Energy access, global integration, human development, and institutional complementarity for artificial intelligence development in Africa

Abstract Artificial Intelligence is a key driver of economic growth and sustainable development for modern economies. Its development relies heavily on enabling conditions such as access to electricity, globalization, openness, effective regulatory quality, and skilled human capital. This study examined the dynamic relationship between Artificial Intelligence (AI) and energy access, as well as the impact of globalization, human development, regulatory quality, and globalization policy on AI development in Africa. It covered 2015 to 2023 and used the System Generalized Method of Moments. Employing panel data, it adopted a reverse approach to existing studies to examine the impact of energy poverty on AI and determined the moderating effect of regulatory quality, globalization policy, and energy poverty on AI adoption. Its main objective is to examine the dynamic influence of energy poverty on Artificial Intelligence in Africa and contribute evidence relevant to the UN Sustainable Development Goals 7 and 9. Findings show that energy access significantly undermines Artificial Intelligence development. It further revealed that globalization and human development are negative and insignificant determinants of AI development, while regulatory quality exhibits a marginally significant ( p -value = 0.057) support for AI development. Further findings reveal that the synergistic interaction between energy access and globalization policy significantly reduced the impact of energy access on AI development. Meanwhile, the marginal negative effect of the interaction between energy access and regulatory quality on AI development is insignificant. The study recommends the prioritization of affordable and reliable energy, a shift from general to strategic globalization, AI skill-related development programs, quality institutions, effective integration policies , and enabling conditions to improve AI in Africa.