77% of SA CEOs are worried about ‘ethical concerns’ in adopting AI

A new KPMG report, the 2024 CEO Outlook Survey – Africa Edition, reveals that 77% of CEOs across Africa are concerned about the ethical challenges that may arise with the adoption of Artificial Intelligence (AI).

This concern is growing as leaders in Africa have been focusing more and more on using new technology to grow their businesses.

KPMG’s survey, which gathered insights from over 130 CEOs from Southern, East, and West Africa, has shownthat while there is a growing importance for AI in business, it will by no means be risk-free.

According to the KPMG’s CEO Ignatius Sehoole, who delivered the insights from the report at a recent media address, many leaders see AI as a tool to gain a competitive edge.

But, he said: “CEOs are becoming increasingly aware of the ethical concerns it brings. As the report has revealed, CEOs said ethical challenges are one of the most difficult aspects of introducing AI into their businesses. These include worries about bias, fairness, and the potential misuse of AI,” he said.

Martin Kimani, Associate Director at KPMG in Africa,  spoke on the need for companies to address these concerns. “We need to ensure this technology is applied safely and securely,” he said, adding that cybersecurity and preparedness are also ongoing concerns.

CEOs CERTAIN THAT AI WILL NOT REPLACE HUMAN WORKFORCE

Another key finding from the survey is that most African CEOs believe AI will not replace human jobs, but will instead require upskilling.

“According to the report, 81% of CEOs in Africa think AI will not lead to major layoffs, but they do agree that workers will need new skills to keep up with the technology,” Kimani said.

Kimani also noted that nurturing a cybersecurity-centric culture is important. “Making sure that AI is both safe and ethical will ask of some companies to work on bridging skills gaps and preparing their workforce for the changes AI brings,” he said.

Generative AI

Generative AI, a type of AI that can create new content, is also gaining traction. KPMG’s survey shows that 73% of CEOs believe their leadership teams understand how generative AI will reshape business models, offering new opportunities. However, Sehoole said that implementing AI successfully requires careful planning.

“In Africa, CEOs are already looking to adopt AI across various sectors. The report indicates that 78% of African CEOs see potential for AI in the ICT sector, which is significantly higher than the global average of 68%,” he said.

Geopolitical and economic challenges

While AI is a growing priority, CEOs are also dealing with broader challenges such as geopolitical tensions and economic uncertainty. These factors are impacting businesses globally, and Africa is no exception. KPMG’s Global Geopolitics Lead, Stefano Moritsch, explained that shifts in global politics are putting pressure on CEOs to rethink their strategies, especially when it comes to supply chains and trade.

Despite these challenges, Sehoole said that African CEOs remain optimistic about the potential of AI to drive growth. However, the ethical concerns surrounding its adoption remain a key issue that needs addressing.