The use of Artificial intelligence (AI) and Decentralized Finance (DeFi) is gaining ground consistently in Africa as various countries in the continent continue to embrace technological innovations and are exploring ways of growing their economy.
AI is the ability of systems and machines that have been simulated with datasets and other functionalities to respond to situations with little or no supervision, while DeFi refers to financial services that are developed and operated on blockchain technology to make financial services readily accessible, transparent, and decentralized.
The adoption rate for AI in Africa is quite fair as its implementation can be seen in different facets of human lives.
There are AI-enabled solutions in agriculture, health care, transportation, education, and finance, to mention a few.
DeFi, on the other hand, is yet to find a wide adoption rate in the continent, although there are use cases in some countries across the continent.
However, as more of its benefits come to light, adoption will increase as well. The intersection of AI and DeFi has so many potentials it can offer to Africa, below is how it can be useful in various sectors and facets.
Financial Industry: Here, it can foster financial inclusion much more than ever experienced in Africa. Accessible financial platforms are built with DeFi and AI is used to provide personalized support on these platforms, loans, savings, financial advice, and any other service.
Also, in combating fraud or money laundering, accurate data on user behavior and financial transactions can be gotten on the DeFi, and AI algorithms can be used to study these financial data and draw insights to detect mishaps.
Agriculture: The intersection can bring tremendous good to the agricultural system in Africa. With DeFi platforms, financial aid is accessed by farmers when they need it and with AI, they can optimize their crop yield through soil analysis and weather prediction.
Also, both AI and DeFi have the potential to improve the overall supply chain management, enhance sustainability and increase productivity.
Healthcare: AI and DeFi in healthcare will revolutionize the healthcare system in Africa. While AI improves medical research, helps develop personalized treatments, and increases diagnosis accuracy, DeFi helps in accessing funds and conducting transactions.
AI-enabled solutions can also be deployed that a patient can access during an emergency until proper medical care is available.
Education: Africa has a lot of untapped potential that is yet researched. However, with DeFi funds can be accessed to carry out this educational research. Student loans and scholarships can also be set up and accessed on these platforms.
Then, when these scholarships are secured, the AI tools are used to personalize learning thereby improving teaching and learning.
Governance: DeFi platforms can be used to track and monitor public funds as it is utilized and AI systems can be set up to identify and analyze areas for improvement.
This way there is increased transparency and accountability in governance. There are several other ways both would be beneficial to Africa, however, it would require intentional strategies, collaborations, partnerships, and implementation to explore the opportunities their intersection offers.
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