The report, Decoding ROI from AI in Africa, highlights a significant confidence gap between African businesses and global AI leaders, where 60 per cent of organisations say employees trust AI-generated recommendations for decision-making.

PwC warns that this lack of trust could slow the continent’s ability to unlock the full value of AI at a time when the technology is rapidly reshaping industries and competitive advantage.

The study found that while AI experimentation is becoming widespread across Africa, many organisations remain cautious about integrating AI into core business processes.

As a result, companies risk missing out on productivity gains, new revenue opportunities, and business transformation benefits being realised by firms that have successfully embedded AI into decision-making and operations.

According to PwC, the trust challenge is emerging alongside another critical issue: underinvestment. African organisations currently allocate a median of just 2 per cent of revenue to AI initiatives, compared to 5 per cent among the world’s leading AI-driven companies, limiting their ability to scale successful projects beyond pilot stages.

According to the report, the world’s most AI-savvy companies are generating 7.2 times higher returns from artificial intelligence investments than their peers, even as more than $7 trillion in enterprise value shifted across industries globally in 2025, according to a new report by PwC.

PwC said the top 20 per cent of firms with the strongest AI capabilities currently capture 74 per cent of all AI-driven financial returns globally, highlighting the growing concentration of value among companies that are scaling AI aggressively.

“Findings from the study show that the most AI-fit companies generate 7.2 times greater AI-driven performance than others on an industry-adjusted basis. They capture more AI-driven revenue growth, achieve greater efficiency and cost improvements, and realise more substantial operating model transformation,” the PwC report added.

The study, which surveyed 1,217 large organisations worldwide, including 85 in Africa, found that companies generating the strongest AI returns are no longer focusing solely on productivity gains or cost reductions, but are increasingly using AI to create new revenue streams, reinvent business models and reposition themselves for emerging markets.

“African business leaders have learned to make strategic decisions under constraints. Capital constraints, infrastructure gaps, skills scarcity, currency volatility, and the need to protect fragile operating performance have made building resilience a business imperative. As AI reshapes competition, companies with higher AI fitness are realising outsized returns, which may widen the gap in market leadership and profitability over time.

“In today’s business environment, African CEOs cannot afford to let constraints slow reinvention, as delay may limit their ability to compete for emerging sources of growth. PwC’s AI performance study shows the companies seeing the biggest returns from AI are not simply chasing improved productivity or cost savings. They are making bold decisions, using AI to drive growth and new value creation.

“Africa’s AI Fitness Index sits at the global median, yet the region trails AI leaders across every major dimension of AI-driven performance. This gap suggests that the challenge is not adoption, but execution at scale. The opportunity for the region is not to do more AI. It is to scale the right AI, deliberately and decisively,” the global professional services firm stated.

The appointment of PwC as administrator is the first formal step in dealing with a collapse that had already played out.

Muniu Thoithi and George Weru of PwC were appointed joint administrators on February 1 under the Insolvency Act 2015. 

From that point, control of the company’s assets and decisions moved away from management. 

“The primary objective of administration proceedings is to allow Administrators to explore ways of rescuing the company as a going concern where feasible or achieving a better outcome for the creditors of the company than would be in the case of a liquidation,” the notice said.

By the time PwC arrived, the damage was already visible. On January 31, more than 700 employees were laid off as Koko’s fuel distribution slowed and, in many areas, stopped. 

Customers in low-income neighbourhoods who depended on the company’s ethanol refills were left without supply. 

At its peak, Koko served between 1.3 and 1.5 million households through about 3,000 automated fuel shops in Kenya and Rwanda, though the Rwanda operation had been paused earlier.

What finally broke the business was regulatory. Koko had spent months seeking a Letter of Authorisation that would allow it to sell carbon credits internationally. 

Those talks were described by people close to the company as “going well” until last week, when a senior official rejected the application and “trashed every progress” made. 

That decision shut the door on carbon revenues that investors had tied to more than $300 million in equity, debt and guarantees.

Without that income, the numbers no longer worked. Koko sold two-burner smart stoves at KES 1,950 ($16), far below cost, and kept fuel prices as low as KES 30 ($0.23). Carbon credits were meant to carry the loss. They never came.

Pressure had been building long before the final decision. In April 2024, Kenya’s Energy and Petroleum Regulatory Authority suspended bio-ethanol imports. 

Koko was forced to rely on a more expensive local supply, which disrupted logistics and tightened margins. By late 2025, fuel shortages had become frequent, even as the company tried to keep its network running.

Big names backed the expansion. Microsoft’s Climate Innovation Fund, Verod-Kepple, Mirova, Rand Merchant Bank and the World Bank’s Multilateral Investment Guarantee Agency, which provided a $179.6 million guarantee, all supported the company at different stages.

