The Influence of Artificial Intelligence on the Business Economy in Africa

April 12, 2024

The Influence of Artificial Intelligence on the Business Economy in Africa

HIGHLIGHT



Over the past three years, artificial intelligence (AI) has experienced significant development and interest globally. Despite scepticism, AI's exponential growth and diverse applications in finance, data analysis, programming, and creative domains make it a legitimate driving force in the global technological landscape, transforming work and human development.


As this seemingly new technology continues to grow and evolve, some fears have been raised by individuals in society, especially those dealing with FOMO. AI fears, such as job loss, intellectual property misuse, and personal data breaches, are prevalent in daily news. However, these fears often stem from universal fears associated with technology advancements, such as not understanding new technologies, being left behind by "smarter" individuals, or being perceived as outdated.


But irrespective of the fears, businesses are increasingly making use of AI to enhance their operations, with 56% using it for customer service and 51% for cybersecurity and fraud management according to Forbes Advisor. Other applications include customer relationship management, digital personal assistants, inventory management, content production, product recommendations, accounting, supply chain operations, recruitment, and talent sourcing. AI is also enhancing customer experiences across touchpoints, with 73% using chatbots for instant messaging, 61% optimizing emails, and 55% deploying it for personalized services. This integration leads to more efficient and personalized customer experiences.


A synergy is emerging between Artificial intelligence (AI) and blockchain. The Internet Computer Protocol (ICP), is a blockchain that has propelled the development of Blockchain Decentralized Applications (DApps) to unprecedented heights.


The integration of AI and ICP in blockchain DApp development in Africa offers numerous benefits. AI-powered algorithms can optimize resource allocation, data management, and user experience, leading to more efficient applications. AI can also be integrated into smart contracts on the ICP network, enabling automated decision-making based on real-time data analysis, this can positively advance the business economy in Africa.


AI, as we have seen in recent times has come to stay, reshaping our world in numerous ways we couldn't have imagined. But this is not something innovators need to be scared of, its ability to generate new solutions and resolve existing inequalities is evident and is a quality that can be leveraged and maximised for efficiency in any industry.


The journey ahead is filled with a lot of opportunities and also challenges, but Africa stands at the threshold of this AI revolution, and we are transitioning towards an era of significant growth and development in our business economy.