As the world continues to rapidly evolve with technological advancements, artificial intelligence (AI) is increasingly positioned as a transformative force for the global economy. A recent report by PwC, titled Value in Motion, has revealed that AI could potentially drive a significant economic boost, increasing global economic output by as much as 15% by 2035. For Africa, the continent could see a substantial uplift of 4.9 percentage points, signaling vast opportunities for economic growth, provided the right conditions are met.

This research, based on data-driven scenario analysis, reveals that the global economic dividend from AI is not guaranteed. It depends heavily on more than just technical success—it hinges on the responsible deployment of AI, effective governance, and, crucially, public and organizational trust. The study paints a picture of an economy already undergoing rapid reconfiguration, with significant changes anticipated in various sectors across the globe.

While the potential of AI is undeniable, PwC’s findings underscore that the impact of AI will be shaped by societal cooperation and trust. In more pessimistic scenarios, marked by lower trust and cooperation, the boost to the global economy could be as low as 1%, indicating the importance of managing the AI transition thoughtfully. However, in the best-case scenario, the global economic impact could be far more pronounced, with AI transforming industries, reshaping labor markets, and driving innovation across traditional industry boundaries.

A Shift in Business Dynamics: Reconfiguring Sectors for the Future

The PwC report highlights that the global economy is already undergoing a significant transformation, driven in large part by the advent of AI technologies. Businesses are under mounting pressure to reinvent themselves, adapt to new technological advancements, and respond to evolving customer demands. This transformation is particularly pronounced across six out of nine sectors in Africa, where businesses are adjusting to meet the increasing demand for innovation.

One of the key takeaways from PwC’s report is the projection that $150.54 billion in revenues are set to shift between companies in Africa in 2025 alone. This reallocation of revenue comes amid rising global tariffs and changing market dynamics, further emphasizing the need for African businesses to adapt swiftly to stay competitive.

In this rapidly evolving landscape, AI is expected to play a critical role in shaping the future of industries. The rise of electric vehicles, for example, has brought together electricity providers, battery manufacturers, technology firms, and traditional automakers to create new value in the mobility domain. This shift in business models is not limited to the automotive sector but extends across various industries, as companies increasingly look to harness AI to improve efficiency, enhance customer experiences, and streamline operations.

Dion Shango, PwC Africa’s CEO, aptly noted, “As the structure of the economy transforms, value will increasingly come from organizations that can connect the dots across traditional industry boundaries. By focusing on evolving customer needs and using technology to dramatically change the way business operates, business leaders can unlock a step change in growth.”

AI and the Climate Conundrum: Balancing Growth with Environmental Impact

While the potential of AI to accelerate economic growth is clear, the report also sheds light on the challenges that lie ahead, particularly in the context of climate change. PwC’s analysis indicates that physical climate impacts could reduce Africa’s economy by over 12% by 2035, and the global economy could see a 7% contraction due to the effects of climate change. This underscores the need for businesses and governments to consider environmental factors as they pursue AI-driven growth.

Despite these challenges, AI also has the potential to mitigate some of the environmental impact of its own expansion. The adoption of AI technologies by businesses, particularly those involved in energy and manufacturing, is expected to lead to increased energy use, particularly from data centers. However, PwC suggests that AI-driven innovations could counterbalance this energy consumption. For instance, if AI innovations lead to even a modest reduction in energy intensity by just 0.1% globally, the overall impact of AI on energy consumption could be neutralized.

AI’s role in driving energy efficiency is also emphasized in the report, highlighting how AI tools can be leveraged to optimize production processes, reduce waste, and streamline supply chains. In sectors like agriculture, AI-driven solutions are already being deployed to improve water usage efficiency, optimize crop yields, and reduce the environmental footprint of farming practices. These innovations are expected to play a pivotal role in addressing the challenges posed by climate change, ensuring that growth driven by AI does not come at the cost of environmental sustainability.

PwC’s Strategy: Unlocking Value through AI Integration

In response to the opportunities and challenges highlighted by its research, PwC is taking several strategic actions to help clients unlock the full potential of AI. The firm has already rolled out several initiatives designed to help businesses integrate AI into their operations at scale, focusing on delivering real-world impact across various industries.

