The Rise of AI in African Businesses

After the introduction of OpenAI’s ChatGPT on November 30, 2022, which was a groundbreaking achievement, there has been a significant rise of AI in African businesses.

Since the launch of ChatGPT, many AI technologies have come into existence, taking over almost all sectors, including customer service, data analytics, web development, and real estate, all aimed at improving productivity and scaling operations.

This article will discuss the rise of AI and how AI is helping African establishments by providing use cases, successful implementation, challenges, and opportunities available in African businesses.

Applications of AI in African Businesses

1. Healthcare

AI is proving to be of great value in the healthcare industry. Hospitals now use AI for managing patient data like patient scheduling, billing, and record-keeping, allowing more time for healthcare providers to focus more on providing patients with needed care.

Doctors now make use of AI to analyze X-rays, MRIs, and CT scans, and their results have been remarkable. Another area is using AI-powered chatbots to engage with patients at the convenience of their home, and in some cases, the chatbots prescribe medication as a doctor would have normally done.

2. Finance

The finance industry was not left behind in the revolution, as AI is being used for fraud detection by flagging fraudulent transactions and also in KYC identity verification by matching facial scans with the database of government-issued IDs to ensure a match and accuracy in the provided information.

3. E-commerce and Retail

AI models are trained to match user buying behaviors, which in turn is used to provide products based on the customers buying habits.

Have you ever searched for an item in an online marketplace such as Jumia and when you scroll through your social media you see advertisements about that particular product you searched? That is a clear example of AI at work.

4. Logistics and Transportation

AI, in the case of Uber, is used to match users to drivers in their specific locations. It makes for a smooth ride by providing shorter routes without traffic congestion or damaged roads.

Case Studies

Diagnostics of TB in Mozambique

In Mozambique, healthcare workers tested AI to detect tuberculosis (TB) in a high-security prison. They used portable X-ray machines linked to an AI program, which diagnosed the disease in under five minutes with accuracy comparable to that of doctors.

“This was the first time this AI method was proven effective in prisons. Now, it needs to be expanded to everyone in need, and eventually to the entire country,” said Suvanand Sahu, Deputy Executive Director of StopTB, who led the project.

TB remains a significant health issue. According to the WHO, 10 million people develop TB globally each year, yet around three million don’t receive the necessary medical care.

Challenges and Opportunities

Despite AI presenting sustainable solutions, improving productivity, and scaling operations, so many challenges are still affecting it’s smooth utilization in Africa.

1. Digital Literacy

According to Statista, around four out of 10 people in Africa had internet access in December 2021. The internet penetration rate on the continent was below the global average, measured at around 68 percent. Only 50 percent of countries in Africa have ‘computer’ skills as part of their school curriculum, compared to 85 percent of countries globally, according to a report by the World Bank.

This data shows that despite the penetration of AI in African businesses, a vast majority of the population wouldn’t still have access to them because of the lack of knowledge needed to operate these technologies.

2. Set Up Cost

Startups with low or zero funding will have difficulty implementing various AI models needed for their business to thrive.  The cost of implementing many AI tools into systems is relatively expensive, thereby posing a great challenge in its implementation.

Opportunities

Due to the fact that AI hasn’t fully penetrated most African businesses, this provides an avenue for early adopters to take advantage by implementing AI innovations and technologies into their businesses, thereby paving the way for an opportunity to lead the market.

Conclusion

The rise of AI in African businesses is a growth that has proven to be exponential in the coming years. These innovations and more to come will enable African businesses and give them more opportunity for international competition.