PwC now faces the options of assessing whether any part of the Koko Networks business can be rescued, or winding it down in a way that returns more to creditors than liquidation would. 

Creditors have been given 14 days to submit claims.

He currently serves in multiple leadership capacities including as partner at Adaverse, contributing to strategic blockchain and Web3 initiatives; Africa Lead, Technology & Innovation at Blockspace Africa Technologies Ltd, steering technology adoption and developer growth; coordinator & founder of the Blockchain Nigeria User Group (BNUG), Nigeria’s premier community of blockchain users, builders, and innovators, and advisor (West Africa) for Kinesis Money and strategic advisor across other blockchain ventures.

Earlier in his career, Chuta was regional director for Africa at Paxful Inc., where he helped grow peer-to-peer crypto marketplaces and blockchain education across the continent.

He plays an active role in Nigeria’s regulatory and policy ecosystem, serving on key industry committees such as the Fintech Roadmap Committee for the Nigeria Capital Market and contributing to SEC and NITDA working groups on digital assets and blockchain standards.

Chuta is also an author and technologist, having published Seizing Opportunities in Blockchain and Digital Currency Revolution: A Handbook for Enthusiasts and other guides aimed at demystifying blockchain for entrepreneurs and regulators.

As a speaker and commentator, he is regularly featured at major fintech and tech summits across Africa and globally, and appears in media outlets to discuss innovation, digital assets, and the future of finance.

In this interview Techeconomy Editor, Chimezie Chuta said he believes in the school of thought that smart regulation is all Nigeria needs to unlock opportunities in the crypto space. Excerpt:

TE: PwC estimates that Nigeria processed about $92.1 billion in crypto transactions in one year. What does this figure really tell us about Nigeria’s crypto economy?

Chimezie Chuta: The number tells us something fundamental which is crypto adoption in Nigeria is no longer speculative, it is infrastructural. This level of transaction volume shows that millions of Nigerians are already using crypto rails for payments, savings, remittances, and trade. The challenge is not demand; it is formal integration.

Crypto is already functioning as an alternative financial layer. The opportunity for government is to formalise it in a way that captures value without suppressing usage.

TE: How can Nigeria convert this massive crypto activity into measurable economic value for government and citizens?

Chimezie Chuta: The starting point is licensing. By licensing compliant exchanges, custodians, and payment processors, Nigeria unlocks transaction visibility, consumer protection, and fiscal oversight. This also formalises on-ramps and off-ramps, which is where economic value becomes measurable.

Beyond that, crypto rails should be integrated into real economic activity such as trade, remittances, and MSME payments, particularly within the AfCFTA framework.

Stablecoins, for example, can significantly reduce FX friction and settlement costs for cross-border commerce.

It’s also important to capture data, not just taxes. Transaction insights can inform monetary policy, financial inclusion strategies, and capital market development. Formalisation allows Nigeria to benefit from crypto without killing innovation.

TE: Which sectors of the Nigerian economy stand to benefit the most if crypto is fully integrated?

Chimezie Chuta: Payments and remittances will benefit immediately, faster and cheaper domestic and cross-border transfers, especially for diaspora inflows.

Trade and MSMEs will gain improved liquidity, easier invoice settlement, and access to cross-border trade financing. Capital markets could evolve through tokenised assets and fractional investments, widening retail participation.

The creative and digital economy is another big winner, as Web3 enables direct monetisation for creators, developers, and freelancers. Finally, crypto can significantly advance financial inclusion by serving the underbanked through mobile-first wallets and stablecoin rails. The strongest value lies at the intersection of inclusion, efficiency, and scale.

TE: With the Nigeria Tax Act now in effect, how can government tax crypto activity without stifling innovation?

Chimezie Chuta: Balance is everything. Government should tax value creation, not experimentation. That means focusing on realised gains, service fees, and institutional profits, not punitive transaction taxes.

Clarity and predictability are also critical. Clear guidance on taxable events, reporting thresholds, and the treatment of digital assets reduces uncertainty for both users and businesses.

Tax compliance should be aligned with licensed platforms rather than attempting to directly police peer-to-peer activity. A phased implementation approach allows the market to mature before aggressive enforcement. Over-taxation simply drives activity underground; smart taxation expands the base.

TE: Beyond tax revenue, what long-term economic benefits can crypto deliver to Nigeria?

Chimezie Chuta: The real upside of crypto lies in productive capacity, not just fiscal extraction. We’re looking at job creation across engineering, compliance, cybersecurity, legal, and product roles.

Crypto also supports high-value digital skills development, positioning Nigeria as a regional Web3 talent hub.

