SAP report exposes urgent AI skills gap
Cybersecurity, AI development, and affordability top the list of hiring priorities, but challenges remain in retaining skilled talent.
At SAP South Africa’s offices in Woodmead, on May 15, the tech giant launched its latest research report: Africa’s AI Skills Readiness Revealed.
The findings highlight the growing urgency among South African businesses to address a widening AI skills gap, which is already impacting innovation, growth, and operational efficiency.
The research, conducted in late 2024 among mid-sized and enterprise-level organisations in South Africa, Kenya, and Nigeria, paints a clear picture: AI is reshaping the business landscape, and South African companies are feeling the pressure to keep up.
Also read: Sandton entrepreneur launches a groundbreaking tech platform
According to the report, nearly 60% of companies across the continent consider AI skills extremely important to their success in 2025. However, 90% of organisations are already experiencing negative business outcomes due to a lack of AI talent, from delayed projects and stalled innovation, to missed growth opportunities.
Nazia Pillay, interim managing director for SAP South Africa, addressing the guests, emphasised that the demand for AI skills is not just growing, it’s urgent. “African companies expect the demand for AI skills to increase this year. The business impact of a lack of AI skills is already evident.”
Pillay continued to explain that the report reveals that, while 94% of African companies now offer training, at least monthly, up from 74%, there has been a decline in the portion of IT or HR budgets allocated to skills-related initiatives.
Also read: Sandton’s own to talk about cybersecurity and internet governance in a TED Talk
“Cybersecurity has emerged as the most in-demand skill, with 86% of organisations highlighting its importance. Generative AI and AI development skills also top the list, yet many companies face challenges retaining skilled employees, who now expect flexible work arrangements.”
Pillay concluded by stating that, interestingly, affordability has become the most valued trait in new hires, surpassing technical skills.
As a Sandton journalist, sitting down and listening to these findings raises pressing questions: How prepared are Sandton-based firms to respond to the AI skills crisis? Are local businesses investing enough in upskilling and reskilling efforts?
Follow us on our Whatsapp channel, Facebook, X, Instagram, and TikTok for the latest updates and inspiration! Have a story idea? We’d love to hear from you – join our WhatsApp group and share your thoughts!
