Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      African AI: lots of pilots, few payoffs

      African AI: lots of pilots, few payoffs

      27 May 2026
      Memory makers SK Hynix and Micron join the $1-trillion club

      Memory makers SK Hynix and Micron join the $1-trillion club

      27 May 2026
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      AI, cybersecurity power standout year for Datatec

      26 May 2026
      New details emerge about Pepkor's bank launch plans

      New details emerge about Pepkor’s bank launch plans

      26 May 2026
      Sam Altman plays down AI 'jobs apocalypse' fears. Kylie Cooper/Reuters

      Sam Altman plays down AI ‘jobs apocalypse’ fears

      26 May 2026
    • World
      AI boom hands Samsung chip workers life-changing bonuses

      AI boom hands Samsung chip workers life-changing bonuses

      27 May 2026
      Pope urges world to hit brakes on AI - Pope Leo

      Pope urges world to hit brakes on AI

      25 May 2026
      SpaceX's record-setting IPO is here

      SpaceX’s record-setting IPO is here

      21 May 2026
      The Mythos hacking threat is looking overblown

      The Mythos hacking threat is looking overblown

      20 May 2026
      Vatican confronts the age of artificial intelligence. Edgar Beltrán/The Pillar 

      Vatican confronts the age of artificial intelligence

      19 May 2026
    • In-depth
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
      The biggest untapped EV market on Earth is hiding in plain sight

      The biggest untapped EV market on Earth is hiding in plain sight

      1 April 2026
      AI, cybersecurity power standout year for Datatec - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
    • TCS
      TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

      TCS+ | The Up&Up Group on the hidden cost of AI

      13 May 2026
      Michael Rossouw

      TCS+ | The retirement decision most South Africans get wrong

      6 May 2026
      TCS | The Cape Town start-up listening for TB with AI - Braden van Breda

      TCS | The Cape Town start-up listening for TB with AI

      4 May 2026

      TCS+ | ‘The ISP for ISPs’: Vox’s shift to wholesale aggregator

      20 April 2026
      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      TCS | Werner Lindemann on how AI is rewriting the infosec rulebook

      15 April 2026
    • Opinion
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Treasury’s crypto crackdown is a betrayal of Mandela’s promise

      22 May 2026
      South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

      South Africa is sleepwalking into another AI policy failure

      20 May 2026
      AI won't fix your culture - it will expose it - Jackie Kennedy

      AI won’t fix your culture – it will expose it

      19 May 2026
      Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

      Free calls, dead voice and Shameel Joosub’s Spanish ghost

      22 April 2026
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » AI and machine learning » African AI: lots of pilots, few payoffs

    African AI: lots of pilots, few payoffs

    PwC says African firms must spend more on AI, but extra investment does not guarantee returns.
    By Nkosinathi Ndlovu27 May 2026
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    African AI: lots of pilots, few payoffs

    African enterprises score higher on PwC’s new AI Fitness Index than their European and North American counterparts – yet still trail the global AI leaders on every meaningful measure of return, raising questions about whether the continent’s largest companies are moving fast enough.

    PwC’s newly published AI performance study surveyed 1 217 large companies globally, 85 of them in Africa. “This gap suggests that the challenge is not adoption, but execution at scale,” the firm said.

    On the headline score, Africa lands at 5.7 out of 10, just behind Asia and the Middle East (both 5.8) and ahead of Europe (5.5), North America (5.1) and Latin America (4.8). The ranking is unusual for a region routinely described as a digital laggard – though the African sample is not broken down by country, and the figures will inevitably reflect the continent’s largest and most digitised economies more than the rest.

    On the headline score, Africa lands at 5.7 out of 10, just behind Asia and the Middle East

    PwC also notes that African firms are running AI pilots at roughly the same rate as the global frontrunners: 82% versus 88% for AI leaders. The gap, in other words, is not in starting projects. It is in what happens after the pilot.

    The most AI-fit companies generate 7.2 times greater AI-driven performance than the rest on an industry-adjusted basis, and the top 20% capture 74% of all AI-driven financial returns. Africa is on the wrong side of that distribution.

    The investment numbers explain part of the gap. Median AI spend in Africa is 2% of revenue, against 5% among AI leaders. Only 32% of African firms believe their current AI investment is sufficient, against 55% among those in market leaders. PwC’s earlier Africa CEO Survey put the figure even lower, at 26%.

