The pressure for businesses to reinvent themselves is at some of the highest levels in the last 25 years, according to research from PwC.
By Maggie Mancini
AI has the potential to boost global economic output by up to 15 percentage points, and in Africa by up to 4.9 percentage points, over the next decade, according to research published by PwC. This would effectively add one percentage point to average growth rates—on par with the growth increment the world began enjoying with 19th century industrialisation.
The report reveals that the global growth dividend from AI is not guaranteed and depends on more than just technical success—it also hinges on responsible deployment, clear governance, and public and organisational trust. Rapid reconfiguration of the economy is already underway, the report finds. The pressure for businesses to reinvent themselves is at some of the highest levels seen in the last 25 years out across six out of nine sectors in Africa. This same research identifies $150.54 billion in revenues in Africa set to shift between companies in 2025 alone, even prior to the recent global increase in tariffs.
The research suggests that over the next decade, industries will reconfigure to meet human needs in new ways, leading to the formation of new “domains” that cross traditional sector lines. For example, the rise of electric vehicles is bringing electricity providers, battery manufacturers, tech firms, and other into the mobility domain, enabling them to create value alongside automobile manufacturers.
The analysis shows that while AI is set to accelerate growth, the costs of physical climate threats will impose economic restraints. Physical climate impacts could leave the African economy over 12% smaller in 2035, according to PwC.
Increased AI adoption is expected to lead to increased energy use by data centres. However, modest use of AI to drive energy efficiency could offset this increased use of energy. PwC estimates that the energy use and emissions impact of AI would be neutral if each additional percentage point of AI use led to innovations which cut energy intensity by just 0.1% globally.
