Case Study: The importance of AI in emerging markets

Key takeaway

Superfluid Labs CEO and data evangelist Timothy Kotin explains the significant impact data and artificial intelligence can have in Africa, where data has traditionally been much harder to come by. From fintech to policy to microfinance, the ability to process large volumes of consumer data can have far-reaching impact across the continent.

Machines might scare policymakers from Brussels to Washington, but artificial intelligence could yield a significant developmental dividend in the developing world. In African markets, the technology behind Alexa and Siri can be harnessed to diagnose illness or address traffic gridlock.

One of the most transformative applications of artificial intelligence (AI) is in financial technology, where global investment has risen 38% over the last year. For the two billion unbanked adults worldwide, machine learning could light a path out of poverty by helping traditional lenders approve loans using hundreds of non-traditional data points. AI has the capacity to add value at the individual, small business, and the large corporate level alike across Africa.

Data is just as valuable [as it is in the West] yet harder to come by in emerging markets, where companies struggle to reach potential customers in the absence of granular insights about them. Across Africa, comprehensive, current, and accessible data about public sentiment could have wide-reaching policy impact as well as more traditional, commercial value. Startups such as Kenya’s mSurvey have stepped in, using mobile phones to build up-to-date profiles of local consumers.

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How AI can power job creation in Africa

AI is powerful at the corporate level because small business is big business. SMEs are engines for global job creation, with new businesses generating twice a many jobs as incumbents. In Africa, young companies with less than 20 employees create the most formal sector jobs. Because African markets also boast the highest share of adult business owners, extending credit to more of them means more small businesses can scale and contribute to GDP. Lenders reluctant to lend to SMEs will find themselves edged out of the industry over time by tech-driven upstarts with more inclusive credit scoring criteria. Africa’s population is growing faster than jobs created. To address the gap, we must adopt innovative technology to generate access to the finance, the key constraint for SME growth across the region.

Artificial intelligence is not a tool to be feared, but one to be welcomed and wielded by individuals, small businesses, and corporates. The result is an economic trickle-up effect whereby individuals gain by monetizing their data, marketers can develop comprehensive consumer insights, lenders can tap into new customer segments, and markets grow through job creation and more efficient use of resources. Technology may not be a cure-all, if emerging markets are ever to finally ‘emerge’, the catalytic power of non-traditional predictive models must be brought out of the shadows to the fore.

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Meltwater Platform helps Vans evidence ROI

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With Meltwater’s extensive keyword searches, Vans receives real-time updates of our initiatives

With Meltwater's extensive keyword searches, Vans receives real-time updates of our initiatives along with real-time reports in the form of dashboards.

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