Artificial Intelligence is rapidly reshaping Africa’s payments and e-commerce sectors, according to the newly released “AI in Africa's Payments and E-Commerce Growth Potential, Governance Gaps, and Workforce Readiness 2025” report by ResearchAndMarkets.com. The study offers a comprehensive analysis of AI adoption trends, economic impact, regulatory challenges, and workforce preparedness across key African markets, with a special focus on Generative AI (GenAI) and its transformative potential. By 2025, AI adoption in Africa’s digital economy is accelerating, driven by strategic government policies, expanding digital infrastructure, and growing public engagement. Over 75% of young Africans are reported to use AI tools at least once a week, indicating strong digital literacy and early-stage readiness. However, progress remains uneven, with significant disparities between leading markets like Nigeria, South Africa, and Egypt, and other regions facing infrastructure gaps, fragmented data ecosystems, and a shortage of skilled talent. Fintech and e-commerce are at the forefront of AI integration. In payments, Generative AI is being used to enhance fraud detection, automate customer service, and improve transaction security. Rising cross-border transaction costs and the push for financial inclusion are further fueling demand for AI-powered digital payment solutions and digital asset platforms. In retail, AI enables conversational shopping experiences, demand forecasting, and supply chain optimization, though widespread implementation is still limited by data quality and connectivity issues. The report highlights that while AI is driving innovation across banking, telecom, and insurance, regulatory frameworks are struggling to keep pace. Most African countries lack comprehensive national AI regulations, creating risks around bias, data privacy, cybersecurity, and ethical use. Some progress is visible, with countries like Egypt and South Africa establishing national AI councils and data embassies, but enforcement and coordination remain weak. Public trust in AI varies significantly by country. In Egypt, for instance, awareness of AI is high, but concerns about data protection and algorithmic fairness persist. In Nigeria, AI adoption is growing among businesses, but regulatory fragmentation and mixed views on job impacts create uncertainty. South Africa shows strong public and private sector interest in AI, with high expectations for productivity gains, yet talent shortages and governance gaps remain critical challenges. Kenya demonstrates strong public support for AI adoption, while Ghanaian CEOs report significant improvements in efficiency, revenue, and profitability from GenAI use. The report also identifies key barriers to scaling AI, including poor data governance, limited access to high-quality training data, and insufficient investment in digital infrastructure. Despite these challenges, strategic moves by major players—ranging from local startups to global tech firms—are shaping the competitive landscape, with increased collaboration between public and private sectors. Overall, the report underscores a clear opportunity: Africa’s payments and e-commerce sectors are poised for significant growth through AI, but realizing this potential will require coordinated efforts to strengthen governance, invest in workforce development, and build inclusive, secure, and transparent AI ecosystems. Without such action, the risk of widening digital and economic divides remains high.