Businesses embrace GenAI in SA, but strategy and skills are lagging – report

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.”

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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.

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