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AI Boom in South Africa: Optimism Grows Despite Skills and Trust Challenges

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A recent study by Qlik, a global leader in data integration and analytics, reveals that South African businesses are highly optimistic about artificial intelligence (AI). However, despite widespread adoption, challenges such as skills shortages, resource constraints, and trust issues continue to hinder progress.

AI Adoption on the Rise

The study surveyed 4,200 C-suite executives and AI decision-makers globally, including South Africa. Findings show that 92% of South African organizations consider AI “essential” or “very important” for their success in the coming year. Additionally, 99% of local businesses are familiar with AI and its processes, with many actively leveraging the technology.

AI is already playing a role in key areas such as:

  • Knowledge sharing, training, and enablement (58%)
  • Generating insights from customer data (51%)
  • Cost-saving efficiencies (50%)
  • Optimizing operations (45%)
  • Predictive forecasting (40%)

Challenges Hindering AI Growth

While AI adoption is strong, scaling projects remains difficult. Companies report that an average of 17 AI projects per organization have been paused or canceled due to the following key issues:

  • Lack of skilled professionals (39%)
  • Trust concerns in AI technology (29%)
  • Insufficient resources (28%)
  • Budget constraints (21%)
  • Miscommunication on project objectives (21%)

A notable 76% of South African business leaders agree that industries must improve AI talent development. Additionally, 87% of businesses recognize the need for more AI education internally and for customers.

A Vision for AI Leadership

Despite these challenges, 75% of respondents believe South Africa has the potential to lead the world in AI skills within five years. However, achieving this vision will require a stronger focus on:

  • Government investment in AI training (83%)
  • Better regulation and governance
  • Increased funding for AI education and skill-building

Tejas Mehta, Senior Vice President and General Manager for the Middle East and Africa at Qlik, emphasizes that businesses must address talent shortages and resource limitations to fully unlock AI’s potential.

James Fisher, Qlik’s Chief Strategy Officer, advises that AI strategies should start with clear use cases, defined goals, and scalable resources to build trust and management buy-in.

South Africa’s AI revolution is well underway, but overcoming skills shortages and trust issues is crucial for long-term success. With stronger investment in AI education and governance, the country has the potential to emerge as a global AI leader.

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