Africa has set an ambitious goal with a $60 billion investment into Artificial Intelligence (AI) development, representing 2.2% of the continent’s $2.78 trillion GDP. This initiative, part of the Africa AI Fund, was highlighted during the Africa Declaration on AI, which was signed by 52 African nations, including Nigeria, at the recent Global AI Summit held in Rwanda. However, the commitment pales in comparison to other global powers like China and the United States, who are investing trillions into AI to maintain technological leadership.
While Africa’s investment is substantial, it is significantly dwarfed by global rivals. China plans to allocate $1.4 trillion over the next 15 years, while the United States is directing up to $500 billion into AI infrastructure. This global AI race gained momentum following the launch of ChatGPT in November 2022, which accelerated technological advancements and led countries and companies to boost their AI investments.
The continent’s AI potential is seen as a key driver for addressing socio-economic challenges, with experts like Juliet Ehimuan, former Google Director for West Africa, noting that AI could empower Africa to solve its problems more efficiently. However, significant obstacles remain, such as infrastructure limitations, including poor electricity, internet connectivity, and data storage, which hinder AI development. Despite these challenges, researchers are optimistic about AI’s potential to boost Africa’s economy, predicting a $2.9 trillion increase by 2030.
To address these challenges, the Africa AI Declaration outlines plans to invest in AI infrastructure, build local AI enterprises, and enhance research capabilities. The creation of the Africa AI Council, co-chaired by the African Union Commission and the International Telecommunications Union, is another significant step toward developing a competitive AI-driven economy. Additionally, experts highlight the continent’s youthful population and the need for investment in education and research to leverage AI effectively and create sustainable AI ecosystems.
Source: business day