The artificial intelligence (AI) revolution is here, fundamentally altering how businesses operate, governments deliver services, and people interact with technology globally. While AI is driving efficiencies, unlocking innovation, and creating new opportunities across various industries in South Africa, from banking and retail to mining and the public sector, the country faces a critical challenge: a severe shortage of AI-related skills. This skills gap is not merely a buzzword; it is a systemic challenge that threatens South Africa’s competitiveness, risks widening inequality, and leaves millions of workers unprepared for the future.
The demand for AI skills is skyrocketing. While analytical AI (like machine learning for classification or prediction) has been indispensable in various industries, the rise of GenAI, capable of mimicking human creativity in text, art, and music, has further surged excitement and economic potential globally. Businesses across Africa are increasingly prioritising skills related to AI development, with 85% saying AI development skills are a priority and 83% prioritising GenAI skills. In South Africa specifically, the need for AI skills was highest among surveyed African organisations, at 78%. Executives believe 40% of their workforce will require new skills in the next three years due to AI.
This surging demand highlights a critical shortage. South Africa, despite improvements in education access, faces a significant gap between the skills of the workforce and the competencies employers require. Many businesses are struggling to fill AI-related positions due to a lack of qualified talent. This includes a high demand for professionals with expertise in specific areas such as:
- Prompt engineering
- Machine learning
- Data science and analytics, essential for wrangling large datasets, statistical analysis, and data visualisation
- AI ethics, involving the understanding of AI’s societal implications and responsible deployment
- Programming for AI, particularly in languages like Python, and knowledge of frameworks like TensorFlow and PyTorch
The consequences of this shortage are already evident. Nine out of ten companies surveyed cited negative impacts, including project delays, failed innovation initiatives, and an inability to take on new work. Multinational companies may resort to outsourcing AI work or recruiting foreign talent, which is not sustainable. The lack of investment in skills-related initiatives, where the portion of budget allocated has declined since 2023, further exacerbates this risk, potentially causing organisations to fall behind competitors.
The landscape of skills development in South Africa is undergoing a significant transformation with the transition from Sector Education and Training Authorities (SETAs) to the Quality Council for Trades and Occupations (QCTO). The QCTO is now playing a pivotal role in shaping the future of skills development nationwide. This shift demands a pragmatic approach, particularly in addressing the urgent need for AI education. One crucial step is the establishment of shorter, focused AI Skills Programmes designed to directly respond to the current education gaps and industry demands for AI expertise within South Africa, especially among small businesses.
Several factors contribute to this persistent skills gap. The rapid advancement of AI technologies makes it hard for education systems and professionals to keep up. There is a mismatch between traditional academic curricula and the practical, job-ready skills needed in today’s tech-driven economy. Underinvestment in vocational training and unequal access to quality education, particularly in disadvantaged communities, also play a significant role. The emigration of skilled South Africans (“brain drain”) further depletes the local talent pool.
Educational institutions have a vital role to play. South Africa’s school and university curricula need fundamental redesigns to integrate AI literacy from early stages. Currently, only a handful of universities offer dedicated AI programmes, and this needs to change. Universities and technical colleges must offer specialised AI and machine learning courses, ideally integrating practical, hands-on experience. Some institutions, like Tshwane University of Technology, are utilising online learning to offer career-focused, accredited qualifications aligned with industry requirements.
However, the challenge requires a coordinated effort beyond traditional education. Accessible and affordable training programmes, tailored to local needs, are crucial. Companies must take the lead in AI upskilling for employees across all levels, as AI is relevant for diverse roles beyond data scientists. Partnering with AI training providers and offering micro-credentials, mentorships, and hands-on projects are global best practices that South African businesses should follow.
The government can significantly drive AI upskilling by offering tax incentives for businesses investing in AI training and creating public-private partnerships to establish AI skills hubs in historically disadvantaged communities. Online learning platforms offer a flexible solution, providing self-paced courses that allow employees to learn new skills without leaving their jobs. Such initiatives are vital to empower communities and ensure AI literacy is not limited to privileged sectors.
Addressing the skills gap is more than an employability issue; it is a national imperative. A more skilled population can drive innovation, boost economic growth, and reduce social inequality. By building an AI-savvy workforce, South Africa can attract investment, foster innovation, and position itself as an AI leader on the continent. Companies, educational institutions, and government leaders must act now to make AI skills development a national priority. This requires a strategic approach involving auditing existing skills gaps, investing in targeted training, expanding educational offerings, and implementing supportive policy frameworks and financial incentives.
The AI revolution presents both challenges and opportunities. South Africa has the potential to build a thriving AI-powered economy, but only if it invests urgently in bridging the AI skills gap and ensures its citizens are ready to shape, lead, and benefit from this transformative era.
By Rowen Pillai, CEO of LeanTechnovations
