Generative AI - Kenya

The Artificial Intelligence market in Kenya is witnessing remarkable growth, fueled by factors such as the country's increasing adoption of digital technologies, growing awareness about the importance of AI in various industries, and the convenience offered by online services. This extraordinary growth rate is primarily driven by the government's initiatives to promote AI adoption and the growing demand for advanced technologies in sectors such as healthcare, finance, and transportation.

Customer preferences: Consumers in Kenya are increasingly turning to Generative AI technology for personalized and efficient solutions in various industries such as healthcare, finance, and education. This trend is driven by the country's rapid digital transformation and a growing demand for advanced AI tools. Additionally, the rise in mobile and internet penetration has led to a surge in demand for AI-enabled virtual assistants for everyday tasks and decision-making, reflecting a shift towards embracing technology for convenience and efficiency.

Trends in the market: In Kenya, the Generative AI market is experiencing a surge in demand for AI-powered chatbots and virtual assistants in customer service and sales. This trend is expected to continue due to the increasing adoption of digital technologies and the need for businesses to enhance customer experiences. Additionally, there is a growing trend of using AI for predictive analytics in industries such as healthcare and finance. This has significant implications for industry stakeholders as they strive to stay competitive and meet the evolving needs of their customers. Furthermore, the rising interest in AI presents opportunities for collaboration and partnerships between local and international players in the Generative AI market in Kenya.

Local special circumstances: In Kenya, the Generative AI market in the Artificial Intelligence market is driven by the country's technological advancements and growing investment in AI research and development. Additionally, the government's initiatives to promote digital infrastructure and the growing start-up culture have created a conducive environment for the market's growth. Moreover, Kenya's unique geographical location and cultural diversity have influenced the adoption of AI in various sectors such as agriculture and healthcare, creating a demand for generative AI solutions tailored to these local needs.

Underlying macroeconomic factors: The growth of the Generative AI market is also influenced by macroeconomic factors such as technological advancements, regulatory support, and investment in AI infrastructure. Countries with favorable regulatory environments and strong investment in AI technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing demand for automation and efficiency in various industries, coupled with the growing adoption of AI technologies globally, is driving the demand for Generative AI solutions.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.