Organisations across Africa are increasingly embracing artificial intelligence, but many are still struggling to convert experimentation into large-scale business transformation, according to a new report by PwC.
The report revealed that while 82 percent of organisations across the continent are already running AI pilot projects, only a few have succeeded in scaling those initiatives across their enterprises. This widening gap between experimentation and execution, PwC warned, could leave African businesses trailing global competitors in the race for AI-driven growth.
According to the findings, African organisations are investing an average of just two percent of their revenue into AI, significantly lower than the five percent investment levels recorded among global AI leaders. Only 32 percent of respondents believe their current AI investment is sufficient to achieve meaningful impact.
PwC said the trend reflects a broader challenge facing businesses on the continent, where enthusiasm for AI adoption is strong but long-term execution remains limited.
Dion Shango, chief executive officer of PwC Africa, said Africa’s challenge goes beyond simply adopting AI and now centres on implementing it quickly and effectively enough to remain globally competitive.
He noted that although many organisations are testing AI solutions, these efforts are yet to translate into enterprise-wide transformation capable of reshaping how businesses create value.
The report noted that many firms continue to approach AI as isolated experiments rather than as strategic tools for reinvention. While pilot programmes help organisations build internal capabilities, PwC argued that limited scaling prevents AI from delivering sustained value creation.
The research also showed that Africa’s AI deployment remains heavily concentrated on improving operational efficiency and reducing costs. In contrast, global frontrunners are increasingly deploying AI to unlock new revenue streams, redesign value chains, and reposition their businesses for future growth.
Olufemi Osinubi, consulting and risk services leader, PwC West Market, said limiting AI adoption to efficiency gains represents a narrow strategy, stressing that the greater opportunity lies in using the technology to expand into underserved markets and create entirely new business models.
PwC further identified industry convergence as one of Africa’s most underutilised AI opportunities. Compared with global leaders, African organisations are less likely to collaborate across sectors to develop new value chains and ecosystem-driven innovations.
Christopher Ogirri, chief AI Officer, PwC Nigeria, noted “Africa’s structural complexity—fragmented markets, infrastructure gaps, and a growing youth population—positions it well for AI-enabled convergence, if organisations design for ecosystems rather than sectors.”
The report observed that many of Africa’s critical development challenges, including financial inclusion, healthcare access, and energy delivery, are inherently cross-sector issues that AI can help address. However, adoption of ecosystem-based AI approaches remains relatively low across the continent.
PwC said scaling AI successfully would require organisations to strengthen foundational capabilities such as trusted data systems, modern cloud infrastructure, governance frameworks, and access to skilled AI talent.
Mark Allderman, Africa Cloud and Digital Leader, PwC South Africa, said weak investment levels, slow data modernisation, and gaps in cloud adoption continue to constrain the ability of many organisations to move beyond experimentation and generate consistent returns from AI investments.
Despite the challenges, the report highlighted workforce readiness as one of Africa’s strongest advantages in the AI transition. According to the findings, 64 percent of workers are already using AI tools in their daily roles, signalling strong openness to adoption and digital transformation.
PwC said organisations must now match ambition with decisive action by prioritising growth-oriented AI use cases, focusing investments on high-value opportunities, and building the structures required for enterprise-wide adoption.
The firm also stressed that businesses would need to invest more heavily in workforce skills, trust frameworks, and decision-making systems to ensure that employee adoption translates into measurable business outcomes.
PwC warned that Africa stands at a critical point in its AI journey. While the continent has demonstrated strong intent, early adoption momentum, and workforce readiness, delays in scaling implementation could widen the gap between African organisations and global AI leaders.
The report concluded that companies now face a strategic choice: using AI primarily to protect existing margins or deploying it to shape entirely new markets and future growth opportunities.
