African financial firms urged to balance AI innovation with cyber resilience

Financial institutions across Africa have been urged to adopt artificial intelligence (AI) strategically and focus on measurable business value rather than succumbing to growing pressure surrounding the technology.

Speaking during the opening of BFSI Week 2026 in Nairobi on Wednesday, industry leaders said AI has the potential to transform Africa's financial services sector, but warned that its success will depend on strong leadership, cyber resilience and responsible implementation.

The two-day conference, which has brought together more than 300 executives and decision-makers from banking, SACCOs, insurance, fintech and technology firms, is examining the role of emerging technologies in accelerating Africa's financial transformation.

Harry Hare, Chairman of CIO Africa by dx5, cautioned organisations against adopting AI simply because it has become the latest technology trend.

"Technology is not there for technology's sake. Technology is there to help us solve very specific problems, improve efficiency and create value for customers," said Hare.

He noted that businesses are increasingly facing pressure from boards, customers, competitors and technology vendors to embrace AI, but stressed that organisations must first establish the value they intend to create.

"Your board is asking what you are doing about AI. Your customers are asking how you are using AI. Your competitors are adopting AI, and vendors are constantly offering AI solutions," he said.

Hare acknowledged the transformative potential of AI but urged organisations to remain focused on practical outcomes.

"Let's ride the hype, but let's reason reality into what we're doing in technology so that we don't lose sight of what technology is supposed to do," he added.

At the same time, experts warned that the rapid adoption of AI is creating new cybersecurity risks for businesses.

Dennis Muriithi, Senior Solutions Engineer at Sophos, said cybercriminals are increasingly leveraging AI to launch more sophisticated attacks at unprecedented speed and scale.

"With new technology come new risks, and one of the most constant risks has always been cybersecurity," he said.

According to Muriithi, phishing attacks have surged significantly during the generative AI era, while AI-powered cyber threats continue to rise globally.

"The number is not going to go down. Whatever we're experiencing today will get worse," he warned.

He explained that AI is now being deployed throughout the cyberattack lifecycle, from reconnaissance and credential theft to ransomware deployment, reducing the time organisations have to detect and respond to threats.

"In the AI era, we are moving from minutes to seconds of impact," he said.

Muriithi called on financial institutions to strengthen preparedness by developing clear incident response frameworks and ensuring leadership teams understand their responsibilities during cyber crises.

"The question is, what is your escalation chain? Do you have a plan?" he posed.

Despite the risks, speakers noted that AI also presents significant economic opportunities for Africa.

Sarah Muriuki, Group Head of Enabler Systems Support at Equity Bank Kenya, said the continent is increasingly positioning itself as a global hub for AI-enabled service delivery.

"Africa is not only a market for AI, we are becoming a delivery engine," she said.

Muriuki pointed to the continent's growing business process outsourcing and shared services industry, arguing that African firms should move beyond competing solely on labour cost advantages and focus on delivering higher-value services powered by AI.

"Are we going to just stay as an arbitrage back office, or do we level up and start bringing value to the market through AI-augmented services?" she asked.

She argued that unlocking the full benefits of AI will require bold leadership and strategic decision-making rather than technology investments alone.

"That is not a technology question. It is a leadership question," she said.

The discussions highlighted the balancing act facing financial institutions across Africa as they seek to harness AI to improve efficiency, customer experience and competitiveness while managing growing cybersecurity and governance challenges.

Delegates attending BFSI Week are expected to continue exploring how digital innovation and emerging technologies can strengthen operational resilience, expand financial inclusion and drive the next phase of growth in Africa's financial sector.