Africa's Prosperity: Why and How Can AI Help Overcome the Effects of the Financial Crisis and Boost Development?

In some African countries, artificial intelligence (AI) and economic transformation are gradually developing. The modernization of national socio-economic and financial systems is African countries’ response to the recent financial/pandemic crisis. In this context, we analyze actors, structures, processes, and their development across the continent and in the three sample countries—Egypt, Nigeria and South Africa. African economies are not yet using artificial intelligence to the same extent as in other regions. We examine the scale of transformation, institutional change and development of national industries in which AI/new technologies are used, and the potential of business actors. The impact of artificial intelligence on African countries and examples of success are presented. The chapter provides insight into the links between technologies, actors, markets and institutions (including the regulatory/legal dimension) through a coherent methodological framework. The chapter also addresses new challenges in AI-related technologies in Africa. It shows that the dynamic development of African countries can be achieved through a set of policies aimed at promoting the digital economy, higher institutional density, better governance and achieving a successful digital transformation in the region. Policymakers need to ensure that all public/private sector actors—including AI/emerging technologies—can contribute to the impacts of technological developments across the economy. Bringing together different stakeholders from different socio-economic backgrounds to find and find ways to collaborate in business and (self-) regulation should ideally lead to the emergence of new AI-related ecosystems.