    Widest gap

    The widest single gap in the study is on industry convergence – the use of AI to compete across, rather than within, traditional sector boundaries. Africa scores 5.8 on this measure against 7.1 for AI leaders. PwC argues this matters disproportionately on the continent, where many of the largest growth opportunities sit at the intersection of sectors: banking and telecoms in financial inclusion, energy and mining in power access, and logistics and finance in agriculture.

    Workforce data complicates the picture, though with an important caveat: surveys of this kind tend to skew towards office-based, connected workers and are not representative of the broader African workforce.

    Read: South Africa leads rest of Africa in AI adoption – Microsoft

    With that in mind, PwC’s Africa Workforce Hopes and Fears Survey found that 64% of African workers have used AI at work in the past 12 months, against a global average of 54%. Some 76% said generative AI improves the quality of their work. Yet only 36% of African organisations say their employees trust AI-generated insights enough to act on them, against 60% among leaders.

    The report attributes part of the execution gap to operating context. “African business leaders have learnt to make strategic decisions under constraints,” PwC said. Years of macroeconomic and regulatory turbulence, the firm argues, have produced a corporate culture that prizes stability over reinvention – a posture that may now be holding back AI-driven growth.

    AI

    PwC’s prescription – spend more, scale faster – comes with risks of its own. Jason Harrison, chief operating officer of creative company Up&Up Group, said in a recent interview that there is a wide gap between the promises of AI’s transformative capabilities and the reality on the ground. Many organisations, he said, ramp up capital expenditure only to see no return on investment.

    His preferred approach is the opposite of PwC’s: smaller experiments to work out which projects are worth scaling, without committing the full budget upfront.

    Read: Investec’s contrarian AI bet: people over machines

    Harrison also questioned the premise of the global benchmark itself. “The tricky thing is that [the AI hype cycle] is being led by America and companies in America are using that to push up their multiples for their stakeholders and their board. Companies don’t trade at those multiples normally, so people are buying the hype. Silicon Valley is also pushing the hype,” he said. “When you talk about technology strategy and a company’s technology stack, the conversation has swung too much towards AI.” – © 2026 NewsCentral Media

    • Subscribe to TechCentral’s daily newsletter
    • Get breaking news alerts on WhatsApp
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    PwC Up&Up Group
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleAI boom hands Samsung chip workers life-changing bonuses

    Related Posts

    TCS+ | The Up&Up Group on the hidden cost of AI - Jason Harrison

    TCS+ | The Up&Up Group on the hidden cost of AI

    13 May 2026
    How AI agents are reshaping banking in South Africa - Lindelani Ramukumba, Absa

    How agentic AI is reshaping banking in South Africa

    5 April 2026
    SA banks race to scale AI and cloud as challenger threat intensifies

    SA banks race to scale AI and cloud as challenger threat intensifies

    17 March 2026
    Company News
    Zoom Fibre launches Get Flex ISP

    Zoom Fibre launches Get Flex ISP

    26 May 2026
    Africa is where crypto is happening now - Binance co-CEO

    Africa is where crypto is happening now – Binance co-CEO

    26 May 2026
    Retro Rabbit / SmarTek21 refines the art and science of product delivery - Rouan van der Walt

    Retro Rabbit / SmarTek21 refines the art and science of product delivery

    25 May 2026
    Opinion
    Treasury's crypto crackdown is a betrayal of Mandela's promise - Duncan McLeod

    Treasury’s crypto crackdown is a betrayal of Mandela’s promise

    22 May 2026
    South Africa is sleepwalking into another AI policy failure - Celeste Labuschagne

    South Africa is sleepwalking into another AI policy failure

    20 May 2026
    AI won't fix your culture - it will expose it - Jackie Kennedy

    AI won’t fix your culture – it will expose it

    19 May 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    African AI: lots of pilots, few payoffs

    African AI: lots of pilots, few payoffs

    27 May 2026
    AI boom hands Samsung chip workers life-changing bonuses

    AI boom hands Samsung chip workers life-changing bonuses

    27 May 2026
    Memory makers SK Hynix and Micron join the $1-trillion club

    Memory makers SK Hynix and Micron join the $1-trillion club

    27 May 2026
    AI, cybersecurity power standout year for Datatec - Jens Montanana

    AI, cybersecurity power standout year for Datatec

    26 May 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}