One of the standout offerings from PwC is its agent OS, a cutting-edge technology that enables enterprises to orchestrate AI seamlessly across their workflows. With agent OS, businesses can integrate intelligent agents into their operations up to 10 times faster than traditional methods. This tool allows organizations to enhance productivity by automating routine tasks and streamlining complex processes, thereby freeing up human workers to focus on higher-value activities.

Additionally, PwC has focused on building AI expertise across its own workforce, recognizing the importance of continuous learning and skill development. The firm has already trained over 291,000 partners and staff globally through its Network AI Academy. Each month, tens of thousands of PwC employees participate in structured AI training programs to stay ahead of the curve and better support clients in navigating the rapidly changing technological landscape.

Beyond internal initiatives, PwC has also strengthened its strategic alliances with key technology providers, including AWS, Google Cloud, Microsoft, and Oracle. These partnerships enable PwC to leverage the latest advancements in AI and cloud computing to help clients harness the full potential of these technologies. By integrating AI tools and methodologies with its deep industry expertise, PwC aims to drive industry-specific transformations that will deliver measurable business results.

The Role of AI in Business Transformation

As AI continues to evolve, it is becoming increasingly clear that businesses must embrace these technologies if they are to remain competitive. PwC’s Value in Motion report suggests that industries will undergo a significant reconfiguration over the next decade to meet human needs in new and innovative ways. This shift will result in the formation of new “domains” that transcend traditional sector boundaries, creating fresh opportunities for growth.

One area where AI is already driving transformation is in the financial services sector. AI-powered solutions are enabling financial institutions to automate routine tasks, enhance customer service, and improve decision-making processes. These innovations are also allowing banks to better predict and manage risks, providing a more stable financial environment.

The retail sector is also seeing major disruptions, with AI being used to personalize shopping experiences, optimize inventory management, and improve supply chain efficiency. Retailers are increasingly using AI to analyze customer data and predict trends, allowing them to tailor their offerings to meet shifting consumer demands. In doing so, they are enhancing customer loyalty and driving higher sales.

Furthermore, healthcare is another industry experiencing rapid AI-driven change. AI-powered diagnostic tools, personalized treatment plans, and robotic surgery are already improving patient outcomes and making healthcare more accessible. The integration of AI into healthcare systems is also expected to reduce costs by improving efficiency and streamlining administrative tasks.

The Future of AI: Opportunities and Challenges

Looking ahead, the opportunities for AI to reshape industries and drive economic growth are vast. However, realizing these opportunities requires overcoming several challenges. One of the primary concerns is ensuring that AI is deployed ethically and responsibly. Issues such as data privacy, algorithmic bias, and the displacement of jobs due to automation must be carefully managed to ensure that the benefits of AI are distributed equitably across society.

Governments, businesses, and other stakeholders will need to work together to create a regulatory framework that fosters innovation while protecting the public interest. This includes developing clear governance structures for AI deployment, ensuring that AI systems are transparent, and building trust among consumers and employees alike.

Another critical consideration is the impact of AI on the workforce. While AI has the potential to create new jobs, it also poses the risk of job displacement, particularly in industries where automation can replace human labor. To address this, there will need to be a focus on reskilling and upskilling workers, helping them transition into new roles that require advanced technological skills.

Conclusion: Embracing the AI Revolution

PwC’s Value in Motion report provides a comprehensive view of the potential economic impact of AI over the next decade. With the right strategies in place, AI could add up to 15% to global economic output by 2035, with Africa standing to gain 4.9%. However, achieving this potential will require careful management, investment in talent and infrastructure, and the responsible deployment of AI technologies.

As businesses and governments look to the future, AI will undoubtedly play a central role in shaping the global economy. The key will be finding ways to harness its power while addressing the challenges it presents. For companies that are able to navigate this new technological landscape, the rewards will be substantial—unlocking new sources of value, driving growth, and contributing to a more sustainable and innovative future.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

2nd May, 2025