Microsoft Believes AI Can Truly Inject $1.5 trillion into Africa’s Economy

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Vera Songwe, the United Nations (UN) Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA), made an argument that Africa could expand its economy by a staggering USD$1.5 trillion dollars, by capturing just 10% of the speedily growing artificial intelligence (AI) market, set to reach USD$15.7 trillion by 2030.

Tech giant, Microsoft, believes the possibility of actualizing this result and reiterated that AI will revolutionize the way businesses are done across the African continent.

The company explained that the revolution transcends mere technological advancement.

Microsoft added that AI marks a strategic turning point wherein it will be leveraged as a catalyst for sustainable growth and chart a course towards a future brimming with innovation and boundless opportunity for Africa.

Theo Watson, a commercial lawyer with Microsoft Africa, in his presentation, “AI Opportunity in Africa” at the African AI Journalists Academy via Microsoft Team, emphasized the opportunities AI could bring to Africa.

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Watson said that of the USD$15.7 trillion AI could generate, USD$1.2 trillion could be generated in Africa.

He noted that the USD1.2 trillion represented a 5.6 per cent increase in the continent’s GDP by 2030.

Watson, however, emphasised the need for responsible regulation of Artificial Intelligence (AI) to accelerate its opportunities and reap its benefits.

According to him, as the world navigates this AI-powered future, our journey must be underpinned by responsible and sustainable innovation.

He said that this would ensure that the progress of AI in the nation remained aligned with human values and societal norms.

“Responsible and sustainable innovation will ensure that AI progress aligns with the needs that define Africa’s vastly diverse cultures.

“This involves a deep engagement with the continent’s unique challenges, recognising their complexity and prioritising those that AI can help solve.

“Also, collaborating with relevant stakeholders will be key to ensuring that AI solutions are not just technologically advanced but also culturally attuned and genuinely beneficial to Africa societies,’’ the Watson said.

In a recent whitepaper, Lilian Barnard, president, Microsoft Africa, argued that the continent already has the youngest population in the world, and will soon be home to one in five of the world’s consumers.

She argued that the ability to leverage such a powerful tool to help businesses understand and better cater to the unique needs of Africa’s burgeoning consumer base through data analytics could be game changing.

“It could also empower a young workforce with AI-driven educational tools, enhancing their skills and future employability. From agriculture to health care, AI is expected to enable faster and more profound progress in nearly every field of human endeavor and help address some of society’s most daunting challenges,” Barnard said.

During the session moderated by Ayanda Ngcebetsha, director:  Data and AI at Microsoft South Africa, the team stressed that collaborating with relevant stakeholders will be key to ensuring that AI solutions are not just technologically advanced but also culturally attuned and genuinely beneficial to African societies.

In her article contribution towards AI development in Africa, Akua Gyekye, Government Affairs Director, Microsoft Africa, said the world was changing and industries are transforming rapidly and drivers of economic growth are evolving.

Gyekye said that technology was addressing socioeconomic delivery issues, such as health, education, and agriculture among others, adding that the impact was real.

According to her, eThekwini Metropolitan Municipality in South Africa is leveraging AI to reduce water wastage and provide innovative water and sanitation service to its growing population.

“Farmers in Nigeria and Kenya are getting customised advice on farming based on AI, advice on soil and weather data”, Gyekye added.