CEOs considering AI to boost businesses

 

DAR ES SALAAM: EAST African CEOs prefer to invest in Artificial Intelligence (AI) in an effort to maximise profits a new report released shows.

The KPMG East Africa CEO Outlook Survey of 2023 report shows that 50 CEOs surveyed or 72 per cent prefer investing in AI technology considering its benefits such as fraud detection, cyber-attack response, personalised customer engagement and faster analysis of data.

Despite the eagerness, CEOs are fully aware of the risks that come with the implementation and some of them see it as a double-edged sword since it helps in cyber-attack response but also opens avenues for new attacks.

KPMG Africa’s Partner and Head of Advisory Mr Gerald Kasimu said in the report that new technologies could give businesses ways to deal with the stiff competition in the market.

“When it comes to digital transformation, a hesitant mindset could prove costly and not just because competitors will continue to invest, new technologies can give businesses ways to deal with the market difficulties,” stated Mr Kasimu.

Furthermore, the report shows that East Africa’s CEOs are also optimistic about the growth prospects of their companies over the next three years despite a challenging macroeconomic landscape.

AI is the ability of a digital computer-controlled robot to enhance the speed, precision, and effectiveness of human efforts.

The KPMG Outlook Survey leverages the global CEO Survey concerning the prospects of their businesses and identifying significant risks that their businesses are facing and also on the opportunities in today’s environment conducted from five EAC counties of Kenya, Uganda, Tanzania, Uganda, Rwanda, and Ethiopia

It was shown in the report that 72 per cent of CEOs are confident of the growth of the global economy despite numerous factors including currency inflation, the impact of climate change, and geopolitical pressures that continue to hit households and businesses in the region.

KPMG Tanzania’s Partner and Country Leader Mr Alexander Njombe said while navigating the ever-shifting business landscape, leaders are confronted with a delicate balance requiring decisions to be made in a volatile environment, particularly under heightened Environmental, Social, and Governance (ESG) scrutiny.

“Woven into business strategies, ESG principles emerge as potent catalysts for building brand reputation and enhancing employee engagement as CEOs from across the globe gear up for increased scrutiny, a prevailing majority has shown readiness and confidence in addressing multiple challenges in the marketplace,” said Mr Njombe.