It can attract foreign direct investment into regulated platforms and infrastructure, and enable Nigeria to export financial services across Africa and beyond.

Importantly, credible local digital asset infrastructure helps retain capital that would otherwise leave the country.

TE: How would you assess Nigeria’s current progress on crypto regulation and licensing?

Chimezie Chuta: Nigeria has made meaningful progress. The SEC’s Digital Asset Rules now classify digital assets as securities and define regulated activities. We have VASP registration frameworks for exchanges, custodians, and intermediaries, as well as regulatory sandbox initiatives that allow controlled innovation.

There is also improving inter-agency coordination between the SEC, CBN, NFIU, and tax authorities. Licensing is critical because it converts crypto from a shadow system into regulated market infrastructure, improving trust and accountability.

TE: Why is licensing so important for both consumers and investors?

Chimezie Chuta: For consumers, licensing means proper custody standards, AML and KYC enforcement, dispute resolution mechanisms, and reduced fraud and platform risk.

For investors and institutions, it delivers legal certainty, counterparty confidence, bankability, and lower regulatory risk. Institutional capital does not enter ambiguous markets. Licensing is the bridge between adoption and investment.

TE: What lessons can Nigeria learn from other countries that have successfully regulated crypto?

Chimezie Chuta: Jurisdictions like the UK and EU under MiCA show the value of clear, activity-based licensing. Singapore demonstrates how risk-based supervision and innovation sandboxes can coexist. The UAE’s tiered licensing aligns regulation with scale and risk, while South Africa integrates crypto into existing financial services law rather than isolating it.

The common lesson is simple: clarity beats prohibition, and proportionality beats rigidity.

The professional services firm’s analysis forecasts that despite a slight easing in inflation, at least two million more Nigerians are likely to slip into poverty this year, pushing the total number of impoverished citizens higher than in 2025.

PwC attributes the rising numbers to legacy policy gaps, global economic shocks, and the immediate social costs of ongoing fiscal reforms aimed at stabilising the economy.

The report suggests that while core macroeconomic indicators, including inflation, may show modest improvement, household incomes are unlikely to keep pace with the cost of living, especially for low-income families.

Economists say the situation reflects deep structural challenges.

Data shows that poverty in Nigeria has been on a steep upward trajectory over the past decade, with numbers rising sharply in recent years as real income growth lags behind population expansion and persistent price pressures.

Experts warn that if trends continue, the country may see even greater economic hardship without accelerated job creation, expanded social safety nets and targeted policy interventions to protect vulnerable households.

The 2025 Bootcamp marked another defining milestone in DSN’s bold mission to train one million AI talents within ten years and position Africa as a global hub for inclusive and sustainable technological innovation.

This year’s edition attracted over 32,000 applications from across Nigeria’s 36 states and the Federal Capital Territory, a record that underscores the growing national appetite for AI capacity development and the trust DSN has earned as the continent’s foremost AI learning and research non-profit.

Through a rigorous multi-stage process that assessed technical aptitude, problem-solving potential, and collaborative mindset, only 150 of the most outstanding learners emerged as finalists and were invited to the fully residential, all-expenses-paid Bootcamp hosted at the University of Lagos.

The Bootcamp’s curriculum was designed to deliver an end-to-end learning experience that merged technical depth with social impact. Participants explored cutting-edge themes such as Generative and Agentic AI, Geospatial Intelligence, Digital Public Infrastructure, Machine Learning, Deep Learning, and Responsible AI.

The training followed a structured model that progressed from foundational sessions to advanced project development, enabling participants to transition quickly from concept to deployable prototypes with real-world relevance.

The approach reflected DSN’s enduring philosophy of “learning, building, and sharing,” ensuring that every participant not only gained world-class knowledge but also understood how to apply it toward solving Africa’s most pressing challenges.

The Bootcamp was powered by a strong coalition of global partners and industry leaders, including Microsoft, Meta, MTN, Google DeepMind, Boaz Integrated Energy, Hyperspace, NVIDIA, NitHub, EqualyzAI, TechCabal, Askya Investment, the Fintech Association of Nigeria, and the University of Lagos. These organizations brought together expertise, resources, and mentorship, making the programme a world-class experience.

In all, 32 renowned experts from across the globe facilitated technical and strategy sessions, drawing from institutions such as the Gates Foundation, Microsoft, Google, Meta, Mastercard Foundation, Access Holdings Plc, Interswitch Group, MTN, PwC, PIC, ARM, the Mastercard Center for Inclusive Growth, WorldPop, and the University of Southampton.

Among the high points of the Bootcamp were the masterclasses delivered by some of the most respected voices in technology and development.

