Not long ago, Artificial Intelligence (AI) was something out of a science fiction movie. Today, it’s part of everyday boardroom conversations in Lagos, Abuja and Port Harcourt. From banks battling fraud to retailers trying to understand shifting consumer habits, AI is no longer about the future; it is about survival and growth right now.
But here’s the problem: many executives nod when “machine learning” or “generative AI” are mentioned, without fully grasping what these terms mean. And without clarity, it’s hard to make the right calls.
So, let’s break down some of the key AI terms in plain language and show why they matter to Nigerian business leaders.
Artificial Intelligence (AI)
‘AI’ refers to machines that perform tasks typically requiring human intelligence. Think of it as getting a computer to “think”, spotting patterns, solving problems, or even holding a conversation. In Nigeria, AI is already powering customer service chatbots at banks, fraud detection in fintech, and optimising routes for delivery companies.
Machine Learning (ML)
This is when systems learn from data instead of relying only on coded instructions. Imagine a microfinance institution that uses ML to predict loan defaults by analysing thousands of past repayment histories. The system becomes smarter as it processes more data. The best-trained credit officer cannot match its processing ability.
Deep Learning
Deep learning mimics the human brain using “neural networks” that process large amounts of data. Deep learning networks have multiple layers, which allows them to find more patterns in data. This is the technology behind facial recognition at airports and medical imaging, which helps doctors detect early signs of disease. It’s heavy-duty AI, and it’s already being used within the Nigerian security and healthcare systems.
Natural Language Processing (NLP)
This is what helps computers understand human language. Think chatbots, transcription services, or translation tools. NLP focuses on enabling computers to understand, interpret, and generate human language in both written and spoken forms.
Imagine a customer care bot that can switch seamlessly between English, Hausa, Pidgin, Yoruba, and other Nigerian languages.
“The real winners in Nigeria’s AI future will be the organisations where boards and management teams understand what’s possible, what’s risky, and what’s worth investing in.”
Generative AI
From drafting text to designing images and even composing music, generative AI powers tools like ChatGPT, Gemini, Meta AI, and others. What makes it exciting is how it has democratised access to AI, putting powerful tools in everyone’s hands. Today, entrepreneurs, executives and creatives alike can use it to brainstorm business ideas, sketch product concepts, generate visuals, summarise documents, and much more.
Algorithms
An algorithm is simply a set of instructions for solving a problem. On Amazon, when you’re shown “you may also like” product suggestions, that’s an algorithm, just intelligent, coded instructions powering business decisions.
Training data
AI is only as good as the data it learns from. If a chatbot has only been trained on American English, it might struggle with the Nigerian context. That’s why local data is so important. A Lagos-based business needs AI trained with Nigerian business terms, not just generic global data.
Bias in AI
Bias occurs when AI systems make decisions that are unfair or discriminatory. Imagine an AI hiring tool that consistently screens out graduates from certain Nigerian universities because the training data undervalues them. This is a serious governance issue, and it’s why executives must pay attention to how AI is trained and deployed.
AI governance
This is about rules, policies and oversight, ensuring AI is used responsibly. With the National Data Protection Commission (NDPC) enforcing stricter standards, AI governance isn’t just good practice; it is also a vital risk management tool.
Automation vs. augmentation
One common worry is, will AI replace jobs? The truth is, AI is more about augmentation than outright replacement. It takes over repetitive tasks (automation) but also empowers humans to do their jobs better (augmentation). For example, AI can handle routine customer queries, freeing call centre staff to focus on complex cases that require empathy.
Bottom line
AI is no longer just for tech companies. Banks that fail to use AI for fraud detection will lose money. Retailers that don’t personalise shopping experiences risk losing customers to smarter, AI-savvy competitors. Oil companies that overlook AI-driven predictive maintenance will face increased downtime and higher costs.
Being fluent in AI terms is about making informed, strategic decisions. Executives must invest in AI capacity development and training, not just for IT teams, but across leadership and staff. The real winners in Nigeria’s AI future will be the organisations where boards and management teams understand what’s possible, what’s risky, and what’s worth investing in.
AI is here. The question is, will you and your business lead the change or be left behind?
Dotun Adeoye is a seasoned technology strategist and AI innovation leader with over 30 years of global experience across Europe, North America, Asia, and Africa. He is the co-founder of AI in Nigeria.
