Nigeria Leads in Responsible AI Adoption as Zoho Sees 75% Customer Growth

By Dipo Olowookere

Nigerian businesses in Nigeria are beginning to embrace Artificial Intelligence (AI), using the technology to execute some of their operations, a study by Zoho has revealed.

On the sidelines of its 2025 annual user conference in Lagos on Monday, the global technology platform said from its survey, it observed that 93 per cent of Nigerian organisations have already begun their AI journey, with 31 per cent achieving advanced AI integration across the organisation, and 26.5 per cent implementing AI across multiple departments.

“We continue to invest in Nigeria as businesses here accelerate their adoption of technology to grow and scale. The latest study around AI and Privacy proves that Nigerian businesses are leading the way in responsible AI adoption, as they temper the new technology with privacy measures.

“This mirrors Zoho’s philosophy of building contextual and privacy-first AI models that can help businesses realise tangible benefits.

“We infuse our AI solutions—from conversational and prescriptive to agentic and generative—with business context so that it can provide organisations with decision intelligence,” the Country Head for Zoho Nigeria, Mr Kehinde Ogundare, informed newsmen at the event.

In the study titled The AI Privacy Equation: The Nigerian Model of Responsible AI Adoption, it was found out that the massive adoption of AI in the country was driven by executive commitment at the highest levels.

Further, it was revealed that Nigerian businesses are not just adopting AI, they are embedding it responsibly, with 94 per cent now having a dedicated privacy officer or team, a figure well above global averages.

In fact, 40 per cent of the organisations allocate more than 30 per cent of their IT budgets specifically to privacy protection, reflecting the belief that strong governance is a competitive advantage rather than constraint.

Also, nearly 65 per cent of organisations say regulatory consciousness has increased since the introduction of Nigeria’s Data Protection Act. Companies are conducting regular privacy audits of AI systems (57 per cent), implementing data minimisation practices for AI training (57 per cent), and requiring explainability of AI decisions (52 per cent).

This proactive governance positions Nigerian businesses not only for domestic compliance but also for competitiveness in international markets.

Business Post reports the research was conducted by Arion Research for Zoho, with 386 respondents in Nigeria.

“The Nigerian model challenges the conventional wisdom that AI adoption requires privacy trade-offs. When 84 per cent of organisations strengthen their privacy measures through AI implementation rather than weakening them, it demonstrates that privacy-conscious design can actually enhance AI outcomes.

“Nigerian businesses are proving that robust governance isn’t a constraint on innovation, it’s a competitive advantage that builds customer trust and creates sustainable AI implementations,” the chief executive of Arion Research, Mr Michael Fauscette, said.

Meanwhile, Zoho has recorded a significant growth in Nigeria, with its customer base soaring by 75 per cent in 2024, helped with key products like Zoho Workplace (enterprise email and collaboration suite), Books (accounting software), Campaigns (all-in-one powerful Email and SMS marketing solution), and Zoho One (all-in-one suite that brings together over 55 business applications).

Key sectors contributing to this expansion are IT hardware and IT related services, financial services, energy, utilities and resources, manufacturing, non-IT professional services, real estate and construction, media and entertainment, education and retail.