Artificial intelligence (AI) has become a core business priority for South African companies, according to new research by Dell Technologies, but the country’s organisations are struggling to translate ambition into full-scale implementation due to persistent challenges in skills, infrastructure, and security.
The findings, released at the Dell Technologies Forum South Africa held on 6 November 2025 at the Kyalami International Convention Centre, show that 92% of South African businesses now view AI as a key part of their corporate strategy. Moreover, 32% report measurable productivity and financial gains from early AI investments.
“South African companies are at a tipping point,” said Habib Mahakian, Vice President for Southern and Sub-Saharan Africa at Dell Technologies. “The ambition to enhance processes, customer experience and decision-making through AI is clear, but turning that ambition into large-scale, reliable and ethical AI applications remains a significant challenge.”
AI momentum meets operational roadblocks
Despite strong enthusiasm, 94% of local companies still struggle to embed AI across their operations, while 42% remain in the early-to-mid adoption phase. The study identifies three major barriers:
- Skills gap:
- 100% of respondents said their teams lack the necessary AI skills.
- 72% cited insufficient knowledge around safe and responsible GenAI implementation, a sharp increase from previous years.
- Security concerns:
- 76% of South African firms fear exposing sensitive data or intellectual property to third-party AI systems — up from 64% in 2024.
- 62% said balancing innovation with cybersecurity remains a critical challenge.
- Infrastructure readiness:
- Many companies admit their IT environments are not equipped for AI workloads.
- Bottlenecks include insufficient GPU capacity, outdated storage and networking systems, and inadequate data security frameworks.
Linking AI to sustainability and resilience
A promising insight from the report is that AI is increasingly being used to advance sustainability goals. Companies are leveraging AI for:
- Energy-efficient data centre management
- Reducing idle compute workloads
- Shifting inferencing to edge environments
- Implementing energy-aware AI architectures
Dell Technologies is supporting this shift through AI-optimised infrastructure that balances performance and environmental efficiency, including advanced cooling and modular system design.
From theory to practice
The Dell Technologies Forum placed strong emphasis on moving from conceptual AI discussions to practical execution, urging South African organisations to build the human, technical, and ethical foundations needed for enterprise-wide AI adoption.
“The biggest hurdle is not just the technology, but also the people and processes around it,” Mahakian said. “AI requires trust, new skillsets, and innovative ways of working. At Dell Technologies, we are helping organisations bridge these gaps through the right mix of technology, expertise, and collaboration.”
Why it matters
South Africa’s businesses are at a pivotal point in their digital transformation journeys. With AI now viewed as essential to competitiveness, success will depend on addressing human capital shortages, cybersecurity risks, and infrastructure readiness — while ensuring that innovation aligns with sustainability and responsible governance.
Dell’s findings suggest that while South African firms are ready to lead with AI, the next phase will be defined by execution, trust, and talent — not just enthusiasm.
