Artificial intelligence is spreading fast across Nigerian businesses, and it is not coming at the cost of privacy. A new survey conducted by Arion Research on behalf of Zoho reveals that 93% of Nigerian organisations have already adopted AI, with more than 31% operating at an advanced stage.
Instead of eroding safety, 84% of these businesses report stronger privacy initiatives since integrating AI into their operations.
The findings, titled The AI Privacy Equation: The Nigerian Model of Responsible AI Adoption and unveiled at Zoholics Nigeria, revealed Nigeria as a global reference point for AI adoption balanced with privacy.
Beyond AI adoption and privacy focus, the event also celebrated another milestone for Zoho, which announced a 75% customer growth in Nigeria in 2024, one of its fastest-growing markets worldwide.
“We continue to invest in Nigeria as businesses here accelerate their adoption of technology to grow and scale,” said Kehinde Ogundare, country head, Zoho Nigeria.
“The latest study around AI and Privacy proves that Nigerian businesses are leading the way in responsible AI adoption, as they temper the new technology with privacy measures. This mirrors Zoho’s philosophy of building contextual and privacy-first AI models that can help businesses realise tangible benefits. We infuse our AI solutions—from conversational and prescriptive to agentic and generative—with business context so that it can provide organisations with decision intelligence.”
Balancing AI With Privacy
The study, which surveyed 386 Nigerian business leaders, shows how companies are embedding AI responsibly. Ninety-four percent now have a dedicated privacy officer or team, a figure well above global averages.
Nearly 40% allocate over 30% of their IT budgets to privacy protection, opining that governance is not a constraint but a competitive advantage.
Michael Fauscette, CEO and chief analyst of Arion Research, underscored this shift:
“The Nigerian model challenges the conventional wisdom that AI adoption requires privacy trade-offs. When 84% of organisations strengthen their privacy measures through AI implementation rather than weakening them, it demonstrates that privacy-conscious design can actually enhance AI outcomes. Nigerian businesses are proving that robust governance isn’t a constraint on innovation, it’s a competitive advantage.”
Leadership and Deployment
More than half of survey respondents were CEOs or senior executives, showing that AI adoption is being driven from the top. Unlike other markets where implementation lags, Nigeria is moving quickly from pilots to enterprise-wide rollouts.
Thirty-one percent of businesses reported advanced integration across the organisation, while another 26.5% are deploying AI across multiple departments.
The financial services sector, which accounted for 29% of respondents, is leading the charge. Customer service automation (49%), software development (46%), and marketing optimisation (32%) are the top use cases, all designed with privacy-by-design principles.
Skills, Barriers and Regulation
On challenges, despite rapid adoption, thirty-seven percent of companies revealed a lack of technical expertise as their biggest challenge, followed closely by privacy and security issues (35%).
To close this gap, 69% of businesses are prioritising data analysis and interpretation, 53% are focusing on AI literacy, and 40% are investing in prompt engineering for generative AI.
Regulation is also impacting behaviour. Nearly 65% of organisations say awareness has increased since Nigeria’s Data Protection Act was introduced. Many conduct regular privacy audits (57%), minimise data used in AI training (57%), and require explainability of AI decisions (52%).
Why it Matters to Zoho
For Zoho, these findings on AI adoption and privacy, align directly with its positioning. The company has consistently rejected data monetisation in favour of privacy-first design, a stance that resonates with Nigerian businesses now investing heavily in privacy-conscious AI.
Zoho’s growth in Nigeria is being driven by demand for scalable, unified solutions. Its top-performing products in the country include Zoho Workplace (enterprise email and collaboration), Zoho Books (accounting software), Zoho Campaigns (marketing automation), and Zoho One (a suite of 55+ integrated business applications).
Key customer sectors include IT services, financial services, energy, manufacturing, real estate, media, education, and retail.
In tying AI adoption to privacy protection, Nigerian businesses are gaining global competitive advantage, and for Zoho, this validates its belief in Nigeria, both as a high-growth market and as a model for how technology and trust can advance together.
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