FUTURE TECHNOLOGY
service queries to tailoring real-time marketing campaigns , AI agents will enable businesses to push boundaries .
At Dell , we are experimenting with agents to help teams sort through content , code artifacts and other
Stark reality of AI readiness in South Africa
Smangele Nkosi , General Manager , Cisco South Africa
Cisco announced findings from the Cisco 2024 AI Readiness Index . The index reveals that only 18 % of organisations in South Africa are fully prepared to deploy and leverage AI-powered technologies . This underscores the challenges companies face in adopting , deploying , and fully leveraging AI .
AI is reshaping the future of business on a global scale , and South African business must adapt to keep pace with the global market . Businesses must address gaps in infrastructure , skills , and governance to protect their assets and fully harness AI ’ s transformative power .
In South Africa , all , 99 % report an increased urgency to deploy AI in the past year , primarily driven by the CEO and leadership team . Additionally , companies are committing significant resources to AI , with over 50 % indicating that between 10 % to 30 % of their IT budget is allocated to AI deployments .
Despite significant AI investments in strategic areas like cybersecurity , IT infrastructure , and data analytics and management , many companies report that returns on these investments are not meeting their expectations .
The largest decline was in infrastructure readiness , with gaps in compute , data centre network performance , and cybersecurity , amongst other areas . Only 20 % of organisations have the necessary GPUs to meet current and future AI demands and nearly half , 48 % have the capabilities to protect data in AI models with end – to – end encryption , security audits , continuous monitoring , and instant threat response .
Over the past year , AI has been a priority spend for organisations in South Africa , with 54 % allocating 10 – 30 % of their IT budgets to AI projects . Over 45 % of respondents report that the gains from their AI investments have not met expectations in augmenting , assisting , or automating current processes and operations
Despite unique challenges , a common theme across the board is the lack of skilled talent . Companies highlighted this as the top challenge across infrastructure , data , and governance , underscoring the critical need for skilled professionals to drive AI initiatives .
As the clock ticks , businesses in the region are accelerating efforts and increasing investments to overcome barriers and embrace AI-driven transformation . Notably , half , 50 % of organisations plan to allocate more than 40 % of their IT budget to AI investments in the next four to five years , a significant increase from 10 % of companies who said they are allocating a similar portion of their IT budget to AI currently .
2025 to-dos for South African technology champions
For South African businesses , staying ahead means focusing on four key priorities :
Commit to AI
Develop a comprehensive AI strategy . Test new applications , learn from initial challenges , and scale successful solutions quickly .
Upgrade your tech stack
From AI-powered PCs to modernised data
centres , ensure your infrastructure aligns with your ambitions .
Lead on sustainability
Adopt energy-efficient technologies to position your brand as an environmentally responsible leader .
Enable your teams
Empower employees with tools like AI agents that free them from repetitive tasks and unlock their strategic potential .
The businesses that thrive in 2025 will be those that approach these changes with clarity , agility and purpose .
knowledge bases , and by sharing our early adoption key learnings with our customers . Gartner forecasts that by 2028 , one-third of generative AI interactions will be handled by these agents .
For individuals , it marks a shift in how we interact with technology . Instead of managing people alone , professionals across industries will increasingly manage AI agents . It is a move toward more dynamic , personalised , and creative work environments . p
44 INTELLIGENTCIO AFRICA www . intelligentcio . com