Artificial intelligence has become the leading strategic priority for African CEOs as they prepare for 2026, with 71 percent now investing in AI to improve efficiency, boost competitiveness and strengthen long-term resilience. This is according to KPMG’s 2025 Africa CEO Outlook report, which surveyed 130 chief executives across Southern, East and West Africa.
The report shows a sharp rise in executive commitment to AI. More than a quarter of CEOs plan to allocate over 20 percent of their annual budgets to AI adoption. This is nearly double the global average of 14 percent and signals a growing belief that AI is central to the continent’s future economic performance.
KPMG notes a shift in how executives frame AI’s value. Instead of viewing the technology as a future growth driver, many now see it as an immediate solution for streamlining operations and improving decision-making. The sentiment is strongest in West Africa at 65 percent, followed by East Africa at 40 percent and Southern Africa at 38 percent.
However, progress is being slowed by persistent infrastructure gaps. Companies continue to face unreliable electricity, limited broadband coverage and outdated IT systems that cannot support data-intensive AI workloads. Ninety-six percent of CEOs identified data readiness as a core barrier to AI deployment, underscoring the need for improved local data storage, curation and processing capacity.
To overcome these constraints, organisations are prioritising investments in cybersecurity and digital resilience at 45 percent, integrating AI into operations at 40 percent and adopting scalable technology solutions at 34 percent.
The rapid rise of generative AI since 2022 has helped accelerate adoption across the continent. A recent GSMA study estimates that AI could contribute as much as 2.9 trillion dollars to Africa’s GDP in the coming years.
Joelene Pierce, CEO Designate of KPMG South Africa, said companies must be strategic about how they adopt AI. She noted that executives need to evaluate whether to build systems internally, buy ready-made solutions or partner with technology firms. The decision depends on an organisation’s skills, risk tolerance and desired outcomes.
The report also raises concerns about cybersecurity risks linked to quantum computing. Awareness among African CEOs remains low, with only 14 percent of leaders in West Africa and 35 percent in East Africa expressing concern about the risk posed to current encryption systems.
Talent remains central to AI adoption. Eighty-one percent of CEOs believe AI-focused upskilling will directly influence organisational performance. Sixty-seven percent have already begun redeploying employees into AI-enabled roles and 88 percent expect to increase hiring as digital transformation accelerates.
Tola Adeyemi, CEO of KPMG West Africa, said Africa’s young workforce is a strategic advantage. He added that younger talent pools create a longer runway for building future-ready skills and that generational gaps in AI literacy are less pronounced than in other regions.
West African companies lead the continent in redesigning roles to support human-AI collaboration at 65 percent and shifting staff from traditional positions to AI-enabled roles at 70 percent. East African CEOs are prioritising new hires with AI expertise at 62 percent, while Southern African executives are balancing both hiring and reskilling.
If you want, I can create a shorter version for social media, a headline list, or a pull-quote summary.
