A new report by World Wide Worx and Dell Technologies warns that South African businesses are increasingly adopting generative AI (GenAI) without proper regulation or strategy, raising risks for companies and employees alike.
GenAI use among medium and large enterprises rose from 45% in 2024 to 67% in 2025, but only 15% have an official usage policy. Meanwhile, “shadow AI”—unauthorized use by employees—jumped from 23% to 32% over the same period.
“The longer this continues, the more harm can be caused in a regulatory and ethical vacuum,” said Arthur Goldstuck, CEO of World Wide Worx.
Only 14% of companies have a defined AI strategy at the organizational level, while 22% have one at the divisional level. Over a third are still developing one, and 22% have no plans in place.
Key barriers to adoption include:
- High implementation costs (39%)
- Data privacy concerns (29%)
- Lack of skilled talent (28%)
- Resistance to change (27%)
Despite the challenges, sentiment around GenAI is increasingly positive. In 2025, 51% of businesses reported GenAI significantly boosted both productivity and competitiveness. Use in customer service also saw gains, with 37% of businesses now “very positive” about its impact, up from 18% in 2024.
The most popular GenAI platform remains OpenAI’s ChatGPT, used by 93% of respondents. Microsoft’s Copilot saw an uptick, rising from 62% to 74%, while Google’s Gemini dropped from 56% to 41%.
Businesses primarily use GenAI for:
- Email creation (94%)
- Report writing (87%)
- Market research (74%)
- Marketing content (68%)
The findings underline the urgent need for formal AI policies, employee training, and strategic oversight as GenAI tools become integral to South African business operations.
