Large African companies are investing significantly less in artificial intelligence compared with their global peers, according to a new study by PricewaterhouseCoopers (PwC). The report, Decoding ROI from AI in Africa, shows that major firms on the continent allocate just 2% of annual revenue to AI, while businesses in leading markets such as the United States, China, Germany, and France invest around 5%.
Although 82% of African companies surveyed are experimenting with AI through pilot projects, few have scaled adoption across their operations. PwC attributes this gap to economic volatility, infrastructure constraints, and regulatory challenges that have forced businesses to prioritize resilience over long-term transformation. Only 32% of African executives believe their current AI spending is sufficient, compared with 55% in leading AI markets.
Despite limited investment, some firms are already seeing tangible returns. Twenty-three percent reported revenue growth linked to AI initiatives, while 25% noted reduced operating costs. Much of this value stems from efficiency gains in support functions such as HR, finance, and legal services. PwC argues, however, that the greatest potential lies in tackling Africa’s broader growth challenges.
The report highlights opportunities for AI to reshape industries at their intersections — from financial inclusion requiring collaboration between banking and telecoms, to agricultural productivity depending on logistics, finance, and climate intelligence. PwC warns that Africa is underutilizing AI for sector convergence, scoring 5.8 out of 10 compared with 7.1 in leading markets.
Interestingly, African workers may be the continent’s hidden advantage. PwC’s Africa Workforce Hopes and Fears survey found that 64% of employees used AI at work in the past year, compared with 54% globally. With 76% saying AI improves work quality and 72% expecting productivity gains, employee readiness could accelerate adoption even as corporate investment lags.
African companies may be behind in AI spending, but the combination of workforce enthusiasm and the continent’s pressing development challenges positions AI as a transformative force for the years ahead.