Dr. Uyi Stewart, Chief Data and Technology Officer at Data.org, shared an inspiring keynote on “AI for Inclusive Growth,” emphasizing how data and technology can accelerate social progress.

Olubunmi Okunowo and Toyosi Odukoya led an engaging session on how open-source frameworks and Digital Public Infrastructure can enable national development and inclusive service delivery.

Dr. Chris Nnanatu’s presentation on “Powering Africa’s Growth with Location Intelligence” highlighted the transformative power of geospatial data for economic and environmental planning.

Collectively, these sessions underscored the thematic focus of this year’s Bootcamp, that Africa’s future in AI must be both inclusive and indigenous, built on solutions that reflect local realities and global best practices.

Beyond classroom learning, the participants participated in a high-impact Hackathon designed to convert theory into tangible solutions.

Working in multidisciplinary teams, the learners tackled real-world problems across healthcare, agriculture, financial inclusion, and public service delivery sectors.

One of the most inspiring moments came from EqualyzAI, a DSN-incubated startup, which showcased its pioneering work on localizing Small Language Models (SLMs) for African languages.

The demonstration aligned with DSN’s ongoing work in AI for social good and reflected the broader vision of building equitable digital futures for Africa’s linguistically diverse population.

The Bootcamp culminated in an awards ceremony celebrating excellence, creativity, and community spirit.

The DSN Community at the Federal University of Technology, Akure (FUTA) emerged as the AI School of the Year, a recognition sponsored by Boaz Integrated Energy and Hyperspace, and received a $1,000 grant to establish a mini AI library that will serve as a lasting legacy of continuous learning on campus.

Individual awards also highlighted exceptional performance: the Mr. & Ms. Algorithm Awards, sponsored by Microsoft, celebrated participants who demonstrated commitment and core values of DSN Community; Best Academic Poster, sponsored by Google DeepMind; Best Hackathon Project, sponsored by MTN Foundation; and Best Project Participation, also supported by Microsoft, all rewarded brilliance and consistency with tiered cash prizes.

In addition, every participant received a Microsoft-sponsored certification voucher, a tangible step that enhances employability and global recognition in the rapidly evolving AI landscape.

Throughout the Bootcamp, industry partners played a visible role not only as sponsors but as co-educators, mentors, and advocates for inclusive innovation.

Their contributions underscored a shared belief that Africa’s competitiveness in the global digital economy depends on collective investment in human capital and home-grown innovation.

The partnership between DSN and Microsoft continued to provide the foundational bridge between learning and opportunity, through advanced skilling, access to certification, and exposure to real-world AI applications.

In his closing remarks, Dr. Olubayo Adekanmbi, Data Science Nigeria’s founder and chief executive officer, reflected on the transformative journey of the AI Bootcamp since its inception.

He described the 2025 edition as reaffirming the belief that Africa’s future will not be imported but intelligently built by its people.

He urged participants to act as ambassadors of knowledge, extend the mentorship culture, and replicate the Bootcamp’s impact within their local communities.

“We have built not just coders but catalysts, people who will use AI to solve Africa’s most pressing challenges,” he said. “As you have freely received, freely give.”

The 8th Data Science Nigeria AI Bootcamp is a powerful testament to the potential of strategic collaboration, purposeful learning, and inclusive access.

It represents a generation of young innovators equipped with technical competence and a shared vision of using AI as a tool for national transformation and global relevance.

As the participants return to their campuses, startups, and communities, they carry the collective energy of an ecosystem determined to make AI work for all, ensuring that Africa’s intelligence revolution remains open, inclusive, and transformative.

According to a recent report by PwC titled, ‘Mid-Year Review and Updates: H2 2025 Economic Outlook’.

It highlighted how AI is rapidly transforming industries and is expected to power 40% of use cases by 2027, while the labour markets may face job role shifts that demand urgent reskilling.

The report noted that Africa accounted for under 1% of global AI companies, far behind the US and Europe.

However, it noted that out of the 2,400 organizations working on AI innovations in Africa, Nigeria ranked second, accounting for 19% of the total signalling potential for growth and investment.

Ranking African countries in terms of AI talent readiness, Nigeria ranked 18th, higher than Zambia and Botswana but below South Africa and Kenya.

Highlighting the critical issues affecting Nigeria’s AI development, it emphasized that Nigeria benefits from a large, youthful population and emerging tech hubs. However, lack of AI infrastructure, advanced skills training, and a unified national AI strategy.

To close the gap and emerge among the top tier AI destinations in Africa, PwC urged Nigeria to boost its AI education pipelines, invest in high-speed digital infrastructure, and deepen collaboration between government, academic, and industry partnerships to emerge among the continent’s top performers.

NiRA is a not-for-profit, non-governmental entity responsible for managing Nigeria’s country code Top-Level Domain (ccTLD), “.ng”.

