The Digital People Market in Africa: A Future of Growth and Innovation
Digital people, digital humans or virtual avatars powered by artificial intelligence, are set to revolutionise various industries by providing realistic and interactive representations of humans for customer service, education, healthcare, social interaction, and entertainment. Africa, with its rapidly growing technology sector and increasing internet penetration, is particularly poised to become a significant player in the global digital people market.
Market Size and Growth
The global digital people market was valued at USD 21.68 billion in 2023 and is expected to soar to a whopping USD 430.71 billion by 2031, registering a compound annual growth rate (CAGR) of 45.30% during the forecast period from 2024 to 2031. This immense growth indicates digital people’s transformative potential across multiple sectors including financial services, education, training, retail, and hospitality.
Interactive Digital People: The Leading Segment
Thanks to their ability to provide personalised and engaging experiences, the “interactive digital people” segment is capturing the highest market share. And make no mistake, these digital entities are not just static representations; they interact, learn, and respond in real time, making them invaluable for customer engagement and support.
African Market Potential
In Africa, the digital people market is still in its infancy but shows promising signs of growth. With a young and tech-savvy population, the demand for innovative digital solutions is on the rise. Plus, incorporating digital people in customer service, education, and healthcare can address some of the continent’s unique challenges and open new growth opportunities.
Digital People Threats
Although digital people offer numerous possibilities, their existence also raises several challenges and concerns that require attention:
Job Displacement:
The automation capabilities of digital people can lead to job displacement, particularly in sectors where human-facing interaction can be automated. This raises concerns about the future of work and the need for reskilling and upskilling of the workforce.
Ethical Concerns:
It is still possible to distinguish between a real and digital person, but at some point in the future, this may not be possible. The question then becomes how do we ensure that they are not used to deceive or manipulate people?
Privacy:
Digital people will require collecting and processing vast amounts of personal data to function effectively. This poses significant privacy risks, as the data could be misused or fall into the wrong hands.
Biases:
AI systems, including digital people, can inherit biases from their training data or creators. This can lead to discriminatory practices and reinforce societal inequalities if not properly addressed.
These challenges underscore the need for robust ethical frameworks, transparent practices, and ongoing dialogue to ensure that the development and deployment of digital humans are aligned with societal values and norms.
Digital People Opportunities
The promising digital people market in Africa brings many opportunities to a wide variety of businesses. From AI startups looking to pioneer the development of sophisticated algorithms, to specialist agencies crafting lifelike digital personas.
AI start-ups should look at developing a uniquely African approach that suits the needs and unique cultural contexts of the African market. Specialist agencies should tap into their skills as creative powerhouses, blending art and technology to create digital people nearly indistinguishable from their human counterparts. Their expertise in designing and releasing these digital personas makes them integral to the ecosystem.
Beyond creation, there’s a vast market for businesses looking to utilise digital people, whether it be to engage with staff or with customers. Retailers can offer personalised shopping experiences, healthcare providers can simulate patient interactions for training, and corporations can use digital people for internal training and customer service, providing a consistent and scalable solution that’s available 24/7.
As the digital human market continues to grow, it promises to transform customer engagement models, educational methodologies, and even social interactions. It’s not just a trend; it’s a strategic move for businesses looking to lead the pack in the digital era.
