Africa (Commonwealth) _ Due to economic challenges, African businesses from Nairobi to Lagos are racing to employ artificial intelligence to reduce their marketing and advertising expenses in advance of challenging 2024, which is causing fear over possible job losses.
Businesses are cutting their advertising expenses by utilizing AI-generated models, voices, and visuals in their TV and internet advertising campaigns. According to the World Advertising Research Centre (WARC), ad expenditure in sub-Saharan Africa decreased by 11.6% in 2023; however, a modest recovery is anticipated this year, led by a 6.1% gain in South Africa.
Kenya’s largest advertiser, Safaricom, the top telecom provider in East Africa, debuted what it claimed to be the continent’s first artificial intelligence-generated television commercial in August and has subsequently launched more AI-powered advertisements across several channels.
Other Kenyan businesses that have implemented AI in their advertising include the publisher Kartasi Group, who used AI-generated graphics on the cover of their practice books, the popular bread brand Supa Loaf, which used AI-generated images on billboards, and the private school group Pioneer, which ran AI-generated TV adverts. Coca-Cola worked with regional influencers in Nigeria to launch an AI-powered campaign over the holiday season.
The recent year has seen a rise in the application of AI, driven by the growing acceptance of generative AI, which has led to a decline in the economy of several of the largest African nations. Businesses in Kenya and Nigeria are struggling with low profits as a result of challenging macroeconomic factors including rising inflation and declining local currencies.
Chukwuduzie Ikwuegbu, creative director of DDB Lagos, an advertising firm in the commercial hub of Nigeria, stated that marketing expenditures are getting smaller on a worldwide scale and that local issues compound this situation. According to him, most agencies are becoming more aggressive with client budgets as a result of notable multinationals leaving Nigeria as a result of the unstable foreign currency environment (Semafor Africa).
The increasing popularity of generative AI platforms like ChatGPT and Midjourney will mean that organizations of all sizes will eventually figure out how to use these tools to save expenses and improve productivity.
Kenya’s current challenging economic conditions make it extremely crucial for firms to keep expenses down. Last year, nine firms that are listed on the Nairobi Securities Exchange (NSE) issued profit warnings; the majority of these companies attributed their lower profitability on the challenging economic conditions. Kenyans’ purchasing power was negatively impacted by the high cost of living in 2023, as the shilling declined 21.3% vs the US dollar.
According to David Karega, head of Woodrow Communications’ East and Southern Africa, this may be part of the reason why AI is being used in advertising in Kenya. According to him, “the opportunities and work flow that used to go to models, photographers, and production companies is changing.” “Creatives are rushing to comprehend and incorporate AI into their work as a result of the immediate impact.”
According to Anthony Irari, a marketing expert based in Nairobi, Kenyan businesses of all kinds can take advantage of the opportunity to reduce costs and time by minimizing human intervention. He stated, “You can use AI and have the billboard printed by the end of the day,” in place of a shoot that would need weeks to arrange and carry out.
Unlike governments elsewhere in the world, African states are not cooperating to place limitations on the applications of artificial intelligence. Industry insiders also lack access to the powerful trade unions that allowed American film and television industry members to negotiate a contract restricting AI use.
Concerns over AI’s long-term effects are understandable among Kenya’s creative industry workers, especially given that corporate contracts are one of the main sources of income for many in the field, including designers, models, photographers, copywriters, and others. Irari projected that a large number of small advertising agencies “would die” as companies brought their creative work in-house, aided by artificial intelligence, and concentrated more on brand narrative and collaborations with content producers.
Photographer Brian Saina told Semafor Africa that “many people will have to add value in whatever they do to stand out, including by using AI, or pick up new skills, in order to survive.” “The companies cannot give up on what is a less expensive option for them.”