The organization plays a pivotal role in ensuring the stability, security, and reliability of Nigeria’s internet ecosystem.

Ms. Onasanya succeeds Mrs. Eyitayo Iyortim, the immediate past COO, who has recently been elected as the Chairperson/President of the African Top-Level Domains (AfTLD).

As COO, Ms. Onasanya will lead NiRA’s management team, oversee day-to-day operations, and serve as Secretary to the Executive Board of Directors, with a mandate to drive operational excellence and strategic execution across the organization.

Mr. Adesola Akinsanya, President of NiRA, expressed confidence in Ms. Onasanya’s leadership, thus:

“With Ms. Onasanya’s extensive experience in business operations, strategy, management consulting, stakeholder engagement, and her broad exposure across the private and public sectors, we firmly believe she is the ideal leader to propel NiRA’s mission forward.”

“Her strong leadership skills and deep understanding of the DNS ecosystem and internet governance will be instrumental in advancing our position in this critical space. We are confident that her expertise will significantly contribute to NiRA’s continued growth and success.”

Ms. Onasanya brings over 20 years of professional experience to her new role. Prior to joining NiRA, she served as Director at SNEVA Global Associates, a business advisory and corporate development firm. She was also Director and Head of Business Advisory at FITC, and held the role of People & Organisation Senior Manager at PricewaterhouseCoopers (PwC).

She has led large-scale transformation projects across Nigeria and beyond, including consulting assignments for governments, regulatory agencies, and private sector institutions.

A recognized expert in organizational strategy, HR transformation, digital capability development, corporate governance, and leadership coaching, Ms. Onasanya has worked across Africa and Asia, supporting institutions in building future-ready capabilities.

Her appointment marks a strategic milestone for NiRA as it continues to champion internet accessibility, digital innovation, and national digital identity through the .ng domain space.

Karthik Narain, group CEO and CTO, Accenture called Microsoft a ‘trusted partner.

Karthik’s words:

“Congratulations to Microsoft on this incredible milestone. Accenture is proud to have been a trusted partner on this journey—with more than three decades of joint investment and co-development focused on bringing Microsoft’s transformative technology to organizations across the world. Alongside our joint venture Avanade, we help our clients innovate and reinvent their businesses with Microsoft technology. As the world enters the intelligence era, we believe that deep strategic partnerships like ours are a competitive differentiator and together, we can help accelerate value for every enterprise, government and citizen for the next 50 years and beyond.”

Jerry Kao, COO of Acer Inc. said: “Acer has partnered with Microsoft for four decades, witnessing how their constant innovation has been instrumental to the development of computing technology. From PCs leading to the digital era, and now cloud and artificial intelligence driving transformation all around us, we’re excited to continue working together to create impactful solutions that drive change.”

Shantanu Narayen, the chair and CEO of Adobe wrote:

“Congratulations to Microsoft on your 50th anniversary! This milestone is a testament to your tremendous innovation and impact. Adobe is proud to partner with Microsoft to deliver transformative digital experiences and we’re excited to keep pushing the boundaries of what technology and AI can help deliver for billions of people around the world.”

Also, Dr. Lisa Su, chair and CEO AMD sent congratulatory message to Microsoft: “Congratulations to Satya Nadella and the entire Microsoft team for an amazing 50 years of innovation! Microsoft is truly a pioneer in the industry and AMD is honored to be your partner. I’m incredibly proud of our collaboration and joint work together over the years—from driving the industry standard for personal computing with Windows, to powering the most important Azure cloud services used by so many every day with AMD EPYC and Instinct, to reaching billions of gamers with Xbox. I look forward to all we will do together over the coming years! Together, we’re shaping the future of AI and the next generation of computing.”

S.Y. Hsu and Samson Hu, Co-CEO of ASUS:

“We are honored and proud to have built a solid, long-term partnership with Microsoft for over 30 years, a company that remains at the forefront of cutting-edge technology, and that has helped ASUS achieve its AI integration goals. We look forward to many more successful years of future collaboration.”

Jeff Clarke, vice chairman and chief operating officer, Dell Technologies also felicitates with the partner: “For more than four decades, Dell’s partnership with Microsoft has driven breakthrough innovations that transform industries, empower customers and improve lives around the world. Together, we’ve redefined possibilities, from personal computing to the AI-driven technologies shaping our future, and we look forward to what lies ahead.”

Jim Johnson, senior vice president, Client Computing Group, Intel:

“For decades, Intel’s partnership with Microsoft has sparked innovation and delivered value to our customers. Together, we’ve revolutionized industries and established new benchmarks for excellence. We look forward to collaborating for the next 50 years—and beyond.”

