South African enterprises are rapidly adopting Generative AI but without formal strategies, study finds
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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 is the key finding of the South African Generative AI Roadmap 2025, based on a study by World Wide Worx in collaboration with Dell Technologies and Intel. Arthur Goldstuck, the CEO of World Wide Worx and principal analyst of the study, released the report on Thursday.
The report, which surveys over 100 mid-sized and large enterprises across industry sectors, shows that GenAI adoption has climbed from 45% of large enterprises in 2024 to 67% in 2025.
This dramatic rise positions GenAI as the fastest-moving digital trend in the country. However, in a rush to adopt the fast-growing technology, there is a need for organisations to take the foundational steps of planning and governance. Doing so will more clearly connect AI to people and processes and help organisations reap genuine, sustaining return on investment.
'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.'
According to the report's findings, AI adoption has brought clear benefits to the organisations using it:
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86% of GenAI users cite increased competitiveness as a result of using AI tools.
83% report improved productivity.
66%
see enhanced customer service.
Yet, behind these numbers lies an operational gap: Only 14% of organisations have a formal company-wide GenAI strategy.
Just 13% have implemented governance or ethical frameworks in the form of guardrails for safety, privacy and bias mitigation.
39%
cite high implementation cost as the primary barrier to GenAI adoption.
AI maturity requires foundations
'The roadmap aims to help guide stakeholders to fully understand the scope of GenAI, and to build transparent strategies that deliver on its promise without placing enterprises at risk,' says Goldstuck. 'What's most startling is that many companies think using a GenAI tool is the same as having an AI strategy.'
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. Holistic AI infrastructure, combined with people and processes, is critical to scaling AI deployments and clearly connecting them to tangible return on investment.
Shadow AI
The report raises the alarm about 'shadow AI' – the unsanctioned use of GenAI by employees without oversight. Currently: 32% of businesses report informal or unregulated GenAI use.
of businesses report informal or unregulated GenAI use. A further 20% report a mix of official and unofficial GenAI use.
further report a mix 84% say oversight is an important or very important success factor for GenAI deployment.
Critical governance measures include clear principles for oversight, accountability, and responsible use. It enables organisations to build trust, reduce risk, and drive long-term value.
'The current use of GenAI is largely taking place in a regulatory and ethical vacuum,' Goldstuck warns. 'The longer this continues, the more harm can be caused, to both businesses and individuals, before these guardrails are in place.
'Without governance, organisations are walking blindfolded into a future shaped by AI. That might be exciting, but it is not sustainable.'
The roadmap also identifies two areas of opportunity:
Business and Societal impact : Over 75% of respondents have no measures in place to monitor or reduce the energy use and footprint of GenAI.
Skills development
: A massive 87% of businesses have committed to GenAI upskilling or training of employees.
The report cautions that South Africa could find itself divided by the ability to use GenAI wisely and scale deployments as the technology matures.
Goldstuck said, '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.'
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