South Africa’s AI Readiness: Only 18% of Organisations Fully Prepared for the Future, Says Cisco

As artificial intelligence (AI) continues to revolutionize industries globally, South African organisations are racing to adapt. However, Cisco’s newly released 2024 AI Readiness Index highlights a stark reality: only 18% of South African businesses are fully prepared to harness AI’s transformative potential.

The Index, which surveyed nearly 8,000 senior business leaders across 30 markets, paints a sobering picture for South Africa. Despite a 99% increase in AI investment over the past year, significant challenges remain. Key barriers such as infrastructure gaps, talent shortages, and governance weaknesses are hindering AI adoption.

According to Smangele Nkosi, General Manager at Cisco South Africa, “AI is reshaping the future of business on a global scale, and South African businesses must adapt to keep pace with the global market.”

AI offers unparalleled opportunities, from advanced capabilities to enhanced cybersecurity, but it also presents new risks. Without a solid foundation in infrastructure, strategy, and culture, local businesses risk falling behind.

The Numbers Behind the Readiness Gap

• Only 20% of organisations have sufficient GPUs for current and future AI demands.
• Nearly half (48%) lack comprehensive security measures for AI models, including end-to-end encryption.
• Over 50% of businesses allocate 10–30% of their IT budgets to AI, with this number expected to rise significantly in the next five years.

Infrastructure, in particular, is a pressing issue. Cisco’s report highlights that gaps in compute power, data center network performance, and cybersecurity have worsened over the past year.

Interestingly, the push for AI adoption is coming from the top. More than 57% of CEOs and leadership teams are driving AI initiatives, with boards of directors and investors following suit.

Looking ahead, 50% of organisations plan to allocate over 40% of their IT budgets to AI within the next four to five years—a significant leap from the current figures.

To fully leverage AI, South African organisations must address key challenges:

1. Invest in Scalable Infrastructure: Bridge the gaps in compute power and cybersecurity.
2. Develop AI Talent: Upskill employees to meet the growing demand for AI expertise.
3. Foster a Culture of Innovation: Encourage cross-departmental collaboration to drive AI initiatives.

As Cisco emphasizes, AI adoption is no longer a question of “if” but “how effectively.” With targeted investments and strategies, South African businesses can turn ambition into measurable outcomes.

Explore Cisco’s AI Readiness Assessment Tool to evaluate your organisation’s preparedness and take the first step toward an AI-driven future.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com