Businesses embrace GenAI in SA – but strategy, skills lagging
According to the findings, South African enterprises are rapidly integrating Generative AI (GenAI) into their operations. Picture: iStock
A new report has revealed that the informal and unregulated usage of generative artificial intelligence (GenAI) by businesses in South Africa poses a threat to both them and their employees.
The report, produced by World Wide Worx and Dell Technologies, surveyed over 100 medium and large-sized enterprises nationwide.
Gen AI
According to the findings released on Thursday, South African enterprises are rapidly integrating Generative AI (GenAI) into their operations, but most are doing so without formal strategies, dedicated leadership, or the infrastructure required to maximise value and minimise risk.
This dramatic rise positions GenAI as the fastest-moving digital trend in the country.
World Wide Worx CEO and principal analyst of the study, Arthur Goldstuck, said that in a rush to adopt the fast-growing technology, there is a need for organisations to take the foundational steps of planning and governance.
'Many organisations are simply unaware of the gaps they're leaving in their systems, said Goldstuck. 'The risk goes beyond the technical, and includes reputational, ethical, and operational vulnerability. While the first step of technology adoption is well underway, our survey demonstrates there is room for operational growth.'
ALSO READ: WATCH: 'Gen AI solves problems that were too expensive to solve' – Cyborg Anthropologist
Findings
According to the report's findings, AI adoption has brought clear benefits to the organisations using it, with 86% of GenAI users citing increased competitiveness as a result of using AI tools.
The report also showed that 83% reported improved productivity, while 66% saw enhanced customer service.
On the other hand, the report raised the alarm over 'shadow AI' – the unsanctioned use of GenAI by employees without oversight.
It showed that 32% of businesses correctly report informal or unregulated GenAI use, while a further 20% report a mix of official and unofficial GenAI use.
84% say oversight is an important or very important factor in the success of GenAI deployment.
Caution
The report cautioned that South Africa could find itself divided by the ability to use GenAI wisely and scale deployments as the technology matures.
'There's a real risk of a GenAI disconnect in South Africa between those who use GenAI deliberately, strategically and ethically, and those who use it blindly or not at all,' Goldstuck said.
Goldstuck said as companies race to embed GenAI tools like Microsoft Copilot and ChatGPT into business functions, most are overlooking deeper transformation through infrastructure, skills and internal capability.
He said holistic AI infrastructure, combined with people and processes, is critical to scaling AI deployments and clearly connecting them to tangible return on investment.
ALSO READ: Organisations encouraged to empower employees with AI fluency
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
2 minutes ago
- IOL News
Economist cautions against interest rate hikes amid economic uncertainty
South African Reserve Bank (SARB) governor Lesetja Kganyago has strongly advocated for the country to lower its inflation target from 4.5% to 3%. Image: Thobile Mathonsi / Independent Newspapers South African Reserve Bank (SARB) governor Lesetja Kganyago has strongly advocated for the country to lower its inflation target from 4.5% to 3%. Experts argue that a lower inflation target would improve price stability, reduce borrowing costs and enhance investor confidence in the long term. However, many feel it would entail some short term 'pain' for the sake of long-term gain. Yet tightening monetary policy could be a dangerous move in the current economic climate, warns Frederick Mitchell, chief economist at Aluma Capital. The US says it intends to impose a 30% tariff on South African goods, with threats of a further 10% tariff targeting BRICS countries. This could plunge many industries into crisis. Industries that rely on exports, such as vehicles, citrus and mineral commodities, are particularly vulnerable. These sectors are already under stress and additional tariffs could hinder economic growth and exacerbate the country's already high unemployment rate of over 30%. Within this context, the SARB faces a constrained path, Mitchell said. 'Conventional wisdom suggests that raising interest rates can curb inflation, yet in the current environment, where inflation remains subdued but economic growth is threatened, tightening monetary policy may exact an economic toll without addressing the underlying trade issues,' Mitchell explained. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ As SARB Governor Lesetja Kganyago has noted, inflation is expected to remain within the target range, but global trade war uncertainties loom large. Higher tariffs and potential retaliatory measures could put a damper on South Africa's economic recovery. 'Increasing interest rates in such a fragile environment risks stifling growth further, especially as global economic slowdown cues stemming from China's potential slowdown and trade tensions compound the problem,' he added. 'Given that South Africa's economy is highly reliant on exports and sensitive to external shocks, the restrictive monetary stance could deepen recessionary pressures without equipping the economy to withstand the imminent trade disruptions.' Although the government's fiscal space remains limited, an over-reliance on monetary policy to counteract trade barriers would neither be prudent nor effective. Mitchell believes the focus should remain on defending economic stability through fiscal prudence and resistance to over-tightening monetary policy in relation to inflation. Furthermore, policymakers should prioritise diplomatic engagement and trade negotiations. 'While efforts to curb inflation are vital, the scope for interest rate hikes in response to global trade tensions and tariffs is limited. Such measures risk further slowing economic growth, increasing unemployment, and undermining investor confidence,' Mitchell said. 'A prudent approach would involve safeguarding industry competitiveness and fostering diplomatic solutions, recognising that the health of South Africa's economy hinges on resilient trade relations and sound fiscal management rather than aggressive rate hikes amid uncertain international conditions.' Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
