Action must be taken to keep South Africa competitive as the corporate landscape shifts
The future is no longer a distant horizon; it is now, and its engine is artificial intelligence (AI). Globally, AI has transformed from science fiction into the heartbeat of the world economy, revolutionising industries from banking and media to mining and public services, driving unparalleled efficiencies, unlocking innovation and creating new opportunities.
Yet, corporate South Africa may be sleepwalking into an existential crisis, profoundly unprepared for the seismic shifts already reshaping the corporate landscape.
The statistics paint a stark, undeniable picture of our dangerous complacency. While a staggering 77% of companies worldwide are either actively using or exploring AI, less than 30% of businesses in South Africa even possess a formal AI strategy. This is not merely a lag; it is a profound strategic deficit that threatens our economic future.
The PwC global AI study estimates that AI could contribute an astonishing R264 trillion to the global economy by 2030. Yet, without urgent and drastic changes, Africa as a continent is poised to capture less than 2% of this potential. This is an impending catastrophe of economic exclusion and lost competitiveness.
Potential needs to be understood
This complacency, where executives view AI as a futuristic concept rather than an urgent priority, is catastrophic. The largest taxi company doesn’t own cars and the biggest accommodation provider owns no real estate. What happens when the largest insurance company operates without brokers because AI performs the job more effectively? The uncomfortable truth is that most corporate leaders in South Africa don’t truly understand AI, let alone know how to leverage it effectively.
While AI demand for skills has shown a relative strength in South Africa, with job postings requiring AI-related skills steadily increasing from 2021–2024 and peaking at 17,000 jobs in 2024, particularly in the education and ICT sectors, this organic growth is not enough without a strategic national effort.
AI is far more than mere automation or data analytics; it is about predictive insights, adaptive learning and fundamentally reshaping entire business models.
The AI-driven future presents a paradox: it will displace jobs, but it will also create new ones. The World Economic Forum estimates that, by 2025, AI will displace 85 million jobs globally, while simultaneously creating 170 million new roles, primarily in tech-driven industries. South Africa, already grappling with alarmingly high unemployment rates, cannot afford to ignore this transition. Roles such as administrative and clerical positions, basic retail and customer service jobs and repetitive manufacturing tasks are highly susceptible to automation.
Conversely, the demand for AI specialists, machine learning engineers, data scientists, robotics technicians, cyber-security analysts and AI ethics and compliance officers is rapidly emerging.
Our current education systems and corporate training programmes are failing to evolve quickly enough to bridge this critical skills gap. Businesses are already struggling to fill AI-related positions, resorting to outsourcing or paying premiums for foreign talent, which is unsustainable.
Action stations!
Corporate South Africa, supported by government and academia, needs to take action. AI adoption must start at the top. CEOs, CFOs and board members need intensive training to grasp what AI truly is and how it can fundamentally drive growth across all industries.
Every organisation, regardless of sector, needs a clear, actionable AI roadmap. This is not exclusive to tech companies: AI impacts finance, healthcare, agriculture and beyond.
Companies must lead the charge in upskilling their employees across all levels, not just data scientists. This means investing in comprehensive reskilling programmes, focusing on data science, machine learning and critical thinking.
Partnering with AI training providers for micro-credentials, mentorship programmes and hands-on projects is crucial. Furthermore, accessible AI education initiatives for the broader public are vital to empower communities.
School and university curricula require a fundamental redesign. Basic AI concepts, coding and data analysis should be introduced from high school, while universities and technical colleges must significantly expand and specialise their AI and machine learning course offerings.
Government and private sector funding must be directed towards establishing AI research hubs, offering scholarships and creating AI-focused boot camps to equip young professionals with in-demand skills.
As AI becomes more integrated, robust governance frameworks are essential to address algorithmic bias and data privacy issues, ensuring responsible AI use.
Waiting for competitors to adopt AI first is a death sentence. Businesses must be willing to fundamentally disrupt their own models to stay ahead. The window of opportunity is rapidly closing for those who haven’t even begun their AI transformation journey.
South Africa has a strong precedent for successful skills development initiatives in fields like engineering and accounting. AI needs to be a similar national priority. A well-executed AI skills strategy can position South Africa not just as a participant, but as a leader on the African continent, attracting investment, fostering innovation and ensuring that AI serves as a powerful tool for economic empowerment rather than a force of disruption.
Text | Rowen Pillai
Photography | Chayanuphol
Rowen Pillai is CEO of LeanTechnovations.
For more information, go to leantechnovations.com.
