AI and the future of jobs in the digital economy: Lessons for the Africa Union AI continental strategy
As Africa steps into the digital age, one of the biggest questions we face is how Artificial Intelligence (AI) will impact our jobs and economies. AI is transforming industries worldwide, and Africa is at the cusp of this revolution. But what does this mean for the everyday worker, the farmer, the teacher, or the young graduate looking for a job? We are at the beginning of this transformation. This is a rare opportunity to influence technologies that will shape our world from the start. Let us explore how Africa can actively lead in creating a future where AI works for everyone.
New opportunities on the horizon
AI holds the promise of significantly boosting Africa’s economy in ways we are just beginning to comprehend. McKinsey estimates that if Africa captures just 5% of the global AI opportunity, generative AI could add between $110 to $220 billion to African GDP annually. Envision a future where farming becomes more efficient because AI better predicts the weather and helps prevent crop diseases. This could lead to bountiful harvests and food security. There are around 250 million smallholder farmers across Africa who provide 75% of the food for the continent. AI-powered SMS chatbots could help these farmers with weather forecasts, planting guidance, and disease detection, particularly as generative AI develops to support natural language interaction in a few African languages.
Or consider healthcare, where AI could make it easier for doctors to diagnose illnesses accurately and quickly, even in the most remote areas. This would give people more people access to quality healthcare. However, the key is ensuring AI augments rather than replaces healthcare workers. AI should support doctors and nurses in delivering better patient outcomes, not eliminate their roles. This potential is a beacon of hope for the continent.
For young people, AI is not just a technology but a gateway to new job opportunities, especially in the tech industry. According to McKinsey, 10-12 million young Africans enter the labour market annually but only 3 million formal sector jobs are available. AI-driven innovation could help bridge this gap. As more startups emerge, driven by AI innovation, there will be a growing need for fresh ideas and skilled workers to develop AI solutions tailored to Africa’s unique challenges. This could lead to the creation of jobs not only in technology but across other sectors where AI can enhance efficiency and growth.
The challenges we cannot ignore
As exciting as these possibilities are, AI also brings significant challenges, particularly for employment. One of the biggest concerns is that it could replace jobs. This could lead to redundancies and higher unemployment, especially if workers do not have the skills needed to transition to new roles. However, AI should be incorporated to augment human capabilities, not replace them. The goal should not be automation for efficiency’s sake but transformation that improves the quality of work and enhances human creativity and value. Overarching effort is needed to ensure these transformations support workers rather than engaging in a race to the bottom.
The International Monetary Fund notes that while Africa’s larger agricultural and informal sectors (accounting for 85% of employment) may delay AI’s immediate impact, when disruption comes, it could disproportionately affect vulnerable groups. Women, who occupy the majority of positions in low-skilled labour and repetitive tasks, face particular vulnerability to automation-driven job displacement.
Another issue is the digital divide. Not everyone in Africa has access to reliable electricity or the internet, which are essential for benefiting from AI. Statistics from the Groupe Spécial Mobile Association (GSMA) indicate that while 94% of the global population is covered by mobile broadband, 450 million people remain uncovered, with 47% in Sub-Saharan Africa. Additionally, five of the top ten most expensive countries for mobile data are African, limiting internet use even for those with smartphones. If these gaps are not addressed, some communities could be left behind, deepening existing inequalities.
There is also the question of skills. As AI takes over more routine tasks, there is a growing demand for people with expertise in AI, data science, and other tech-related fields. Currently, only half of African countries include computer skills in their school curricula, compared to a global average of 85%. African countries score between 1.8 and 5 on the Digital Skills Gap Index, below the global average of 6. This means that education and training systems need to evolve to equip the workforce with the skills required for these new kinds of jobs. However, building AI that works for Africa requires more than just technical expertise. Multi-disciplinary approaches involving social sciences, ethics, human-computer interaction, law, and policy are equally essential to ensure AI enhances human work and creativity.
The labour dignity concern
There is also a troubling reality that must be confronted. Much of the current AI data work in Africa involves poorly paid, exploitative labor. Reports document deplorable working conditions for low-wage data annotators across the continent, with workers facing psychological harm while preparing and annotating training datasets. It is unacceptable that Africa be relegated to being the hidden army of low-skilled AI data workers. AI-related labour must be valued and dignified, with proper protections, fair compensation, and recognition of the skilled nature of this work.
Africa as a leader, not just a participant
We need a proactive approach to ensure that AI benefits everyone. The impact of AI on the future that emerges will be a consequence of technological and policy decisions made today. The African Union’s AI Strategy emphasises the importance of building our own AI capabilities, encouraging innovation, and ensuring that everyone has a fair chance to participate in this new economy. This means investing in infrastructure, like electricity and the internet, and in education so people can gain the skills they need. Africa needs strong digital infrastructure alongside human capital development as both are essential for AI to reach its potential.
Looking ahead
The future is not predetermined. Our choices today will determine whether AI exacerbates inequalities or becomes a catalyst for equitable and sustainable growth. AI offers tremendous potential to drive economic growth and create jobs, but realising this potential requires carefully designed policies and regulations that foster AI development while keeping negative effects in check. By focusing on inclusion, education, and collaboration, Africa can harness AI’s power to build a future where everyone benefits from the digital economy, ensuring that no one is left behind in this new era. This is Africa’s moment. We have the rare opportunity to influence AI while it’s still in its early stages, ensuring it reflects our values, serves our needs, and advances our shared vision of prosperity and dignity for all.
