African business leaders are increasingly prioritising artificial intelligence (AI) investment, but only 14 per cent believe their organisations are keeping pace with or moving ahead of AI developments, according to KPMG’s 2026 Africa CEO Outlook.
The report, launched in Lagos on Thursday, found that 72 per cent of African CEOs identify AI as a top investment priority, compared with 79 per cent globally. The findings highlight a significant gap between businesses’ ambitions to adopt the technology and their readiness to deploy it effectively.
The 52-percentage-point gap between African CEOs’ AI ambition and their perceived readiness underscores a central challenge: African businesses recognise AI’s potential, but many are still working to develop the capabilities required to deploy it effectively and at scale. The gap does not imply that African businesses are standing still; many are investing in use cases that promise efficiency, improved customer experience and better decisions.
The survey, which covered 176 CEOs across Africa as part of a global survey of 1,400 CEOs across industries, found that 48 per cent of African CEOs expect returns on their AI investments within one to three years, compared with 71 per cent globally. Meanwhile, 42 per cent expect returns to take more than three years, against 12 per cent of global CEOs.
The longer investment horizon reflects the work required to strengthen data infrastructure, integrate AI into existing systems, establish appropriate governance and develop the skills needed to realise its benefits. Some 59 per cent of African CEOs identified workforce skills gaps as a challenge, 58 per cent cited AI upskilling and training, and 52 per cent pointed to difficulties attracting and retaining talent.
Infrastructure gaps also complicate progress, with many African organisations facing unreliable power supply, limited broadband connectivity and outdated computing systems that restrict the use of data-intensive AI solutions. Data readiness remains a major challenge, with 96 per cent of African CEOs citing it as an obstacle to implementing AI within their organisations.
KPMG’s Ladi Asuni, Partner and Head of Tech Platforms at KPMG in Nigeria, said businesses needed to address data readiness, workforce capabilities, governance and trust to convert investment into measurable value. The challenge is not a lack of intent but the ability to translate ambition into action, with spending alone not enough to produce returns.
For African businesses, the message is clear: AI investment must be paired with investment in data, skills and governance. The challenge now is to build the capabilities needed to turn AI from a strategic priority into an operational reality.
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