Micah Essien
According to a recent report by the Boston Consulting Group (BCG), investments in generative artificial intelligence (AI) are projected to increase by 60 percent over the next three years. The study, titled “BCG AI– From Potential to Profit: Closing the AI Impact Gap,” highlights that in 2025, AI will remain a primary focus for global business leaders, with one-third of companies planning to allocate over US $25 million to AI initiatives.
BCG’s AI Radar global survey, now in its second year, gathered insights from 1,803 C-level executives across 19 markets and 12 industries, including nations such as South Africa, Nigeria, and Morocco. The findings revealed that 56% of companies are channelling their AI investments into smaller-scale, productivity-oriented projects. While leaders are setting clear objectives and monitoring both top and bottom-line impacts, 60 percent of surveyed companies have not established or tracked financial key performance indicators (KPIs) related to AI value creation.
In Africat, 35 percent of companies surveyed lack defined financial KPIs for AI value creation. Additionally, 62 percent face challenges in effective AI organizational change management, and 68 percent report difficulties in hiring and upskilling AI talent. BCG’s CEO, Christoph Schweizer, noted, “CEOs are prioritizing AI to drive productivity. While 75% of executives rank AI as a top-three strategic priority, only a quarter report meaningful value from their initiatives. The gap lies in execution—leaders focus on targeted AI initiatives, scale them rapidly, and invest in upskilling their workforce while tracking measurable operational and financial returns.”
The report also indicates a growing interest in autonomous AI agents—systems capable of achieving goals with minimal human intervention. Globally, 67 percent of executives are exploring the role of these agents in AI transformation, with 65 percent of African companies considering them integral to their AI strategies. Additionally, 66 percent of African executives are optimistic about the synergy between AI and human talent, foreseeing complementary roles. Only 6 percent anticipate job losses due to AI; instead, 68 percent expect to maintain workforce size by enhancing productivity and upskilling employees, while 19 percent foresee AI taking the lead with human oversight.
Despite the positive outlook, significant concerns arise. The report identifies data privacy and security as the top issues, and this was cited by 66 percent of executives, followed by lack of control over AI decisions (48 percent) as well as regulatory challenges (44 percent). In Africa, 64 percent of executives emphasize data privacy risks, and 46 percent highlight regulatory hurdles as barriers to AI adoption. Additionally, 83 percent of African companies acknowledge the need for improved AI security measures, and 60 percent consider regulations as a factor influencing their AI adoption pace—this is the highest rate globally.
The environmental impact of AI is another pressing issue. Globally, 73 percent of companies fail to prioritize energy-efficient AI solutions in vendor selection. This figure is mirrored in Africa, standing at 73 percent, slightly better than South America (86 percent) and North America (83 percent). Addressing this gap will be crucial as AI adoption accelerates across sectors.
