African businesses are investing in artificial intelligence (AI), but gaps in implementation readiness, data governance and technical skills could delay returns, according to 2026 KPMG Africa CEO Outlook.
The report found that 42% of African CEOs expect AI investments to take three years or longer to deliver a return, while 71% of global CEOs anticipate returns within one to three years.
The study surveyed 1,400 executives worldwide, including 176 African CEOs leading organisations with annual revenue of more than US$500 million. It found that 72% of African CEOs consider AI a top investment priority, compared with 79% globally.
However, only 14% of African businesses believe they are keeping pace with or moving ahead of AI developments, compared with 66% of their global counterparts.
“The sharper difference therefore lies in perceived readiness rather than investment intent: African CEOs are considerably less confident that their organisations are advancing quickly enough to keep pace with AI,” the report noted.
The findings point to a gap between investment ambitions and the organisational capabilities needed to deploy AI at scale. Legacy IT systems, data governance requirements and shortages of technical skills could complicate implementation.
Cybersecurity is another concern, with 31% of African CEOs identifying cyber breaches and unmanaged data security exposures as the main threats to their organisations’ growth.
Regional differences in AI adoption
AI implementation varies across Africa, reflecting differences in infrastructure, skills, data readiness and operating environments.
In West Africa, 63% of CEOs said agentic AI was already having a transformational or significant impact on their operating models, compared with 48% across Africa.
The report also cited a Central Bank of Nigeria fintech study indicating that 87.5% of Nigerian fintechs use AI for real-time fraud detection, while 37.5% use it for credit scoring.
Despite these applications, data readiness remains a constraint. The report said only 10% of West African CEOs were confident their organisations were keeping pace with AI developments, although 70% remained cautiously optimistic.
Data readiness was cited as a constraint by 73% of respondents in the region, compared with 55% across Africa.
In Southern Africa, AI investment is increasingly linked to broader operational changes rather than software adoption alone. Although 79% of CEOs in the region prioritise AI capital expenditure, only 20% believe their organisations are keeping pace with technological developments.
Workforce changes are part of the response. The report found that 67% of Southern African CEOs were redeploying employees into AI-enabled roles, while 57% were redesigning team structures to support human-AI collaboration.
“The Southern African perspective places workforce redesign at the centre of AI strategy,” the report said, adding that governance and human oversight should be built into operating models from the outset.
Reliable electricity, connectivity and supporting infrastructure also remain important to sustaining digital operations in the region.
In East Africa, CEOs appear to be taking a more measured approach to AI spending. Although 74% consider AI a priority, 78% plan to allocate 20% or less of their IT budgets to AI over the next 12 months.
Implementation priorities include improving process efficiency, cited by 64% of respondents, and threat detection, cited by 56%.
North African CEOs reported a stronger focus on regulatory compliance and data security. While 56% identified AI as a top priority, none said their organisations were keeping pace with developments.
Regulatory differences and ethical concerns are contributing to a cautious approach, with 75% of CEOs prioritising internal data governance and data sovereignty controls before expanding AI deployment.
Turning AI ambition into business value
For African enterprises, the findings suggest that investment alone will not guarantee returns. Organisations also need reliable data, appropriate governance, skilled employees and infrastructure capable of supporting AI applications.
“Turning AI ambition into business value requires more than technology. It calls for trusted data, capable people, strong governance, and a clear focus on where AI can make the greatest difference,” said Joelene Pierce, managing partner for technology and innovation at KPMG One Africa.
Tola Adeyemi, senior partner and CEO of KPMG One Africa, said African businesses were confident in their growth prospects but needed to make deliberate investment and resilience decisions.
“The opportunity is to translate the continent’s resources, markets, and entrepreneurial capacity into more productive, competitive, and sustainable businesses,” he said.
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