a more hopeful view. While Africa’s markets remain fragmented and its infrastructure thin, he said those gaps could become strengths. Specifically, he urged organizations to build AI-driven ecosystem partnerships that pool data, talent and reach. Together, such alliances could help smaller firms compete with far larger global players.

The wider message from PwC is direct. Now, the firm wants African boardrooms to treat AI as a growth engine, not a side project. Specifically, it says companies should pick a few high-value uses, fund them properly, and scale them fast. However, that shift demands bolder budgets and quicker execution. Therefore, the choice for many companies is stark: scale the right AI now, or watch the boom pass them by.

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