The Future of Leadership: Why AI literacy is non-negotiable for African boards

The future of leadership in Africa hinges on a critical skill: AI literacy. As artificial intelligence reshapes industries and societies globally, African boards must embrace this knowledge to remain competitive, ethical, and innovative. AI literacy is no longer optional but essential for board members across the continent, as it equips leaders to harness these advancements responsibly and effectively oversee their organisations in an AI-driven world.

Artificial intelligence is revolutionising decision-making processes, offering tools to analyse data, predict trends, and optimise operations. Globally, AI is projected to contribute $15.7 trillion to the economy by 2030, with Africa poised to benefit significantly if its leaders adapt. Yet, many African boards lag in understanding AI’s transformative potential due to gaps in digital literacy and infrastructure. This gap must be urgently addressed to ensure African businesses remain competitive in the global market.

The oversight role of boards in AI governance is becoming increasingly critical. According to a recent Deloitte Global survey, only 14% of boards discuss AI at every meeting, while 45% haven’t yet put AI on their agenda at all. This lack of engagement is concerning, especially given the rapid pace of AI development and its potential impact on businesses. African boards must recognise that AI oversight is not just a technical issue but a strategic imperative that demands their attention and understanding.

To effectively govern in the age of AI, board members need to develop a comprehensive understanding of AI’s capabilities, limitations, and ethical implications. This knowledge enables them to ask the right questions, challenge assumptions, and provide meaningful guidance to management teams. Without this literacy, boards risk approving AI initiatives without fully grasping their implications or missing out on transformative opportunities that could propel their organisations forward.

The stakes are high for African businesses. AI has the potential to address some of the continent’s most pressing challenges, from improving healthcare access to optimising agricultural productivity. However, it also brings risks such as data privacy concerns, algorithmic bias, and potential job displacement. AI-literate boards are better equipped to navigate these complex issues, ensuring that AI adoption aligns with organisational values and societal needs.

Moreover, AI literacy empowers boards to foster a culture of innovation within their organisations. By understanding AI’s potential, board members can encourage management to explore cutting-edge solutions and allocate resources to promising AI initiatives. This forward-thinking approach is crucial for African businesses to stay ahead in an increasingly competitive global market.

The path to AI literacy for African boards requires a multifaceted approach. Board members should prioritise ongoing education about AI technologies and their applications in business. This can involve attending workshops, engaging with AI experts, and even experiencing AI tools firsthand. Some organisations are already taking steps in this direction, with 8% of respondents in the Deloitte survey indicating that they are starting to include AI specialists among their new board directors.

However, education alone is not sufficient. Boards must establish robust oversight mechanisms to ensure that AI adoption aligns with the organisation’s strategic priorities. This includes setting clear governance frameworks for AI-related initiatives, evaluating their alignment with goals such as enhancing productivity and efficiency, improving customer experience, and fostering innovation. By focusing on strategy and accountability, boards can ensure that AI delivers measurable value while safeguarding the organisation’s long-term vision and ethical standards..

Risk management is another critical aspect of AI governance that demands board attention. African boards must establish robust frameworks for assessing and mitigating AI-related risks. This includes addressing data privacy concerns, ensuring algorithmic fairness, and preparing for potential cybersecurity threats. Boards should also consider the broader societal implications of AI adoption, such as its impact on employment and social equity.

To effectively oversee AI initiatives, boards need to define clear governance structures. This may involve creating dedicated AI committees or integrating AI oversight into existing committee responsibilities. Many boards that have delegated AI matters typically assign them to the risk and regulatory committee or the audit committee. African boards should carefully consider which structure best suits their organisation’s needs to ensure comprehensive AI governance.

As AI becomes more pervasive, boards must also broaden their stakeholder considerations. While customers and employees are currently seen as the top stakeholders in AI governance, African boards should anticipate increased scrutiny from regulators, investors, and society at large. Proactively engaging with these stakeholders and addressing their concerns will be crucial for maintaining trust and social license to operate in an AI-driven future.

The journey towards AI literacy and effective governance is not without challenges. Many African organisations face resource constraints and may struggle to attract AI talent. However, these obstacles make it even more imperative for boards to lead the charge in AI adoption and governance. By prioritising AI literacy and oversight, boards can help their organisations overcome these hurdles and unlock the transformative potential of AI.

In conclusion, AI literacy is non-negotiable for African boards aspiring to lead their organisations into the future. It is the key to unlocking innovation, managing risks, and ensuring responsible AI adoption. As AI continues to reshape the business landscape, African boards must rise to the challenge, embracing AI literacy as a fundamental leadership competency. By doing so, they will position their organisations – and the continent as a whole – to thrive in the AI-driven economy of the future.