Carl Carande, global head of Advisory at KPMG International and Vice Chair of Advisory at KPMG in the US: “Our long-standing strategic alliance with Microsoft continues to drive transformative digital innovation, enabling us to deliver greater value to clients and accelerate business outcomes. We are committed to working together with Microsoft to help organizations harness AI and emerging technologies to navigate complexity, unlock new opportunities, and lead with confidence in the intelligent age. We continue to advance our 360-degree relationship, working with Microsoft to lead the future of innovation for our own operations, for Microsoft and for clients.”

Yuanqing Yang, CEO and chairman, Lenovo:

“Having worked alongside every CEO of Microsoft in my career, I would like to personally congratulate Microsoft for its 50 extraordinary years of driving relentless innovation. From PC to mobile, and now onto the AI era, Lenovo and Microsoft have partnered in bringing personal computing to every household, enhancing enterprise productivity with Microsoft Office, and most recently in powering more personalized, productive, and protected Lenovo AI PCs with Copilot+ experiences, delivering cloud- based services and AI-driven IT solutions, enabling scalable infrastructure for the new AI era, and working towards a vision of personal AI twins and enterprise AI twins. Lenovo is proud to be a major part of this amazing journey with Microsoft and we are committed to this partnership for many more decades to come.”

Jeff Fisher, senior vice president for GeForce at NVIDIA: “Microsoft’s contribution to advancing computing over the past 50 years is worth celebrating. The NVIDIA and Microsoft partnership will continue to deliver the next era of accelerated computing and AI, from GeForce gaming to RTX AI PCs.”

Stephanie Mosticchio, principal, US and Global Microsoft Alliance Leader, PwC:

“As a proud Microsoft alum, I’ve seen firsthand how our collaboration has evolved to drive meaningful change for businesses across industries. From strategy through engineering and implementation, PwC and Microsoft drive innovation and deliver real business outcomes for clients worldwide.”

Matt Hicks, president and CEO Red Hat: “Red Hat and Microsoft have a long history of driving customer success together, from the datacenter to the cloud, out to the edge, and now, into the AI era. We continue to bring together Red Hat’s open-source expertise with Microsoft’s leading cloud capabilities to meet our customers wherever they are in their IT roadmap.”

Jay Kim, executive vice president and head of Customer Experience Office, Samsung:

“Partnering with Microsoft has allowed us to leverage cutting-edge technology, set new standards for excellence, and deliver value to our customers. Our collaboration has driven innovation, delivering the most premium PC experience in the industry with the Galaxy Book series, and seamlessly integrating Galaxy smartphone and PC capabilities to create an experience that truly resonates with our customers.”

Christian Klein, CEO, SAP: “Many congratulations to the entire Microsoft team on this milestone anniversary! For 50 years, you have been at the forefront of technology and our longstanding partnership is a testament to our two companies’ shared commitment to innovation and transformation. Together, we have driven significant advancements in key areas from cloud computing to AI, always enabling our customers to stay ahead in an ever-evolving digital landscape. We’re excited about the many ways Microsoft and SAP will continue to push the boundaries and look forward to the next chapter in your incredible success story.”

Frederic Godemel, executive vice president, Energy Management, Schneider Electric:

“Schneider Electric and Microsoft have been driven by a shared vision of world that is more electric and digital. We’re thrilled to celebrate Microsoft’s 50th anniversary and excited to continue pioneering innovative solutions together, harnessing the transformative power of AI, pushing the boundaries of what’s possible for our customers and shaping a sustainable future for generations to come.”

Erica Volini, executive vice president of Worldwide Industries, Partners, and Go-to-market at ServiceNow: “50 years is an enormous milestone, and it’s our honor to celebrate Microsoft as both a customer and partner on their journey. Their history of innovation has been instrumental in shaping the future of technology and is why ServiceNow values our partnership so deeply. Together we will keep pushing the boundaries of what’s possible and transforming how business gets done. Here’s to another 50 years!”

Tyler Prince, senior vice president, Worldwide Alliances and Channels, Snowflake:

“As someone who has led global partnerships at several of the world’s leading technology companies, I am impressed by how Microsoft has leaned in with their partner ecosystem and taken a leadership position in cloud computing and AI. We, at Snowflake, are excited to continue to strengthen our partnership in the years to come, and we look forward to jointly driving customer success in the age of enterprise AI. Congratulations Microsoft and thank you for your leadership and innovation.”

Krishna Mohan, head of Cloud Business Group, TCS: “In the past five decades, Microsoft has consistently pushed the boundaries of technology, transforming the way we live, work, and connect. Microsoft’s role in democratizing technology innovation at scale has empowered organizations worldwide to streamline operations and enhance productivity.

