Companies in Africa may struggle to capitalize on the artificial intelligence revolution due to lack of size, according to PwC.

Africa is in danger of lagging behind global leaders in Artificial Intelligence unless companies move beyond limited AI trials and utilise the technology to drive innovation and growth across various sectors, according to Priceawaterhouse Coopers, PwC.

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The company's latest findings on AI performance, released in Lagos, indicate that 82 per cent of organisations on the continent are currently running AI pilot programmes, but only a few have achieved widespread adoption that can deliver tangible results.

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Dion Shango, Chief Executive Officer of PwC, emphasised that organisations must focus on expanding the use of AI that is most effective, rather than simply experimenting with the technology.

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Shango noted that Africa's challenge is not only adopting AI on a large scale but also implementing it quickly enough to remain competitive, and that the organisations that will succeed are those that effectively scale AI to transform their value creation processes.

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He further stated that the organisations that will win are not those with the most pilot programmes, but those that successfully scale the right AI to transform how they create value.

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The report revealed that African companies invest an average of only two per cent of their revenue in AI, compared to five per cent among global leaders, and that only 32 per cent of executives believe the current investment levels are sufficient.

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Olufemi Osinubi, Consulting and Risk Services Leader, PwC West Market, observed that many businesses are focusing their AI efforts on cost-cutting and productivity improvements, rather than using the technology to unlock new revenue streams and business models.

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Osinubi stated that focusing AI solely on efficiency is a limited strategy, and that the real opportunity lies in using AI to unlock growth, expand into underserved markets, and create entirely new business models.

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Christopher Ogirri, Chief AI Officer, PwC Nigeria, noted that Africa's fragmented markets and infrastructure gaps could become advantages if organisations embrace AI-driven ecosystem partnerships.