Intelligent CIO Africa Issue 97 | Page 63

INTELLIGENT BRANDS // Software for Business

BCG finds 60 % African companies building geopolitical muscle as AI adoption picks up

In the latest edition of the AI Radar report , titled From Potential to Profit : Closing the AI Impact Gap , BCG surveyed 1,803 C-level executives across 19 markets and 12 industries , including South Africa , Nigeria and Morocco .

Meanwhile , 17 % of executives globally expect AI to reshape the workforce by introducing new roles to replace redundant ones . 8 % foresee AI driving an increase in headcount , while only 7 % predict a reduction in workforce size due to AI automation .
“ In my discussions with CEOs , it is clear they are prioritising AI to drive productivity ,” said Christoph Schweizer , CEO of BCG . “ Our latest survey uncovers a crucial challenge : while 75 % of executives rank AI as a top three strategic priority , only a quarter report meaningful value from their AI initiatives .”
The report reveals that 60 % of African companies surveyed are starting to build their geopolitical muscle , citing regulations as a factor in their AI adoption pace . This is the highest across the globe , followed by North America , 58 %, Europe , 56 %, the Middle East , 54 %, APAC , 52 % and South America , 45 %.
68 % of executives globally anticipate maintaining their current workforce size , focusing on enhanced productivity and upskilling existing talent to meet AI demands . That contrasts with the fact that fewer than one-third of companies have upskilled even a quarter of their workforce – an improvement from last year , but still far from the level needed to help employees feel secure in adapting to a technology often perceived as a threat to jobs .
“ Successful leaders adopt the 10-20- 70 framework to unlock AI ’ s business potential , allocating 70 % of their efforts to transforming people , processes , and culture ; 20 % to data and technology ; and just 10 % to algorithms ,” said Sylvain Duranton , Global Provider of BCG X .
“ However , two-thirds of companies face significant challenges in reimagining workflows , driving cultural change , recruiting talent , and upskilling their workforce . Ensuring the success of AI initiatives requires disciplined execution , a relentless focus on value creation , and a workforce ready to adapt and thrive in a rapidly evolving environment .”
Executives identified data privacy and security , 66 %, lack of control or understanding of AI
Christoph Schweizer , CEO BCG
Sylvain Duranton , Global Provider , BCG X
decisions , 48 %, and regulatory challenges and compliance , 44 % as the top three AI risks to navigate . Cybersecurity is a critical concern , with 76 % of executives acknowledging that their AI cybersecurity measurements require further improvements .
At least 64 % of African executives surveyed have raised data privacy and security risks , 37 % have highlighted the lack of control or understanding of AI decisions , and 46 % are concerned with regulatory and compliance challenges . p
In Africa , the report shows that only 6 % of executives expect AI to lead to job losses . 37 % of these executives say that they see significant value from AI . This is supported by the finding that 86 % of African companies are planning to increase technology investments in 2025 , pushing for a more disruptive usage of AI , prioritising investments in higher-impact areas .
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