The South African
2 minutes ago
- The South African
Here's why your next beef burger may cost a lot MORE
Meat prices – particularly beef – were a primary driver behind South Africa's uptick in consumer inflation in June, with food inflation hitting a 15-month high of 5.1%, Stats SA reports. After remaining steady at 2.8% in April and May, the annual consumer price index (CPI) climbed to 3.0% in June, largely due to persistent increases in meat costs. Stewing beef saw a 21.2% year-on-year increase – the highest on record since the current CPI series began in 2017. saw a – the since the current CPI series began in 2017. Mince and steak also posted high monthly and annual price increases, continuing a three-month upward trend. The spike in beef prices is attributed to ongoing supply pressures, including feed costs and limited local production recovery after prior drought conditions. While beef led the surge, prices for other unprocessed meats also rose notably, contributing significantly to the overall food basket inflation. These rising meat costs have disproportionately impacted low-income households, where meat makes up a larger share of food spending. With meat being a staple in South African diets, the sustained increase could continue to exert pressure on household budgets, even as other food categories such as dairy and cereals show some relief. Consumers may start substituting more expensive cuts or switching protein sources if the trend continues in the months ahead. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
IOL News
32 minutes ago
- IOL News
G20 South Africa 2025: a defining moment for the nation and the continent
Image: Supplied South Africa is preparing to welcome the world in 2025 as it assumes the presidency and hosts the G20 Summit in Johannesburg, a moment of national pride and continental significance. This milestone places South Africa, and by extension Africa, at the centre of global dialogue on economic growth, sustainable development, climate resilience, digital transformation, and multilateral cooperation. In the words of South African Deputy President Paul Mashatile, South Africa's goal is to promote mutually beneficial economic growth, create jobs and advance sustainable development for its partner nations. The Group of Twenty, commonly known as the G20, is the world's premier forum for economic cooperation. Representing more than 85% of global GDP, over 75% of world trade, and two-thirds of the planet's population, the G20 convenes the most powerful economies to address pressing global challenges. As the only African founding member of the G20, South Africa's presidency could not be more timely or symbolic. At a time when the world is redefining recovery and resilience in the wake of geopolitical tensions, economic uncertainty, and climate disasters, South Africa brings a grounded, inclusive voice to the table, one that reflects the aspirations of the Global South and the urgent developmental needs of the African continent. Image: Supplied The G20 countries' ability to respond collectively to mounting challenges facing the multilateral system will determine both the speed of global recovery and the future of sustainable development. Under the banner of 'inclusive growth for a just world,' South Africa's leadership is expected to spotlight issues such as financing for sustainable infrastructure, the global energy transition, youth employment, food security, digital inclusion, and equitable access to global markets. These are not only global concerns, but they are also everyday realities for millions across Africa. The Summit will attract heads of state, finance ministers, central bank governors, and global institutions like the UN, World Bank, and International Monetary Fund. Beyond political leadership, the G20 also engages civil society, youth, women, labour, business, and think tanks through structured engagement groups—offering platforms for a wider range of voices to shape global policy. Johannesburg, as host city, will become a strategic hub of diplomacy, business exchange, and cultural showcase. While the summit itself is a high-level, closed-door affair, South Africans can expect a wave of public engagement, community-driven programmes, investment conversations, and national pride as the event draws near. 'The G20 presidency is a powerful opportunity for South Africa to place Africa's priorities at the heart of global decision-making. We are committed to driving an inclusive agenda that ensures no country, and no person, is left behind.' said President Cyril Ramaphosa. Image: Supplied For the South African government, this is more than ceremonial. It is an opportunity for G20 members to transform commitments into lasting action. Key issues remain a challenge in the country and the continent, and there is a call for greater accountability to drive tangible progress in the global pursuit of gender equality SA's G20 presidency is also an opportunity to elevate African perspectives, strengthen international alliances, and advance sustainable development goals. It is a chance to reinforce South Africa's commitment to multilateralism and global cooperation at a time when unity is more important than ever. As preparations intensify in the coming months, all eyes will be on South Africa not just as a host, but as a bridge between developed and developing economies. The 2025 G20 Summit is more than just a gathering of nations. It is a moment for South Africa to lead with purpose, to shape global consensus, and to drive transformation that begins on the continent but resonates across the globe. Stay updated by visiting or follow #G20SouthAfrica2025 for news, opportunities, and ways to engage.
