(Ecofin Agency) - Amid these economic opportunities and underlying tax challenges, generative AI is reshaping Africa’s digital landscape, boosting productivity and business performance.

A study supported by Alphabet, Google’s parent company, has revealed that generative AI could create an additional $30 billion in value for sub-Saharan African economies. The study highlighted that 58% of adults online strongly believe that AI could boost growth in their countries.

The analysis behind these findings used various indicators, showing how the growing use of the Internet is exposing many Africans, including entrepreneurs, to AI—often without them realizing it. Internet usage, however, is still below 70%, leaving room for further adoption.

Google has developed intuitive tools that help businesses optimize search results and digital advertising. These tools are especially beneficial to small and medium-sized enterprises (SMEs), helping them reach more targeted customers. Surveys in tech hubs like South Africa, Ghana, Nigeria, and Kenya showed that 82% of respondents use AI for research and data analysis. Other popular uses include boosting cybersecurity (79%) and idea generation (78%).

"This aligns with Google’s work to develop bold and responsible AI that makes the world a better place," the report states. Google’s research teams in Accra and Nairobi collaborate with international counterparts to develop AI solutions that bring positive change to global communities.

According to Google, these tools generated up to $16 billion in revenue in 2023 across several sub-Saharan African countries. While this shows the vast potential of a digital economy, it also presents a challenge for governments trying to tax these revenues, with no clear global solution yet in place.