E C O N O M Y A T L A R G E AI & the Economy - How will Africa Cope?

AUTHOR: Chilombo (Olga) Priscila EconomicResearcher/Statistician@ RDJ Consulting

Courtesy:uploadwikimediaorg

Artificial Intelligence (AI) is here, and we cannot shy away from it. AI refers to the simulation of human intelligence in machines that are programmed to think and act and carry out tasks performed by humans efficiently

Despite not being very effective in the developing world due to the existence of less advanced technologies for its access and utilization, A.I. has already been present in the rest of the world and looks set to change the future AI promises to help solve global challenges like climate change and access to quality medical care, yet, it also brings real challenges for governments and citizens alike, and so, creating impacts on the economy at large The arrival of AI has left many asking questions like: “will it take our jobs?” Who will gain and who will lose from it?

These are mainly heard from developing countries especially in Africa, where unemployment, particularly among the youth, remains a real struggle In as much as this may sound immature for many, it is an issue that can not be underestimated or ignored, especially in the developing world To begin addressing this, let us take a look at the most impacted sectors and see how they can benefit from AI This will allow us to evaluate where we stand and how we can get involved to ensure that our involvement yields more benefits to us and the economy than the predicted losses.

USES & BENEFITS

Water Sector

The journey to AI adoption empowers organizations to pursue data-driven, intelligent management of water systems. AI therefore can help detect real challenges in the water sector and provide practical solutions with concrete benefits, and also predict future demand in treatment and distribution networks by analyzing historical water usage patterns

Energy Sector

As the energy sector in both emerging markets and advanced economies continue to face multiple challenges in terms of efficiency, transparency, affordability, and the integration of renewable energy sources in power systems, AI holds considerable potential to improve power generation, transmission, distribution, and consumption through improved data processing to bring about clean, affordable, and reliable energy. The application of such technologies are bound to improve power management, efficiency, and transparency, and increase the use of renewable energy sources

Oil & gas Sector

The IEA reports that the oil and gas industry will see more wearables, robotics, and the application of artificial intelligence in their operations through improved analysis and processing speed of data, such as the large, unstructured datasets generated by seismic studies

With the widespread use of such technologies, the IEA forecasts a decrease in production costs between 10% and 20%, including through advanced processing of seismic data, the use of sensors, and enhanced reservoir modeling.

Transport and Logistics Sector

Digital technologies have the potential to make the transport system more connected, intelligent, efficient, reliable and sustainable Some notable benefits of AI in the transport and Logistics sector include route optimization, inventory management, predictive fleet maintenance, workforce management, reduction of operational costs, sustainability and eco-friendliness, efficient use of space, vehicle tracking, and impact of safety and traffic accidents

According to the International Finance Corporation, AI will generate $13 trillion in revenue by 2023, bringing in at least $3.5 billion to the transportation sector.

Agriculture

AI technology in agriculture is used for field harvesting, health monitoring, weed and pest control, detection of nutrient deficiencies in soil, creating efficient irrigation systems of farmlands, identifying macro weather patterns that can have an impact on harvests, and more This has made farmers and companies benefit greatly by having healthier crops, seeing real-time field condition monitoring, higher process efficiency, reduced need for manual labor, and better harvest quality AI-powered solutions are therefore expected to not only enable farmers to improve efficiencies but they will also improve quantity, quality and ensure faster go-to-market for crops

The AI market is projected by Markets and Markets to grow from USD 1 7 billion in 2023 to USD 4 7 billion in 2028

Education

Education seems to be one of the sectors with great benefit from AI, and the Covid pandemic intensified this through implementation of digital/online learning In this sector, AI helps with the development and setup of many learning programs which can potentially simplify the teaching and learning process Apart from academic upgrades, AI can also be used to develop games and software programs The danger that lies in this however, is that learners can potentially lay back from their studies and become fully dependent on AI’s solutions to carry out theirschoolassignmentsasseenwiththeuseofChatGPT.

WHATNOW?

Atthisstage,itwouldreallybeprematuretopreciselytell whether AI will only do good to our economy or harm it instead. With time, more and more industries will embrace this technology to improve their working processes. Hence, looking at the costs and benefits brought by this technology and figuring out a way to position ourselves and ensure that we come out with morebenefitsthanlossesispossiblywhatcanbedonefor now.

Policymakers need to shape policy and regulatory settings so that they facilitate opportunities offered by digital technologies And when doing so, it is important that they consider and address important aspects surrounding privacy, interoperability, and even potential liabilityissuesofonboardingAIineconomicoperations

What is your take on AI’s applications to your community or country? The conversation continues at briefing@rdjpublishing.africa

Readings: https://www clickworker com/customer-blog/benefits-ofai/#:~:text=Automation,in%20the%20sectors%20mentioned%20bef ore https://www iea org/reports/digitalisation-and-energy https://www ifc org/wps/wcm/connect/bd3a196d-a88f-45af-bbc6e0b00790fba8/EMCompass Note 81-05-web pdf?

MOD=AJPERES&CVID=n72pj5g https://integrio net/blog/benefits-of-artificial-intelligence https://idapgroup com/blog/artificial-intelligence-in-agriculture/ https://www marketsandmarkets com/Market-Reports/ai-inagriculture-market-159957009 html

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