GenAI is the future in South Africa and the world: Are you on board?

Organizations that fail to innovate are doomed to fail. And right now, few innovations have captured the imagination as profoundly as GenAI.

According to research for NTT DATA’s Global GenAI Report, nearly three-quarters of C-suite executives in the country view GenAI as a game changer — and all of them expect it to have a material impact on their business. 

That’s because GenAI is far more than a fleeting trend. Rather, it’s a fundamental shift that is redefining business models across industries, and the positive sentiment is clear: 61% of respondents in South Africa express optimism about GenAI, 84% already have a well-defined GenAI strategy in place and 96% are planning further investment (of which nearly half will be at a significant level).

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The importance of high-quality data and dedicated teams

At the heart of successful GenAI implementations lies clean, diverse and high-quality data. It’s the lifeblood of any AI initiative — without it, even the most advanced algorithms will fall short. Most of the biases in algorithms are caused by “dirty” data. Organizations that recognize this and invest in their data-management practices – including by using innovative, cost-effective new services like NTT DATA’s Virtual Data Scientist — will be the ones to reap the rewards.

Moreover, the role of dedicated GenAI teams cannot be overstated.

Our report shows that organizations with dedicated teams are nearly three times more likely than others to be very satisfied with their GenAI efforts. This underscores the importance of not just acquiring the technology but also hiring the right people to develop and manage it.

Cloud-based solutions: the path to success

Speaking of technology, cloud-based solutions are a critical factor in the successful integration of GenAI — and outdated IT infrastructure is a significant hurdle.

The cloud offers scalability, flexibility and the ability to rapidly deploy and scale GenAI solutions, making it an indispensable tool in the AI toolkit. In the GenAI report, 96% of respondents in South Africa agree that cloud-based solutions are the most practical and cost-effective means to support GenAI applications.

At the same time, most respondents in South Africa say their current infrastructure is a barrier to effective GenAI deployment. It is imperative for these organizations to modernize their infrastructure so it can support the demands of GenAI.

Prioritizing ethical use and regulatory compliance

Next, the ethical use of GenAI and regulatory compliance are both paramount. Our report shows that nearly 8 in 10 C-suite executives in South Africa find government regulations on AI to be unclear, which is hindering innovation and investment.

This lack of clarity is a double-edged sword. On the one hand, it creates uncertainty and risk; on the other, it presents an opportunity for leaders to take a proactive role in shaping the regulatory landscape.

With 93% of respondents expecting an increase in spending on GenAI-related regulatory compliance, there’s clearly a strong awareness of the need to balance innovation with ethical considerations and compliance.

Rapid changes in the workplace

The long-term impact of GenAI on autonomous functions, routine work and management structures is expected to be profound. According to a Gartner^® forecast, “By 2028, at least 15% of day-to-day work decisions will be made autonomously through agentic AI, up from 0% in 2024.”*

This transformation is about both efficiency and reimagining the role of humans in the workplace. Routine tasks will be automated, allowing employees to focus on more strategic and creative endeavors. Yet, it’s a shift that also raises questions about job displacement and the need for reskilling.

In our GenAI report, nearly half of respondent organizations in South Africa admit that their employees lack the skills to work with GenAI.

The good news is that they are committed to addressing this issue. Nearly all plan to invest in employee education and training, focusing on upskilling the workforce and fostering a culture of innovation and continuous learning.

Management structures will also be disrupted by GenAI. Gartner predicts that, “By 2029, 10% of global boards will use AI guidance to challenge executive decisions that are material to their business.”**

This means that leaders must be prepared to work alongside AI, leveraging its insights while maintaining human oversight and accountability.

More GenAI-powered breakthroughs to come

The future of GenAI in South Africa and around the world is not just about incremental improvements. Groundbreaking developments such as the rise of agentic AI, polyfunctional robots and brain–machine interfaces will redefine what is possible.

Agentic AI, which can make autonomous decisions, is already starting to play a crucial role in sectors ranging from healthcare to finance. Polyfunctional robots that can perform multiple tasks will improve productivity and efficiency, and bidirectional brain–machine interfaces will bridge the gap between human and machine, creating new ways of interaction and control.

According to a Gartner prediction, “By 2030, 30% of knowledge workers will be enhanced by, and dependent on, technologies such as BBMIs (both employer- and self-funded) to stay relevant with the rise of AI in the workplace, up from less than 1% in 2024.”*

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These developments are not slowing down anytime soon, either. Gartner also forecasts that, “By 2030, 80% of humans will engage with smart robots on a daily basis, up from less than 10% today.”*

The evolution of GenAI will also spur major advances in computing that will push the boundaries of what is possible and drive the next wave of innovation. Quantum computing, for example, with its potential to solve complex problems at unprecedented speeds, will revolutionize fields such as cryptography, while edge AI is bringing the power of GenAI to edge computing.

Keep in mind the operational risks

Despite all the excitement, we must remind ourselves that with great power comes great responsibility. By 2028, according to Gartner, “25% of enterprise breaches will be traced back to AI agent abuse, from both external and malicious internal actors”.**

On the upside, Gartner also forecasts that, “By 2028, enterprises using AI governance platforms will achieve 30% higher customer trust ratings and 25% better regulatory compliance scores than their competitors.”*

This highlights the critical need for robust governance and oversight. Organizations must implement strict security measures and establish clear guidelines for the ethical use of GenAI, right from the start. The risks are real, but with the right approach, they can be managed.

The need for energy-efficient computing

As we embrace the power of GenAI, we must also consider its environmental impact. The need for energy-efficient computing models to support sustainable growth in GenAI is a critical consideration: 3 in 4 organizations say their GenAI ambitions stand in conflict with or are negatively affecting their sustainability goals, according to the GenAI report.

GenAI models’ high energy consumption is a growing concern, and organizations need energy-efficient solutions. Gartner predicts: “Through 2027, Fortune 500 companies will shift $500 billion from energy opex to microgrids to mitigate chronic energy risks and AI demand.”**

Microgrids are localized energy systems that can operate independently of or in conjunction with main grids, using advanced AI technologies to optimize energy generation, storage and distribution.

Let’s work together

The journey of GenAI in South Africa is just beginning, and the opportunities are vast.

Organizations that embrace GenAI with a strategic focus, high-quality data, dedicated teams and robust governance will lead the way. Let’s work together to embrace the AI revolution with confidence, responsibility and a commitment to innovation.

Because the future belongs to those who are ready to shape it.

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* Gartner Top 10 Strategic Technology Trends for 2025, Gene Alvarez, Tom Coshow et al, October 21 2024.

** Gartner, Gartner’s Top Strategic Predictions for 2025 and Beyond: Riding the AI Whirlwind, Daryl Plummer, Leigh McMullen et al, October 21 2024. Gartner is a registered trademark and service mark and Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.