African firms warned against remaining in AI ‘pilot mode’ as global competition intensifies

The report, titled Decoding ROI from AI in Africa, reveals that 82 percent of organisations across the continent are already running AI pilot projects.

However, few have succeeded in scaling the technology across their operations to generate measurable returns.

The findings suggest that although African business leaders remain optimistic about AI, implementation continues to lag behind global competitors.

“Africa’s challenge is both adopting AI at scale and implementing it fast enough to remain competitive,” said PwC Africa chief executive officer, Mr Dion Shango, during the release of the report.

“While more than 82 percent of organisations are running AI pilots, this is not yet translating into enterprise-wide impact. The organisations that will succeed are not those running the most pilots, but those scaling the right AI solutions to transform how they create value,” he added.

The study surveyed 1,217 senior executives from 25 sectors globally, including 85 organisations in Africa, and found that the continent’s most AI-ready companies generate 7.2 times greater AI-driven performance than others.

According to the report, African organisations continue to invest cautiously in AI, with average spending standing at only two percent of annual revenue, compared with five percent among global AI leaders.

Only 32 percent of African firms believe their AI investment is sufficient to achieve long-term goals.

For countries such as Tanzania, where digital banking, mobile money and technology-driven services continue to expand, the report raises questions about whether businesses are moving fast enough to remain competitive in a rapidly evolving global economy.

PwC noted that many African companies are still using AI mainly to improve productivity and reduce costs instead of creating new products, services and markets.

“The real opportunity lies in using AI to unlock growth, expand into underserved markets and create entirely new business models,” said PwC West Market consulting and risk services leader, Mr Olufemi Osinubi.

The report argues that Africa’s biggest opportunity may lie in applying AI to solve cross-sector challenges in industries such as agriculture, healthcare, finance, logistics and energy.

It highlights how financial inclusion increasingly depends on collaboration between banks, telecommunications firms and retailers, while healthcare delivery is becoming more connected to data systems, insurance and digital payment platforms.

However, PwC says most African organisations are still operating within traditional industry boundaries instead of building wider AI ecosystems.

“Africa’s structural complexity positions it well for AI-enabled convergence if organisations design for ecosystems rather than sectors,” said PwC Nigeria chief AI officer, Mr Christopher Ogirri.

The report also identifies weak investment in digital infrastructure and governance frameworks as major obstacles to scaling AI across the continent.

Only 41 percent of African organisations surveyed reported having clearly defined AI roadmaps, while just 37 percent said they had formal responsible AI and risk management frameworks in place.

Many organisations also continue to face challenges linked to outdated data systems, limited cloud adoption and shortages of AI specialists.

Despite these gaps, the report says Africa possesses one key advantage: a workforce increasingly ready to adopt AI technologies.

According to PwC’s workforce survey, 64 percent of African employees have already used AI tools in their jobs over the past year, compared with a global average of 54 percent.

In addition, 76 percent believe generative AI improves the quality of their work, while 72 percent expect it to boost productivity over the next three years.

PwC Kenya technology consulting partner, Mr Laolu Akindele, said many workers are already more open to AI than business leaders themselves.

“The workforce is ahead of the organisation in many cases. Employees are ready to use AI, but leaders are still building trust in AI-driven decisions. Bridging that gap is critical to scaling adoption,” he said.

The report warns that African firms risk falling further behind if they continue treating AI as isolated experiments instead of tools for long-term transformation and growth.

PwC estimates that more than $7 trillion in global value could shift across industries as companies reinvent their business models using AI and other emerging technologies.

For Tanzania and the wider East African region, the report says the shift could create opportunities for businesses investing in AI-powered financial services, agricultural technology, logistics, healthcare and education systems.

“Africa’s AI story is not one of catching up. It is one of leapfrogging if we act with conviction,” said Mr Shango.

“The companies bold enough to invest at scale and embrace the technology will define the next phase of growth across the continent.”