This relentless pursuit of excellence and commitment to groundbreaking solutions is common to both our organizations, especially as we deliver sustainable innovations that underscore our shared dedication to creating a better future for generations to come. Congratulations to Microsoft on reaching 50 years of innovation.”

Kedar Kondap, senior vice president and general manager, Product Management, Qualcomm Technologies, Inc.:

“Qualcomm is proud of our collaboration with Microsoft, from which we have delivered world-changing technology to market over the years. We share a commitment to delivering innovative solutions, and could not be more excited for what’s to come.”

50 hearty cheers to Microsoft!

This sluggish growth lags behind the global inflation rate, leaving the sector’s long-term profitability being questioned.

Despite an additional $200 billion in potential incremental revenue over the next five years, financial stress on telecom operators doesn’t make this a win.

The industry’s core services—mobile and fixed connectivity—are increasingly commoditised, making price hikes difficult while infrastructure investment stays indispensable.

Fixed broadband services are expected to grow at a CAGR of 3.8%, while mobile subscriptions will rise by 4.3%. However, revenue from fixed voice subscriptions is set to decline by 1.8% annually.

The report highlights sharp differences at a country level, with emerging markets such as Nigeria, India, Egypt, and Kenya experiencing higher growth rates compared to mature economies like Japan and Switzerland.

The outlook for average revenue per user (ARPU) is concerning. Over the next five years, mobile ARPU is forecast to decline at a CAGR of –1.3%, fixed broadband ARPU will remain almost flat at –0.1%, and fixed voice ARPU will drop by –4.7%.

This trend suggests that most new value in the industry will come from subscriber growth rather than higher earnings per customer.

In Nigeria, for example, fixed-line subscriber numbers are projected to rise at a CAGR of 9.8%, but ARPU will decline at –1.4%. Meanwhile, mobile subscribers in the United States are growing at 4.9% annually, yet ARPU is shrinking by –1.5% per year.

The industry’s financial challenges are clearly seen, as nearly all revenue generated is absorbed by capital expenditures, dividends, and debt servicing—leaving little room for innovation.

AI, 5G, and B2B Services as Growth Strategies

With traditional telecom services facing profitability challenges, operators are looking to emerging technologies and business segments for revenue opportunities.

Artificial intelligence (AI) is becoming an essential tool in customer service, operational efficiency, and network management. AT&T, for instance, has implemented its generative AI platform, “Ask AT&T,” which has cut software development time by 10-30% and reduced call times for customer service agents.

Meanwhile, 5G adoption is expanding rapidly. Global 5G subscriptions are expected to surge from 1.79 billion in 2023 to 7.51 billion by 2028, with its share of total mobile subscriptions increasing from 18.8% to 64.1%. However, monetisation remains a challenge.

Fixed wireless access (FWA) broadband is emerging as a promising use case, particularly in countries like the US, Saudi Arabia, South Africa, and China, where it could help bridge the digital divide between urban and rural areas.

FWA subscriptions are forecast to grow at an 18.3% CAGR, yet they will still account for only 6% of the total broadband market by 2028.

The business-to-business (B2B) sector is also becoming a priority for telecom firms, as price erosion in basic connectivity services accelerates. Companies are tailoring industry-specific solutions, such as Internet of Things (IoT) services, cybersecurity, and private 5G networks.

Saudi Telecom Company (STC), for example, is leveraging its subsidiaries to expand beyond connectivity into cloud computing, cybersecurity, and IoT, securing major contracts with firms like Aramco.

IoT and Private 5G Networks Drive Enterprise Innovation

IoT services are witnessing moderate growth, with the automotive industry leading adoption. Electric vehicles, which function as mobile data centres, are driving a surge in automotive IoT revenue, expected to grow at a 15.8% CAGR to $34.1 billion by 2028.

Meanwhile, industries with large-scale infrastructure—such as mining, ports, and energy—are investing in private 5G networks for remote monitoring and automation.

Manufacturers are also adopting cellular IoT for more flexible factory layouts, as wireless networks eliminate the need for constant rewiring. The most significant growth in IoT revenue will come from application enablement platforms, which are projected to expand at a 23.9% CAGR to $83.1 billion by 2028.

Balancing Investment and Profitability

While global telecom revenues are set to rise over the next five years, the industry is still constrained by high costs and slow ARPU growth.

The challenge for telecom operators will be to strike a balance between infrastructure investment and profitability. New technologies like AI, 5G, and IoT bring opportunities for revenue diversification, but companies must find ways to monetise these advancements effectively.

The coming years will determine whether telecom firms can evolve beyond basic connectivity providers into full-scale digital service providers, unlocking new value in an increasingly connected world.

