Africa’s AI adoption slower than global average World Bank
Written by Black Hot Fire Network Team on January 27, 2026
A recent World Bank survey indicates uneven adoption of artificial intelligence (AI) among businesses in emerging markets. The study, which examined over 2,200 companies across more than 85 countries, reveals a widening digital divide, particularly in Sub-Saharan Africa and the Middle East.
The survey was conducted in June 2025 and focused on companies supported by the World Bank Group’s private-sector arm or by private equity and venture capital funds.
Regional Adoption Disparities
AI adoption varies significantly across regions. Approximately 40 percent of firms in emerging markets have implemented some form of AI, either for internal operations or customer-facing services. However, this rate remains lower than those observed in developed economies. Sub-Saharan Africa and the Middle East exhibit the lowest adoption levels, followed by South and East Asia. Emerging Europe and Central Asia, along with Latin America and the Caribbean, demonstrate adoption rates closest to global leaders, with roughly half of firms integrating AI. These differences are attributed to variations in digital infrastructure, firm capabilities, access to skills, and the maturity of local technology ecosystems.
AI Usage Intensity
Among companies utilizing AI, the intensity of usage differs. Nine percent deploy AI solely for internal operations, while seven percent use it exclusively for external products or services. Nearly a quarter integrate AI across both internal and external functions. The World Bank notes that firms embedding AI across multiple functions are better positioned to achieve cumulative productivity gains, compared to those using it for isolated tasks.
Digital-First vs. Traditional Firms
A significant divide exists between digital-first and traditional businesses regarding AI adoption. Sixty-four percent of technology-based firms reported using AI, compared to just 16 percent of non-digital firms. The report attributes this to the ease of integrating AI tools, particularly those based on large language models, into businesses already operating largely online.
Influence of Company Age
Company age also plays a role in AI adoption. Only 10 percent of firms founded before 2000 reported using AI, contrasting with over 50 percent of companies established after 2015. This is described as a generational shift, with newer firms increasingly “born digital” and incorporating AI from their inception.
Sectoral Differences in Adoption
Adoption rates vary considerably across sectors. Digital industries lead in AI usage, with EdTech (86 percent), software-as-a-service (73 percent), AgTech (70 percent), HealthTech (63 percent), and Fintech (54 percent) reporting high adoption rates. EdTech demonstrates the highest adoption, particularly for external applications like personalized learning tools. Within traditional industries, professional services show the highest uptake, with 38 percent of firms using AI, compared to between three and 20 percent in other non-digital sectors.
Future Considerations
The World Bank emphasizes that this survey provides an early snapshot and that further data and analysis are needed to fully understand the drivers of AI adoption and its impact on firm performance and development outcomes. While early adopters in emerging markets are reporting gains in efficiency and product innovation, the low adoption rates in Africa and the Middle East risk exacerbating existing economic disparities. Addressing constraints related to infrastructure, skills, and digital readiness is crucial.
