Estimation of Firm Labour Productivity and Sales Growth from Artificial Intelligence in Sub-Saharan African Countries

<ns3:p>The fast integration of artificial intelligence (AI) into business operations and labour processes is reshaping global economic landscapes. The study examines the effects of AI adoption on labour productivity and sales growth in selected sub-Saharan African countries using a firm-level dataset from the World Bank Enterprises from 2007 to 2024. The study employs feasible generalised least squares (FGLS), robust ordinary least squares (OLS), and high-dimensional fixed effects (HDFE) linear regression techniques. The results show that AI has a significant positive relationship with firm labour productivity and sales growth in the selected sub-Saharan African countries. However, nuances differ across countries due to varying industrial structures. Results vary across the 10 selected countries due to differences in technological readiness. These results underscore the importance of targeted policy interventions, such as upskilling initiatives and supportive regulatory frameworks, to harness AI’s benefits while mitigating adverse impacts on workers. This research contributes to the growing body of literature on technology adoption in developing economies, offering policymakers and business leaders in sub-Saharan Africa valuable insights.</ns3:p>