Finance, which remains one of the top three sectors with the highest AI penetration, according to Statista and PwC, is no exception. Corporations and retail traders are expected to accelerate AI deployment to increase productivity while carefully mitigating the risks of overreliance on algorithms.

In this material, Octa, a broker with globally recognised licenses, shares insights on how AI in trading will evolve in 2025.

Emerging AI trends in trading for 2025

Machine learning continues to redefine the trading landscape by enhancing the speed and precision of market analysis. The 2024 IMF Global Financial Stability Report, Chapter 3, highlights that advancements in artificial intelligence are poised to improve market efficiency.

To be more precise, AI-driven tools are expected to enable faster portfolio rebalancing and more efficient processing of large trades in asset classes like equities and bonds.

However, the IMF also notes the potential risks associated with these technologies, such as heightened volatility during market stress.

Neural networks, particularly large language models (LLMs), have shown immense potential for sentiment analysis in trading. Since their introduction in 2017, the share of AI-related patent applications in algorithmic trading has surged from 19% to over 50% annually.

The tools are already deployed to process market sentiment from news and social media in near real-time, offering traders insights into geopolitical developments and economic forecasts.

Algorithmic trading has grown substantially, with AI-driven systems enabling faster execution and reduced operational errors.

High-frequency trading powered by AI has seen significant adoption, particularly in liquid asset classes such as equities and derivatives.

While detailed statistics on future adoption rates remain speculative, the World Trade Organization’s focus on the digital transformation of markets underscores the increasing reliance on automation to enhance trading efficiency and liquidity.

Opportunities for traders in 2025

AI’s capacity to process sizable quantities of historical and real-time facts allows investors to benefit from predictive insights that had been formerly inconceivable.

Advancements in AI-powered predictive analytics are changing how we forecast international markets by making predictions more accurate and providing clear, actionable insights.

These tools are transforming financial markets, helping investors spot trends and respond to changes with greater confidence.

Emotions can often get in the way of smart trading decisions, especially when markets are highly volatile. AI helps solve this problem by relying purely on data and predictive models for decision-making.

According to the IMF’s Global Financial Stability Report, AI-driven tools are already helping retail traders manage risks more effectively and avoid impulsive trades that could lead to losses.

As AI tool costs decrease, features like real-time portfolio optimisation and automated trading strategies are becoming accessible to individual traders.

Previously available only to large financial institutions, these advanced tools are levelling the playing field, enabling retail investors to trade with more confidence and accuracy.

Risks and challenges in AI integration

AI-driven business strategies come with inherent risks. The IMF warns that over-reliance on algorithmic models could increase market volatility during a global crisis.

For example, AI-driven exchanges exhibited herd-like behaviour during the March 2020 market turmoil.

This resulted in significant price volatility and required a robust regulatory mechanism to manage the risks involved.

The integrity of AI systems faces increasing security challenges. Research shows that the effectiveness of AI models depends on data quality and security.

Recent statistics reveal an alarming trend: cyber threats targeting AI are increasing by 47%. The industry requires robust security measures to protect the algorithms against data manipulation and unauthorised access.

While AI offers tremendous value, its complexity poses a challenge for low-tech businesses. The complexity of advanced AI systems makes it crucial to have accessible training resources and intuitive interfaces.

These tools help traders, especially newcomers, understand and use AI effectively, paving the way for broader adoption across trading communities.

Preparing for AI-driven transformation

Thriving in an AI-pushed trading environment requires specific training. Otherwise, traders risk facing sophisticated systems they can’t properly handle or misusing AI-based tools, consequently missing out on their benefits.

To prepare for future AI tools, traders should try the available software now.

The safest option is to test AI deployment when trading on a demo account. This option is available on trading platforms provided by global brokers like Octa.

For example, Octa broker currently uses AI to facilitate graph analysis and boost pattern identification when conducting technical analysis. Following the increased AI adoption trend, the company will likely keep embedding more AI-based tools on the platform.

Final Word

AI is set to further redefine trading in 2025. From enhanced predictive analytics to democratising organisational productivity tools, the technology enables traders to make smarter, faster decisions. However, sustainable usage should remain at the core.

One should be aware of risks such as over-reliance on algorithms and data security. To mitigate these risks, a reasonable strategy would be to combine AI-based analytics with human market monitoring and decision-making.

AI should be perceived as a convenient tool rather than a magic pill for making accurate trading decisions.

Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already utilised by clients from 180 countries who have opened more than 42 million trading accounts.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

In the APAC region, Octa received the ‘Most Secure Broker Indonesia 2022’ and the ‘Most Reliable Broker Asia 2023’ awards from International Business Magazine and Global Forex Awards, respectively.

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