A recent IBM study reveals that South African business leaders are aggressively adopting generative AI technologies, despite significant challenges in workforce readiness and regulatory compliance.
Nearly two-thirds of South African CEOs believe their teams are equipped to incorporate generative AI, according to a global survey conducted by the IBM Institute for Business Value. However, this optimism is tempered by a stark reality: 57% of these leaders admit they’re pushing for adoption faster than some employees are comfortable with.
The study, which included 3,000 CEOs from over 30 countries, highlighted a critical disconnect between ambition and preparation. While 53% of South African CEOs report hiring for generative AI roles that didn’t exist a year ago, more than half haven’t assessed the technology’s impact on their workforce.
“There’s a clear tension between the drive for innovation and the need for careful implementation,” said Ria Pinto, General Manager and Technology Leader at IBM South Africa. “Companies need to balance their competitive ambitions with thoughtful consideration of workforce implications.”
This aggressive push towards AI adoption comes as South African businesses face mounting pressure to innovate. Nearly half of the surveyed CEOs ranked product and service innovation as their top priority for the next three years, outpacing the global average of 37%.
However, the path to innovation is fraught with obstacles. More than half of the CEOs cited regulatory constraints as their primary barrier, underscoring the complex landscape businesses must navigate as they implement cutting-edge technologies.
The talent crunch is another significant challenge. While 57% of CEOs believe their recruitment efforts are delivering necessary skills, more than half are struggling to fill key technology roles. This skills gap is likely to widen, with CEOs estimating that over a third of their workforce will need retraining within the next three years.
Despite these hurdles, South African business leaders remain bullish on AI’s potential. Forty-three percent are prioritising forecast accuracy to better understand sales volumes, indicating a strong belief in AI’s ability to drive data-informed decision-making.
