Headless Chicken or Emergent Nation: Ethiopia’s AI Prospects

A recent report by Boston Consulting Group classified Ethiopia as an "AI emergent" nation in its AI Maturity Index 2024, highlighting the country's challenges and prospects. One of six classifications given out to countries reflects brewing potential that can be harnessed through impactful policy designs.

“AI emergents are at the nascent stages of their AI journey. They should put in place the foundational elements to drive adoption, including international investment and sources of talent and training,” reads the report.

The research, which looked into 73 global economies, revealed that while Ethiopia's economy heavily relies on agriculture, integrating artificial intelligence (AI) could substantially enhance efficiency within this sector.

According to the report, high-tech, retail, and financial services sectors are particularly vulnerable to AI disruption. However, Ethiopia's agricultural sector which is traditionally slower to adapt to technology can benefit by beginning to harness AI for improved productivity. The introduction of precision agriculture techniques allows farmers to optimize yields by analyzing data on weather patterns and soil conditions. A crucial shift for a country where agriculture accounts for nearly a third of its GDP and employs around 80% of the population.

After analyzing AI exposure and readiness to handle AI disruption, the Report also revealed that 70% of economies are underprepared for AI disruption. While five nations lead as pioneers in AI investment and infrastructure, many emerging economies, including Ethiopia, are actively working to establish their presence in the global AI arena through strategic policies and investments.

In July 2024, Ethiopia’s Council of Ministers approved the country's first national AI policy. This policy aims to guide the development and implementation of AI technologies across various sectors, including agriculture, healthcare, and financial services.

It outlines a vision for integrating AI into different facets of society, enhancing healthcare access through telemedicine, improving educational outcomes with personalized learning tools, and boosting manufacturing efficiency through automation.

Earlier, in 2020, Prime Minister Abiy Ahmed inaugurated the Artificial Intelligence Institute, a government agency whose mission is to foster data-driven AI systems to address challenges, enhance efficiency, and boost productivity.

However, the successful implementation of AI initiatives in Ethiopia hinges on overcoming major infrastructural challenges, including limited broadband access, lack of private sector investment, and affordability issues.

A pronounced digital divide, also adds another layer of complexity. Urban areas had a higher access rate of 42%, while only 9.08% of rural residents were online, with 14% of women and 20% of men having access, according to 2023 research by the Internet Society. As a result, many Ethiopians particularly farmers lack reliable internet connectivity and access to modern technology.

On the other hand, The African Union's Continental Artificial Intelligence Strategy aims to unlock $1.2 trillion in economic potential by 2030.

The Boston Consulting Group's research identifies six archetypes AI Pioneers, AI Contenders, AI Practitioners, AI Emergent, AI Followers, and AI Underprepared, providing a comprehensive overview of global AI adoption & readiness. This matrix highlights the varying levels of readiness and engagement with AI across different countries, emphasizing the need for tailored strategies to enhance adoption and capitalize on the transformative potential of artificial intelligence.

Another study by WriterBuddy.ai also found an unprecedented surge in AI funding over the last five years, a trend reshaping the industry globally. The study identified the top 50 AI companies from 2020 to 2024. It showed a remarkable increase in investments from $3.5 billion in 2020 to $52.8 billion by 2024, representing a 581.32% surge.

With AI investment reaching $52.8 billion, the data reveals where capital is concentrated and the major players driving innovation across industries. AI Infrastructure and Models dominate with $35.5 billion in funding, supported by OpenAI and Anthropic, reflecting investor confidence in foundational AI technologies.