South Africa Faces AI Talent Crunch as Global Skills War Intensifies

South African companies are increasingly struggling to fill positions requiring advanced artificial intelligence (AI) expertise, reflecting a global scramble for scarce talent.

The shortage was highlighted in preliminary findings from Xpatweb’s latest Critical Skills Survey, released at the firm’s annual Global Mobility Conference in Johannesburg on Aug. 13. The survey, now in its eighth year, is regarded as the most comprehensive measure of hard-to-fill roles in South Africa.

Managing Director Marisa Jacobs said ICT and marketing roles rank among the top five hardest to fill locally, with 14% and 10% of companies respectively reporting shortages. “The findings echo global studies showing AI-related positions are among the most difficult to recruit for,” Jacobs said.

A World Economic Forum report has estimated that half of all work activities could be automated by 2025. Meanwhile, Google and other tech giants have acknowledged paying multimillion-dollar packages to secure AI specialists, underscoring the demand worldwide.

In South Africa, 86% of organizations report difficulties recruiting critically skilled professionals, up from 79% in 2024. Engineering remains the single most in-demand field, while ICT and AI-focused roles continue to rise.

The Critical Skills Survey informs updates to the Department of Home Affairs’ Critical Skills List, which guides work visa approvals. Businesses say a role’s absence from the list is one of the largest barriers to hiring foreign talent, with 73% of respondents citing the visa process as a prohibitor.

Speaking at the conference, Deputy Finance Minister Ashor Sarupen said attracting highly skilled workers has a ripple effect. “For every one highly skilled employee brought into the country, seven unskilled jobs are created,” he said, adding that reforms in energy, transport and policy are key to improving competitiveness.

The Department of Home Affairs is rolling out reforms, including a new points-based system for work visas and the Trusted Employer Scheme, designed to improve transparency and reduce inconsistencies in adjudication.

“South Africa must position itself as a competitive emerging market,” Sarupen said. “We are in competition with countries such as China, India and Rwanda.”