Is Africa’s supply chain AI ready?

The future of Artificial Intelligence (AI) is looking increasingly luminous. The global AI market is currently valued at more than $136 billion. The AI industry is expected to experience a steady growth of 37% between 2023 and 2030; estimates also show that 77% of the world’s population already uses an AI-powered device or service, even though only 33% of people are aware of this fact.

Indeed, the World Economic Forum (WEF), one of the world’s most prominent macroeconomic enthusiasts, predicts that companies looking to take on global and geopolitical uncertainties are keen on employing AI-powered tools with renewed vigour in 2023.

For the African supply chain industry, the employment of AI at this most auspicious period of global economic advancement couldn’t be more relevant. Since the onslaught of the Covid-19 pandemic, the African supply chain network has experienced cross-cutting dents that could serve as a veritable melting point for the use of AI.

Due to the “J-shaped” economic slope that came about in many African economies following the sharp decline of global oil prices in May 2020 and the decline of foreign earnings for many African countries, AI stands as a ready technological option that could boost the African supply chain industrial complex.

AI-powered data analytics tools can help to study the trade data between two trading partners and draw relevant patterns that can positively affect trade flows, thereby improving trade efficiency

Since intra-African trade currently stands at 15.2%, a comparatively measly figure when compared to the intra-African trade growth measures of America, Asia, and Europe, all of which stand at 47%, 61%, and 67%, respectively, AI trade mechanisms across the four categories of Reactive Machines, Limited Memory, Theory of Mind, Self-Awareness can rapidly transform the African supply chain ecosystem and take the intra-African trade networks to enviable heights already reached by other trade regions of the world.

Doubtless, new AI language tools like ChatGPT can be employed to smoothen the African supply chain communication process.

These are the specific ways by which AI can utilize to harness Africa’s supply chain industry:

Analysis of historical data points

We can use AI to analyse massive volumes of historical data points, making it highly useful in quantitative trading. Quantitative trading involves using computer algorithms to identify and exploit available trading opportunities. These trading opportunities are discovered through mathematical models generated with sophisticated AI tools.

For the African trade supply industry, the time to employ AI in analyzing historical trade data couldn’t be more apposite. Experts confirm that the volume of intra-African trade is significantly under-reported and that, in reality, trade between African countries is considerably higher than officially accounted for.

This under-reported intra-African trade operates under a unique phenomenon, Informal Cross Border Trade (ICBT), and it is a particular staple of African trade. Surely, ICBT can’t be a commendable thing. Not only does pervasive ICBT impede trade facilitation, but ICBT also contributes to soaring economic inflation through the unnecessary costs added on to goods by traders who have no access to cross-border trade due to lengthy trade delays experienced at the borders and other harmful bureaucratic processes questioning the honesty of smooth trade.

AI can solve all these processes through more intelligent data analysis. AI-powered data analytics tools can help to study the trade data between two trading partners and draw relevant patterns that can positively affect trade flows, thereby improving trade efficiency and increasing trade performance. Thus, highly software AI trading tools like Tickeron, Trend Spider, and Algoriz can help to reduce the pervasive ICBT across Africa grossly.

Speech recognition and natural language processing

A common language increases trade flows by 44%. However, for the 54 African countries, language differences make it arduous to facilitate trade. Conclusively, language barriers impede trade, and linguistic distances can seriously mar trade flows.
To this wise, AI speech recognition and natural language processing tools can help to smoothen out incongruities in the African trade supply industry.

Veritable voice recognition software like Dragon Professional, Google Now, Siri, Cortana, Amazon Lex, and other similar tools can be employed in trade facilitation processes. They can be used to identify the lingua franca of different trading partners.

It is estimated that the global voice and speech recognition technology market will reach $20.9 billion by 2026, underpinning many relevant supply chains areas like voice-based commerce, customer service applications, clinical documentation for the healthcare industry, and virtual assistant for automobiles.

Read also: Can artificial intelligence solve Nigeria’s ailing power grid

Spurring innovation

AI’s most valuable contribution to African trade is to spur innovation across all the different facets of the African supply chain complex. Following the commencement of the African Continental Free Trade Agreement (AfCFTA) in January 2021, 50 million Africans stand a real chance of escaping extreme poverty by 2035.

Real income across the continent could rise by 9%, and Africa’s trade exports to the rest of the world could go up by 32%. Intra-African exports could also grow by 109%, especially in manufactured goods. Indubitaby, the AfCFTA portends massive economic opportunities for the African supply chain industry and people.

Still, and here’s the catch, AI could accelerate and make these projections come to fruition. AI portends many benefits to African trade, not the least top advantages like reduction in human error, near zero trade risks, non-stop trade processes, digital assistance, creation of new inventions, increased ability to make unbiased trade decisions, reduction of repetitive and perfunctory jobs and the seamless executive of many daily trade applications, amongst many other AI generated opportunities.

Conclusion

The African supply chain is ready for the application, incursion, and introduction of various AI tools into its processes. As highlighted above, AI stands to diversify the trade and supply chain possibilities in Africa through the use of novel technological offerings.

The relevant stakeholders in the African supply chain industry, including critical policymakers, companies, and finance houses, are expected to embrace AI tools expediently. Doing this will undoubtedly take African trade to newer heights.