AI & African Enterprises: May 2023 Newsletter

Newsletter Originally published May 29, 2023

🛡️ Once More Unto The Breach, Dear Friends

And here we are again, discussing the ever increasing, every intensifying discourse around generative AI. Every day seems to bring a new headline on AI regulation and funding announcements.

In Africa, if fintech is the golden child, AI has long been been the least favoured sibling. Increased interest in AI seems, however, to be trickling down to Africa with Lagos attracting a stop in OpenAI-CEO Sam Altman's 17-city world tour to woo the public and regulators, and position OpenAI as defacto voice on generative AI. One report suggests spending on AI in the Middle East & Africa will surge to $3b this year, and grow at ~30% per year reaching $6.4b by 2026. Presumably the bulk of this spending and growth will be in the Middle East.

While private market interests in AI companies remains steady, public market performance of recently IPO'd AI companies seems to be following broader tech underperformance trends. Counter to this trend is Nvidia, whose GPUs are powering the AI boom; the company's recent stock price gains are pushing its market cap towards $1 trillion.


Takeaway: We expect continued focus on generative AI, especially considering the tail risk implications the technology poses to labour markets, but maintain healthy skepticism of the surrounding hype

—Team ajala

As usual, we look forward to keeping you informed of the products, deals and partnerships shaping the future of AI in Africa on the last Monday of every month.

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