Economic Impact: 81% of Nigerians believe AI will change the economy

Artificial Intelligence (AI) is no longer a futuristic concept: it has quickly become a bedrock of modern living, business and advertising. A recent survey has shown that a significant 81% of surveyed Nigerian adults believe that it will positively change the economy.

“Our life with AI”, a second perception report by Ipsos and sponsored by Google which covered 21,000 interviews across 21 countries showed a significant positive shift in people’s thoughts about the technology. It shows that globally, generative AI usage varies and goes beyond experimenting with the technology: people are using AI not only to entertain but to support their work, personal projects, and education.

Locally, the report shows that a substantial 87 per cent of Nigerian respondents feel that AI’s potential benefits outweigh the associated risks, suggesting a strong belief in the positive impact of AI.

It also shows that 70% of the population surveyed reported using generative AI in the past year, which is significantly higher than the global average of 48%. Furthermore, 90% of the survey respondents in Nigeria anticipate AI having a positive impact on science and medicine, demonstrating the widespread belief in the potential of AI to drive progress in these sectors.

This reflects the sentiment of the Federal Government of Nigeria which recently launched a free AI Academy through the Ministry of Innovation, Science and Technology (FMIST). The programme will train Nigerians in cutting-edge AI skills.

Recall that in November 2024, the Federal Ministry of Communications, Innovation & Digital Economy (FMCIDE) announced the selection of 90,000 fellows in the third cohort of its 3 Million Technical Talent (3MTT). 

Since last year, increased usage of AI has driven greater excitement about the opportunity AI presents and AI’s ability to power economic growth. The report reveals that a near majority of the global public (48%) now report that they have used generative AI in the last year.

Explaining the findings, Brendon Kraham, Google’s VP of Search and Commerce, Global Ads Solutions revealed that Google’s AI Overviews, powered by Gemini, are demonstrating how AI can provide richer, more conversational answers, leading to increased user engagement and exploration.

"We're observing a significant evolution in how people interact with technology and brands. This evolution is driven by AI and characterized by a multi-modal consumer journey, where searching, streaming, scrolling, and shopping seamlessly intertwine", he added.

He explained that consumers are no longer confined to linear paths. They seamlessly transition between searching, streaming on YouTube, scrolling through Shorts, and shopping across Google’s platforms. This convergence is exemplified by the rise of visual search with Google Lens, where nearly 20 billion monthly searches demonstrate the power of seeing and searching.

Google and YouTube hold a unique position of trust, guiding consumers throughout their purchase journeys. The Ipsos research confirms their leading role in influencing buying decisions. With over a billion daily shopping interactions and billions of hours of YouTube content watched, Google’s scale is unmatched.

YouTube’s dominance in streaming is strengthened by the rise of connected TVs, and the rapid growth of Shorts.

Spotlight on Nigeria: AI & Digital Growth in a Dynamic Market

These global trends are particularly resonant in Nigeria, a market experiencing rapid digital transformation and a strong embrace of AI.

Recall that the report indicates that Nigerians are at the forefront of AI adoption, with 70% reporting using generative AI in the past year, significantly above the global average. Specifically, the numbers describing the interaction of Nigerians with YouTube are interesting.

For instance, YouTube’s watch time in Nigeria grew by over 50% year over year (May 2023 vs 2024), highlighting the platform’s increasing popularity. According to Google, the video content platform reaches over 30 million people in the country aged 18+, with significant engagement among younger demographics (over 11 million aged 18-29).

The growing use of connected TVs is very evident, with over 18 million Nigerians that are older than 18 watching YouTube on connected TVs. The report also indicates that over 500 thousand citizens between 18-29 watch Youtube on connected TVs.

"78% of online businesses agreed that the costs of starting a business have been reduced substantially because of internet tools such as Google Search, Gmail, Google Docs, Google Workspace or Google Business Profile", the report shows.

overall, the report also shows that the multi-modal consumer journey, with the integration of shopping, search, and video, is very relevant in Nigeria, a very mobile-first market. Consequently, it concludes that the growth of visual search and AI-powered shopping tools will greatly assist Nigerian consumers and businesses.