African organizations are rapidly embracing artificial intelligence (AI). However, most are still struggling to convert early experimentation into large-scale business transformation and measurable financial returns, according to a new PwC analysis.
The analysis, released on May 15, draws on the report Decoding Return on Investment (ROI) from AI in Africa, which finds that while 82 percent of organizations across the continent are currently running AI pilots, many remain stuck at the experimentation stage and have not scaled AI across their operations.
The advisory firm says this reflects a widening gap between ambition and execution, with African firms investing less in AI than global leaders.
On average, organizations in Africa allocate just 2 percent of revenue to AI, compared with 5 percent among leading global companies. Only 32 percent of African organizations believe their current investment level is sufficient to meet their AI objectives.
Despite the slow scale-up, the firm notes that organizations classified as “AI-fit” generate 7.2 times higher AI-driven performance than their peers, underscoring the impact of moving beyond isolated pilots to enterprise-wide adoption.
The firm argues that many African businesses are still using AI mainly to cut costs and improve productivity, while global leaders are increasingly deploying it to drive revenue growth, redesign business models, and expand into new markets.
According to Dion Shango, PwC Africa CEO, Africa’s challenge is both adopting AI at scale and implementing it fast enough to remain competitive.
“While more than 82 percent of organizations are running AI pilots, this is not yet translating into enterprise-wide impact. The organizations that will win are not those running the most pilots, but those that scale the right AI to transform how they create value,” he added.
PwC warns that treating AI as isolated experiments limits its impact, turning what should be a transformational tool into incremental efficiency gains rather than a driver of long-term growth.
The report also identifies industry convergence, where AI is used across sectors to solve shared challenges such as financial inclusion, healthcare, and energy access, as one of Africa’s most underutilized opportunities.
However, PwC cautions that scaling AI across organizations will depend heavily on strong foundations, including trusted data systems, modern digital infrastructure, clear governance frameworks, and access to AI talent. Weaknesses in these areas continue to slow progress.
The study also indicates that about 64 percent of employees across African organizations are already using AI in their roles, suggesting strong readiness at the staff level, even as leadership and systems lag.
“The workforce is ahead of the organization in many cases. Employees are ready to use AI, but leaders are still building trust in AI-driven decisions. Bridging that gap is critical to scaling adoption.”
“The strategic choice is clear: use AI to defend today’s margins, or to shape tomorrow’s markets,” the report notes.
