The market analyst Samuel Simon has found himself a highly productive office assistant during the year. His new help works for free round the clock without a break and provides researched solutions to his inquiries.

"I'm productive multiple times over," he told Fortune.

Samuel relies on the free-to-use AI service for tasks ranging from brainstorming ideas to refining his writing. He used his cousin's phone number from the United States to receive a one-time password and access the service before it was accessible in Ethiopia and has been using it every day since.



"I no longer mull over the tedious tasks," he said.

A new era of productivity is ushered as Artificial Intelligence (AI) emerges transforming the rapidly evolving technology. The chatbot developed by Open AI in 2022 drastically changed the work landscape worldwide in less than two years. Its impact has grown to be felt across industries in a year. The journey began with the groundwork laid by visionaries like Alan Turing in the 1950s. Ethiopia also hopped on the complex terrain, with both challenges and opportunities on the horizon.

The idea that machines could, very much like humans, use available information and reason to solve a problem would require significant leaps in computer technology, engineering and hundreds of millions of dollars in investments before it could blossom into something that rewards students with additional leisure hours.

Bamlak Tsegaye, a third-year information technology student at Hope University College, said life has gotten significantly easier after discovering the enormous powers of artificial intelligence. The service allows him to be more creative and discover resources of information that he would not have found otherwise.

He expects AI to be included in every service and industry as more people learn of the ways it can help their businesses.



"I think it improves productivity," Bamlak said, candidly noting the drawbacks like becoming reliant.

The economic impact of AI is underscored by contrasting viewpoints. While Gary Kasparov's concept of "augmented intelligence" offers an optimistic perspective, there are concerns about job displacement due to automation. British telecom's plan to trim 55,000 staff by 2030 and the loss of over 3,900 US jobs in 2023 depicts the challenges faced in the job market.



Kasparov has a famous saying that goes "I'm the first man to lose his job to AI," after losing to a supercomputer developed purposefully by International Business Machines (IBM) to beat the 15-year reigning chess world champion.

The transformative potential of AI is undeniable but it raises questions about the future of work and the need for adaptive strategies in the face of automation. The acknowledgement of both the positive and negative aspects is crucial for informed decision-making.

AI's influence extends beyond language models, with ongoing consultations in Ethiopia exploring its application in predicting loan defaults for commercial banks. From agriculture to complex manufacturing, it is positioned as a tool for optimisation and enhancement.

Bisrat Derbibsa (PhD), researcher and dean at Addis Abeba University Institute of Technology, recognises vast potential applications for AI past the typical uses that have become popular over the past two years.


He revealed an ongoing consultation by researchers at the university with commercial banks in Ethiopia to usher in a system that can predict potential loan defaults by evaluating customer data. A procedure similar to determining creditworthiness will be applied while data will be assessed to determine the probability of defaulting on a loan at a future date.

Birsrat recognises the need for a robust policy environment, starting from the data protection law that is currently in parliament as well as the national policy on AI that has yet to be made.


"Battling ideas on emerging technology is critical," he told Fortune.

He acknowledges the need to balance the evolving powers of AI with the ethical values and principles of society, much like has been done in other technological revolutions. Remarking on the ever-increasing application of artificial intelligence in college campuses, Bisrat recommends a meticulous calibration between outright plagiarism and minor assistance in grammar or spelling.

The potential for AI to revolutionise industries is vast. However, Ethiopia faces data scarcity, computing power limitations and restrictive policies. Calls for a robust policy environment, including data protection laws and national policies echo the need for a balanced approach to its development.

Prime Minister Abiy Ahmed's (PhD) assent to power ushered discussion around AI-powered services to ministerial offices and administrative halls. However, the tech literacy rates and risk-averse investment climate pose another hurdle while a defensive attitude toward embracing new technologies, coupled with bureaucratic obstacles, impedes growth.

Taking on the challenge, private sector initiatives have paved a conducive environment.

Initially dubbed Addis AI labs with five tech enthusiasts with a 110,000 Br capital, iCOG Lab has developed AI-powered technologies in collaboration with international organisations and lobbied several banks to adopt digital financial solutions. They aim to address resource optimisation, crop prediction and sustainable farming practices.

Hiruy Tsegaye, part owner and product manager at iCOG, emphasises the need for data portals and lobbies for government support in creating avenues for accessing relevant and high-quality data. He said it significantly determines the applicability, reliability, and potential for continuous improvement.

Identifying potential areas of investments for both the government and the private sector with little feedback, Hiruy recalls drafting a 200-page road map nearly a decade ago. Case in point was the agriculture system which only cost around four million Birr and relied on readily available public data to increase efficiency.


"The government's willingness will need a reflection in policy," Hiruy said, indicating that nearly everything they do is for international markets.

The Bank of America estimated in February last year that the amount of money that global revenues associated with AI software, hardware, service and sales will likely grow at 19pc a year. It will reach 900 billion dollars by 2026, compared with 318 billion dollars in 2020. It further posits the possibility of 15 trillion dollars in global contributions to the economy by 2030 as more corporate investment flows into the sector.

There is optimism about creating a capable AI workforce in Ethiopia. Investment in education is deemed essential to fill gaps in the international labour market, providing opportunities for emerging roles in the sector.

For Menore Tekeba (PhD), an AI researcher, the country's large young population can be a valuable asset in creating a skilled workforce capable of engaging in emerging roles propelled by AI. However, the integration into education raises questions about maintaining academic integrity.

"Every sector will be transformed by machine intelligence," he said.

Menore recommends small-scale models in specific sectors like banking for a country like Ethiopia, which has not compiled census data in more than a decade, as an early stepping stone. The dangers of deep fakes, unauthorized data access and potential surveillance capacities that emerge could be balanced with strict regulation and open-ended liberalisation.

"Constantly evolving can mitigate the potential pitfalls," he told Fortune.



PUBLISHED ON Jan 07,2024 [ VOL 24 , NO 1237]


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