Skip to main content Skip to main navigation menu Skip to site footer
BIREV: Business and Investment Review Jurnal manajemen dan ekonomi terbaik
Articles
DOI: 10.61292/birev.140
Published: 2024-12-11

The Potential and Challenges of AI Adoption in Marketing Across Africa: Opportunities for Digital Transformation

Faculty of Management Sciences Lagos State University
Faculty of Management Sciences Lagos State University
Artificial Intelligence Marketing Africa Digital Transformation E-commerce Fintech AI Adoption Consumer Personalization Infrastructure Capacity Building Opportunities Digital Economy AI Solutions Policy Framework

Abstract

Artificial Intelligence (AI) has the potential to revolutionize marketing practices across Africa, offering businesses tools to enhance customer engagement, personalize experiences, and optimize decision-making. This study explores the opportunities, challenges, and feasibility of adopting AI in marketing within the African context. Through a mixed-methods approach combining literature review, surveys, interviews, case studies, and data analysis, the research identifies key drivers of AI adoption and the barriers hindering its widespread implementation. The findings reveal that while countries like South Africa, Kenya, and Nigeria are at the forefront of AI adoption, challenges such as limited digital infrastructure, high costs, skill shortages, and consumer skepticism remain significant obstacles. Furthermore, the lack of comprehensive policies and region-specific AI solutions further impedes the technology's full potential. Despite these challenges, the study highlights the immense opportunities AI presents in sectors like e-commerce and fintech, where localized AI solutions can drive inclusive economic growth. The research provides strategic recommendations for overcoming barriers, including investments in digital infrastructure, capacity-building initiatives, and the development of affordable, contextually relevant AI solutions. Ultimately, the study argues that with the right investments and policy support, AI has the potential to play a pivotal role in transforming marketing practices and contributing to Africa's digital and economic growth.

References

  1. Africa – growing investment in tech startups. (2018). Africa Research Bulletin: Economic, Financial and Technical Series, 55(7). https://doi.org/10.1111/j.1467-6346.2018.08473.x
  2. Arnold, Z., Rahkovsky, I., & Huang, T. (2020). Tracking AI investment: Initial findings from the private markets. Center for Security and Emerging Technology. https://doi.org/10.51593/20190011
  3. Brock, S., & Tabaei, S. (2019). Library and marketing class collaborate to create next generation learning landscape. In At the Intersection of Education, Marketing, and Transformation (pp. 101–109). Academic Studies Press. https://doi.org/10.1515/9781618113191-007
  4. Chapter 10: The AI adoption mindset. (2024). In Using AI in Marketing (pp. 105–110). De Gruyter. https://doi.org/10.1515/9781501519765-014
  5. Clark, V. L. P., & Ivankova, N. V. (2015). Mixed methods research: A guide to the field. SAGE Publications.
  6. Daramola, A. A. (2024). Fintech rulemaking: Evidence from Middle East and Africa. In The Palgrave Handbook of FinTech in Africa and Middle East (pp. 1–32). Springer Nature Singapore. https://doi.org/10.1007/978-981-97-1998-3_19-1
  7. Fenyk, C. (2023). AI unleashed: Harnessing artificial intelligence to start and grow your business. Fenyk Enterprises LLC.
  8. Figure 24. The internet connection speed is still relatively modest in some countries. (n.d.). https://doi.org/10.1787/888933747983
  9. Hou, S. C. (n.d.). AI for entrepreneurs: How to leverage artificial intelligence for business success: Harness cutting-edge AI to streamline operations, drive growth, and outpace your competition. Kokoshungsan Ltd.
  10. Nah, F. F.-H., & Siau, K. (2019). HCI in Business, Government and Organizations. eCommerce and Consumer Behavior: 6th International Conference, HCIBGO 2019, Held as Part of the 21st HCI International Conference, HCII 2019, Orlando, FL, USA, July 26-31, 2019, Proceedings, Part I. Springer.
  11. Newman, I., & McNeil, K. A. (1998). Conducting survey research in the social sciences. University Press of America.
  12. Nwokolo, S. C., Singh, R., Khan, S., & Kumar, A. (2024). Technological pathways for Africa’s net-zero economy: Technology solutions to unlock Africa’s sustainable future. Elsevier.
  13. O., G., Christopher. (2013). Emerging business opportunities in Africa: Market entry, competitive strategy, and the promotion of foreign direct investments: Market entry, competitive strategy, and the promotion of foreign direct investments. IGI Global.
  14. Onwuegbuzie, A. J., & Frels, R. (2016). Seven steps to a comprehensive literature review: A multimodal and cultural approach. SAGE.
  15. Punch, K. (2000). Developing effective research proposals. SAGE.
  16. Sudhir, K., & Toubia, O. (2023). Artificial intelligence in marketing. Emerald Group Publishing.
  17. Tesar, G., Anderson, S. W., Traore, H., & Graff, J. (2018). Marketing management in Africa. Routledge.
  18. Tiekam, A., & Myres, H. (2023). Digital leadership skills that South African leaders require for successful digital transformation. In Technological Leapfrogging and Innovation in Africa (pp. 184–206). Edward Elgar Publishing. https://doi.org/10.4337/9781800370395.00018
  19. Tordoff, W. (1997). Government and politics in Africa.

How to Cite

Alice, S. I., & Ebuka, O. D. (2024). The Potential and Challenges of AI Adoption in Marketing Across Africa: Opportunities for Digital Transformation. Business and Investment Review, 2(6). https://doi.org/10.61292/birev.140