A new report by SAP reveals that companies across Africa are scrambling to upskill employees in artificial intelligence as AI overtakes traditional IT in strategic value.

“There is a near-universal need for AI-related skills among African companies this year,” said Genevieve Koolen, HR director at SAP Africa. The Africa’s AI Skills Readiness Revealed report shows that nearly half of surveyed companies expect a “significant” increase in demand for AI skills in 2025.

While cloud and cybersecurity skills remain in demand, companies now face the dual challenge of retaining traditional tech talent while rapidly building AI expertise. Nearly 40% cite reskilling as a top challenge, and almost half say upskilling is also a major concern.

The stakes are high: SAP estimates AI could add $1.5 trillion to Africa’s economy by 2030 if the continent captures just 10% of the global AI market. Companies see the most value in improved decision-making (64%), marketing (51%), and innovation (47%).

However, a lack of AI talent is already taking a toll. The report links failed projects, delayed timelines, and lost client opportunities to the skills gap. Compounding the issue, training budgets have shrunk. No surveyed company currently spends more than 10% of its HR or IT budgets on skills development—down from 25% spending over 15% in 2022.

Koolen said the solution requires a dual approach: “We need both long-term investments in reskilling and short-term measures to relieve pressure and enable future growth.”

In South Africa, adoption is already underway. Education group AdvTech, through its IIE subsidiary, has integrated AI tools into its learning platforms, reaching over 60,000 students.