AI Opportunities in Africa: Insights from Noteya Innovations

February 25, 2025

Yair Lezer, Partner at Noteya Innovations, discussed with TechEdge AI the opportunities for AI in Africa along with his assessment on how its application can have the most impact on new technology deployments across the continent.

AI adoption across Africa is growing steadily, although it remains varied across different applications of the technology.

For example, on an individual level – like many places around the world – ChatGPT and other AI-powered content generation tools are widely popular among Africans. The same can be said for similar AI-driven tools for creating presentations, graphic design, social media posts and the like.

However, wider and more complex applications of AI at the enterprise level are currently rolling out at a much slower pace. In general, Africa is typically a late adopter of the latest technology innovations and this is certainly true for AI.

Despite this, AI holds the potential to reshape many sectors in Africa and provide important benefits to large segments of the population.

Which sectors in Africa in your view hold the most potential to benefit from AI?

Financial services, healthcare and public safety are among the initial sectors in Africa that will widely benefit as AI-driven capabilities are often embedded into the platforms and equipment now supporting organizations in these industries.

Banks and financial service providers, for instance, have started to leverage AI for fraud detection. This is an important initiative considering that the fintech sector in Africa is booming and large segments of the population manage their banking and financial affairs from their mobile devices.

In healthcare, AI can bridge gaps in medical expertise and resources, particularly in remote areas. AI-driven tools for diagnostics and telemedicine can improve healthcare accessibility and outcomes.

For security and public safety, AI-powered surveillance and facial recognition can be leveraged across the continent to enhance law enforcement and border security.

Agriculture, transportation and energy are additional sectors in Africa that hold significant potential to benefit from applications of AI.

What role can AI play in digital transformation initiatives in Africa?

Digital transformation in Africa is steadily advancing, driven by mobile technologies, fintech innovations and the emerging availability of cloud computing. Mobile money and digital banking are leading the way in many regions, making access to financial services widely more inclusive to previously underserved population segments. Governments are also increasing investments in digitization with many public services gradually becoming based on smart infrastructure.

AI holds the potential to be a key enabler of digital transformation initiatives across Africa. The correct applications of AI can help businesses and governments overcome development barriers that have traditionally plagued new technology deployments in Africa and allow these organizations to roll out smarter, highly automated and efficient digital transformation projects.

What are the biggest challenges impacting AI adoption on the continent?

While AI has enormous potential across many sections, its success in Africa will depend on overcoming many ongoing and new challenges.

First off, inconsistent internet connectivity and frequent power outages along with the limited availability of data centers all present challenges for deploying AI solutions effectively.

Similarly, data quality is another ongoing challenge in Africa. AI systems rely on large, high quality data sets, but Africa faces issues with inconsistent data standardization and collection, especially in the healthcare and government sectors.

In many African countries, there is a significant lack of skilled AI professionals, including data scientists and machine learning engineers. While AI training programs are being developed in many regions, the talent gap remains a major hurdle.

In addition, we see that many organizations in both the private and public sectors are still unfamiliar with AI, leading to skepticism and slower adoption rates. This is common in traditional industries with low levels of digitalization, including manufacturing and agriculture.

At the same time, organizations in Africa tend to have limited resources and budgets. This makes the high costs of AI implementations along with uncertain understandings of the return on investment difficult for many decision makers to justify.

What key factors should international AI-related technology vendors consider when entering African markets?

In general, technology vendors should be aware that the costs of penetrating markets in Africa are higher than other regions. Sales cycles tend to be longer and organizations have less budgets available for acquiring the latest technology innovations.

Due to the lower awareness of AI in Africa, technology vendors will need to invest in a more involved education process. This will extend the sales process and may require more training and longer proof-of-concept trials.

Another important factor is that African countries prioritize job creation. So, pitching AI as a tool for reducing staffing requirements is not an appropriate strategy. Instead, vendors should emphasize how AI can enhance productivity, support local talent and create new economic opportunities rather than replace jobs.

What advice would you give to African organizations looking to adopt AI-driven systems for the first time?

AI is a smart, accurate and fast technology, although it should be remembered that it is only a tool and its success depends on how well humans understand, implement and manage it. AI can greatly improve decision making and automate processes, but it requires human oversight and strategic direction. Organizations must invest in training employees to effectively use, interpret and optimize insights gained from their AI initiatives. This will greatly impact how organizations in Africa can maximize the benefits their investments in AI will deliver.

To read the original article, please visit Tech Edge AI.