Investment in generative artificial intelligence (AI) is expected to grow by 60 percent over the next three years, according to a new report from Boston Consulting Group (BCG).
The report titled, ‘BCG AI– From Potential to Profit: Closing the AI Impact Gap,’ noted that AI remains a top priority for business leaders worldwide in 2025 as one in three companies globally is planning to allocate over $25 million to AI.
For the second consecutive year, BCG’s AI Radar global survey surveyed 1,803 C-level executives across 19 markets and 12 industries, including South Africa, Nigeria, and Morocco, to capture the sentiments of business leaders regarding AI.
Read also: Artificial Intelligence (AI) –What impact will it have on education?
It said 56 percent of companies focus their AI investments on smaller-scale, productivity-focused initiatives. Leaders also set clear goals and track top and bottom-line impact. However, 60 percent of companies surveyed are failing to define and monitor any financial KPIs related to AI value creation.
“In Africa for instance, 35 percent of companies are not defining and monitoring any financial KPIs related to AI value creation. 62 percent of these companies lack maturity in effective AI organisational change management, and 68 percent have indicated challenges hiring AI talent and upskilling their existing workforce,” it said
“CEOs are prioritising AI to drive productivity,” said Christoph Schweizer, chief executive officer of BCG. “While 75 percent of executives rank AI as a top-three strategic priority, only a quarter report meaningful value from their initiatives. The gap lies in execution—leaders focus on targeted AI initiatives, scale them rapidly, and invest in upskilling their workforce while tracking measurable operational and financial returns.”
The report further disclosed that autonomous AI agents—systems capable of achieving goals with minimal human input—are gaining traction globally, with 67 percent of executives exploring their role in AI transformation. 65 percent of companies in Africa view these agents as integral to their AI strategies.
African executives are particularly optimistic about the collaboration between AI and human talent, with 66 percent envisioning complementary roles.
It said only six percent of African executives expect AI to result in job losses. Instead, 68 percent anticipate maintaining workforce size by enhancing productivity and upskilling employees, while 19 percent foresee AI taking the lead with human oversight.
Despite the optimism, significant risks remain. The BCG AI report said that 66 percent of executives cite data privacy and security as their top concern, followed by lack of control over AI decisions (48 percent) and regulatory challenges (44 percent).
In Africa, 64 percent of executives emphasise data privacy risks, and 46 percent highlight regulatory hurdles as barriers to AI adoption.
“Cybersecurity is another critical area, with 83 percent of African companies acknowledging the need for improved AI security measures. Additionally, African firms are leading in geopolitical considerations, with 60 percent citing regulations as a factor influencing their AI adoption pace, the highest rate globally,” it stated.
The environmental impact of AI is another pressing issue. Globally, 73 percent of companies fail to prioritise energy-efficient AI solutions in vendor selection. This figure stands at 73 percent in Africa, slightly better than South America (86 percent) and North America (83 percent). Addressing this gap will be crucial as AI adoption accelerates across sectors.
Sylvain Duranton, global leader of BCG X, highlighted the “10-20-70 framework” for AI success—focusing 70 percent on transforming people, processes, and culture, 20 percent on data and technology, and 10 percent on algorithms.
“With 72 percent of African companies ranking AI as a top-three strategic priority, the region is well-positioned to leverage AI for economic growth,” it added.