Lagos’ Computer Village
Photo credit: GodMyHelper

Artificial intelligence is doing more than automating tasks; it is fundamentally changing how entrepreneurs think, making them more adaptable and strategic in volatile environments.

New research led by the University of East London suggests that exposure to digital tools and AI is linked to sharper judgment and greater mental flexibility, enabling business owners to rethink plans more effectively and adapt to shocks.

“What we’re seeing is not AI replacing human thinking, but changing how people think,” says lead author Dr Jamiu Odugbesan. “Entrepreneurs who work closely with AI start to plan differently. They become more comfortable revising assumptions, weighing more options, and adapting when circumstances shift.”

The Lagos laboratory

The findings come from a study of 376 entrepreneurs working in Lagos’ Computer Village, one of West Africa’s largest technology marketplaces.

Home to thousands of traders and developers, the market serves as a “powerful real-world setting” where business owners operate under intense pressure with limited protection against disruption.

The researchers found that in this volatile environment, entrepreneurs with higher levels of AI knowledge and digital exposure consistently showed greater flexibility in handling unexpected changes.

Cognitive shift

The study, which included researchers from the University of Benin and the LAPO Institute in Nigeria, highlights that the benefits of AI go beyond simple productivity.

When used as part of strategic reasoning rather than just a background tool, AI appears to broaden how people approach problems, helping them move from reactive decision-making to more deliberate, forward-looking strategies.

“In uncertain environments, success often depends less on having the perfect plan and more on being able to rethink it in the face of disruption,” says Dr Odugbesan.

The authors argue that governments and educators should rethink AI training to focus not just on technical skills, but on the cognitive benefits that lead to swifter, more confident decision-making.

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