AI's Global Power Shift: New Players, New Rules
From AEO replacing SEO to data centers reshaping digital geography, how Africa, the Middle East are positioning in the AI race
I know it’s been all #Embedded Podcast in the last few newsletters. I’ve been so thrilled at the support, the response and the conversations. Thank you.
Oh. I finally got back into running and hit a 5k run. This weekend. I’m not sharing the final time (slow) but I got out there! Working back up to the half marathon.
Over the coming weeks, I want to spend some time catching you up on all that’s going on. So look out for more Substacks with news and tool updates that you could consider integrating into your workflow. We will start with the news part today, stories that caught my eye.
But First …
Embedded Season Video
We just wrapped our special series of Embedded recorded at the Global AI Summit on Africa in Kigali. The Rwanda Centre for the Fourth Industrial Revolution partnership helped us showcase incredible voices shaping Africa's AI future. If you've been following along, you know we covered everything from language models for Africa's 2000+ languages to Rwanda's ambitious AI roadmap.
Check out our season trailer. We hope you like it.
If you missed any episodes, catch up on The Rundown Studio , YouTube, or your favorite podcast platform.
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And now a news snapshot…
SEO is Dead, Long Live AEO: The Rise of Answer Engine Optimization
We've all spent years trying to crack Google's algorithm, but there's a new game in town. As AI chatbots like ChatGPT and Claude become the front door to information, "Answer Engine Optimization" (AEO) is quickly replacing traditional SEO.
A new digital marketing paradigm is emerging: "Answer Engine Optimization" (AEO). As AI chatbots like ChatGPT become many people's first information source, marketers are scrambling to adapt.
Traditional SEO focused on ranking for specific keywords in Google. AEO is about influencing how AI chatbots respond to conversational questions. Instead of optimizing for "project management software," you need content that answers dozens of variations like "Which tool works best for remote teams?"
The AI playing field is still forming, and companies that understand how to create content for these systems might outperform established players without needing massive SEO budgets.
Africa's AI Skills Gap Is Widening
SAP just released a new report called 'Africa's AI Skills Readiness Revealed' with some sobering findings. African companies see AI skills as increasingly critical, with 60% calling them "extremely important" to success.
When it comes to specific AI skills, 85% of organizations are prioritizing AI development skills, while 83% are focused on acquiring Generative AI capabilities. Cybersecurity remains the most sought-after tech skill overall, with 86% of companies highlighting its importance.
The workplace dynamics have shifted dramatically too. In 2023, just 32% of organizations cited supporting remote work requests as a challenge. Now, 80% say accommodating skilled employees' desires for hybrid or remote work is their top skills-related challenge. This represents a fundamental change in the employer-employee power dynamic, likely driven by the scarcity of AI talent.
There's also been a notable shift in hiring priorities. In the previous survey, technical skills and industry-specific expertise topped the list of desired attributes. Now, affordability has become the number one candidate attribute that African organizations consider, with adaptability running a close second. This suggests economic pressures are forcing difficult compromises in talent acquisition.
The drop in budget allocation for skills development requires an urgent rethink. Organizations that don't invest in appropriate skills now may find they are unable to leverage new innovations and emerging technologies, leaving them trailing their more skills-enable competitors - As Nazia Pillay, Interim Managing Director for South Africa at SAP
94% of African organizations now offer training and skills development to employees at least monthly (up from 74% previously), the portion of IT and HR budgets allocated to skills development has actually declined since 2023. Companies appear to be trying to address the skills gap without increasing investment - a risky strategy when AI expertise commands such a premium in the market.
Kenya's Bold Move: East Africa's First AI-Ready Data Centre
Safaricom and iXAfrica have partnered to launch East Africa's first AI-ready data centre. The heart of this project is iXAfrica's NBO1 campus in Nairobi - a 22.5MW facility specially designed for AI's intensive requirements. There will be advanced cooling systems, robust power infrastructure, and placement along strategic fiber routes, all powered by low-carbon energy.
This addresses a fundamental challenge for African organizations working with AI. Until now, most had to rely on overseas infrastructure, leading to higher costs, latency issues, and compliance headaches. This data centre could keep AI workloads closer to home, potentially speeding up development cycles and improving data sovereignty.
That said, it's no silver bullet. Access, affordability, and AI literacy still pose significant hurdles, especially for smaller companies. The key question is whether this will truly democratize AI development or primarily serve large enterprises with deep pockets.
The timing is interesting as regional competition intensifies. Cassava Technologies is already building an "AI factory" with NVIDIA in South Africa, with plans to expand into Kenya. For Safaricom, this moves them further along their path from telco to tech player, while positioning Kenya for a larger role in Africa's digital economy.
If I were a student today…
Nvidia CEO on how he would use AI to “do my job better—it ‘doesn’t matter’ the profession.
Learning how to interact with AI is not unlike being someone who’s really good at asking questions,” he added. “Prompting AI is very similar. You can’t just randomly ask a bunch of questions. Asking AI to be an assistant to you requires some expertise and artistry of how to prompt it.
Jobs at Low AI Risk
And if you’re just not having any of all this AI stuff and wahala, here’s a list of jobs from USA today on what jobs exist with low AI risk.
According to Resume Now, these careers offer a good income and strong job security because they require skills that go well beyond the capabilities of AI.
Forest fire inspectors and prevention specialists
Flight attendants
Lodging managers
Electricians
Plumbers, pipe-fitters and steamfitters
Industrial machinery mechanics
Chefs and head cooks
Personal service managers
Over at The Rundown Studio, we know our jobs are at risk as communications specialists so we are creating this resource and beefing up our own knowledge so we are prepared !
Middle East's AI Power Play
Saudi Arabia and the UAE are making dramatic moves in AI infrastructure.
The US and UAE have announced a partnership to build a massive data center complex in Abu Dhabi with 5-gigawatts of capacity, enough for a major city. This will be the largest data center outside the US, eventually spanning 10 square miles.
While no companies were officially named, according to Yahoo Finance, Nvidia CEO Jensen Huang was spotted at Trump's UAE meetings (draw your own conclusions). The project aims to extend American AI companies' reach in the Middle East, and then also better serving the global south.
For the UAE, this perfectly aligns with their goal to become an AI leader by 2031. They're focused on diversifying beyond oil, viewing these investments as critical to their post-petroleum future.
Meanwhile, Saudi Arabia's Crown Prince Mohammed bin Salman has launched HUMAIN, a new AI technology company under the Public Investment Fund. It will provide a range of AI services including data centers, infrastructure, and advanced AI models. The Saudis are positioning themselves as a global AI center outside the US and backing it with serious investment. Salesforce recently committed $500 million to AI initiatives in the kingdom.
These developments show how Gulf states are aggressively pursuing AI for economic diversification. For African nations building their own AI capabilities, these regional investments create both competition and potential partnership opportunities as the AI landscape evolves.