What AU’s new continental AI strategy means for African businesses ?

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AI is becoming an instrumental tool for growth and innovation worldwide, and Africa is no exception. The African Union (AU) has recognized this potential and developed its Continental AI Strategy to align policies better and foster innovation across its member states.

Understanding the AU’s New Continental AI Strategy

The AU, the continental union comprising 55 member states, approved and adopted the Continental AI Strategy in July 2024 [1], after numerous stakeholder consultations. The approval and adoption of this strategy signals the continent’s proactive approach to understanding and using AI in public and private domains.

The document provides a cohesive vision for the development and application of AI in Africa. It outlines comprehensive guidelines to ensure that AI adoption becomes a net good for the continent, benefiting society and addressing its unique challenges.

It emphasizes five focus areas:

Harnessing the benefits of AI
Building and enhancing AI capabilities
Minimizing risk
Stimulating investments
Promoting cooperation

This framework provides a clear direction for using AI on the continent. It also allows African businesses to align their operations with a broad, continental approach that could influence the economy and potential investments.

Improving AI Governance

AI is still a relatively new technology, and rules can be murky in these early stages. Many countries are still finding ways to effectively create and enforce regulations in this field, especially with new features and capabilities being introduced. Over 3% of businesses currently use AI [2] to produce their products and services, and as technology advances, these numbers will only grow.

AI governance is one of the key pillars of the overall continental strategy. After all, successfully implementing the strategy’s focus areas will rely on effective governance and regulation, especially in minimizing AI’s risks and harnessing its benefits. It ensures that AI use and development remain inclusive and align with African priorities.

The AU has created a multifaceted approach to governance to encourage responsible AI use, consisting of five core activities:

Applying and amending existing laws or frameworks
Finding regulatory gaps
Creating enabling policy frameworks
Developing and rolling out institutional mechanisms, assessments and evaluation tools
Research and evaluation

5 Ways the AU’s AI Strategy Will Impact African Businesses

The AU’s new Continental AI Strategy will impact several fields and industries in Africa, including business and the private sector. Here’s what business owners can expect:

1. Policy Harmonization and Regulatory Certainty

Inconsistent or fragmented rules can make scaling across borders challenging for African businesses. This new strategy helps align policies and standards for AI adoption and data use across all member states.

As a result, businesses can enjoy regulatory certainty and lower barriers to expansion. For example, an AI-powered fintech company in Kenya can grow into other African markets without overhauling its operations for each country. It means spending less time and money navigating different legal systems.

2. Boosting Innovation and Access to Funding

The AU strategy emphasizes investment in AI research, innovation and entrepreneurship. The report is optimistic that AI can stimulate economic growth and generate employment opportunities for multiple sectors.

It aims to generate solutions that will allow public and private institutions to harness AI’s highest potential. This goal involves supporting AI research hubs and startups and encouraging partnerships. Companies in agriculture, healthcare, education, public service delivery, climate change and security could find themselves at the center of this growth.

3. Skills Development and Workforce Readiness

As a newer, specialized industry, talent remains a bottleneck for AI development. One of the strategy’s action areas focuses on education and workforce development, promoting AI skills and talent in schools, colleges, workplaces and the general public.

These efforts include upskilling and reskilling programs for key industries and positions. AI itself is helpful in these efforts — 55% of teaching professionals found [3] that AI can improve educational experiences.

The AU can equip Africa’s youth and working population with relevant digital and AI skills, preparing them for AI-centered industries. Businesses then get a solid local talent pipeline, reducing reliance and expense on foreign expertise.

4. Enhanced Digital Infrastructure

AI adoption can only succeed with a strong digital infrastructure, which the strategy fortunately covers. It highlights the importance of sustained investment in infrastructure like reliable electricity, broadband connectivity, data centers and cloud services across the continent.

Investing in these areas will make it easier for businesses to develop AI and digital solutions in rural and urban areas. Sectors like healthcare, agriculture and logistics will especially benefit from these developments.

5. Ethical AI and Responsible Business

The strategy stresses the importance of ethical AI [4], ensuring its use and development follow principles of transparency, fairness and accountability. Businesses and other institutions should ensure their AI technologies respect:

Human rights and dignity
African culture and values, diversity and inclusivity
Protection of children
Responsible and unbiased AI use that respects intellectual property rights

Following these guidelines builds customer and stakeholder trust, boosting one’s reputation and position in the marketplace.

Building a Responsible AI Future

The AU’s Continental AI Strategy is a significant milestone for Africa’s digital future. It establishes a unified approach for AI governance, development and ethics, providing businesses and multiple sectors with the direction and resources they need to thrive in this new era.