South African enterprises are rapidly adopting Generative AI but without formal strategies, study finds
Image: Pexels
South African enterprises are rapidly integrating Generative AI (GenAI) into their operations, but most are doing so without formal strategies, dedicated leadership, or the infrastructure required to maximise value and minimise risk.
This is the key finding of the South African Generative AI Roadmap 2025, based on a study by World Wide Worx in collaboration with Dell Technologies and Intel. Arthur Goldstuck, the CEO of World Wide Worx and principal analyst of the study, released the report on Thursday.
The report, which surveys over 100 mid-sized and large enterprises across industry sectors, shows that GenAI adoption has climbed from 45% of large enterprises in 2024 to 67% in 2025.
This dramatic rise positions GenAI as the fastest-moving digital trend in the country. However, in a rush to adopt the fast-growing technology, there is a need for organisations to take the foundational steps of planning and governance. Doing so will more clearly connect AI to people and processes and help organisations reap genuine, sustaining return on investment.
'Many organisations are simply unaware of the gaps they're leaving in their systems,' said Goldstuck 'The risk goes beyond the technical, and includes reputational, ethical, and operational vulnerability. While the first step of technology adoption is well underway, our survey demonstrates there is room for operational growth.'
According to the report's findings, AI adoption has brought clear benefits to the organisations using it:
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
86% of GenAI users cite increased competitiveness as a result of using AI tools.
83% report improved productivity.
66%
see enhanced customer service.
Yet, behind these numbers lies an operational gap: Only 14% of organisations have a formal company-wide GenAI strategy.
Just 13% have implemented governance or ethical frameworks in the form of guardrails for safety, privacy and bias mitigation.
39%
cite high implementation cost as the primary barrier to GenAI adoption.
AI maturity requires foundations
'The roadmap aims to help guide stakeholders to fully understand the scope of GenAI, and to build transparent strategies that deliver on its promise without placing enterprises at risk,' says Goldstuck. 'What's most startling is that many companies think using a GenAI tool is the same as having an AI strategy.'
As companies race to embed GenAI tools like Microsoft Copilot and ChatGPT into business functions, most are overlooking deeper transformation through infrastructure, skills and internal capability. Holistic AI infrastructure, combined with people and processes, is critical to scaling AI deployments and clearly connecting them to tangible return on investment.
Shadow AI
The report raises the alarm about 'shadow AI' – the unsanctioned use of GenAI by employees without oversight. Currently: 32% of businesses report informal or unregulated GenAI use.
of businesses report informal or unregulated GenAI use. A further 20% report a mix of official and unofficial GenAI use.
further report a mix 84% say oversight is an important or very important success factor for GenAI deployment.
Critical governance measures include clear principles for oversight, accountability, and responsible use. It enables organisations to build trust, reduce risk, and drive long-term value.
'The current use of GenAI is largely taking place in a regulatory and ethical vacuum,' Goldstuck warns. 'The longer this continues, the more harm can be caused, to both businesses and individuals, before these guardrails are in place.
'Without governance, organisations are walking blindfolded into a future shaped by AI. That might be exciting, but it is not sustainable.'
The roadmap also identifies two areas of opportunity:
Business and Societal impact : Over 75% of respondents have no measures in place to monitor or reduce the energy use and footprint of GenAI.
Skills development
: A massive 87% of businesses have committed to GenAI upskilling or training of employees.
The report cautions that South Africa could find itself divided by the ability to use GenAI wisely and scale deployments as the technology matures.
Goldstuck said, 'There's a real risk of a GenAI disconnect in South Africa between those who use GenAI deliberately, strategically and ethically, and those who use it blindly or not at all.'
BUSINESS REPORT
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
28 minutes ago
- IOL News
Citrus and Wine industries plead with Ramaphosa for protection from looming tariffs
The Citrus Growers Association of Southern Africa (CGA) in a statement said they want an exemption for seasonal fresh produce from US President Trump tariff. Image: Doctor Ngcobo / Independent Newspapers As US President Donald Trump's sweeping and wide spread tariffs close in on South Africa, the citrus and wine industries have called for action to be taken by President Cyril Ramaphosa to stave off the detrimental effects it could have on them. On Monday, the wine industry said that South Africans should double down on supporting the local wine industry to offset the 30% tariffs that the United States government has slapped on South African wine exports. The industry stated that the tariffs threaten to erode the gains the local wine industry has achieved in the bumper harvest of 2025 and will potentially haemorrhage the jobs in the wine industry ecosystem. Eustace Mashimbye, Chief Executive Officer of Proudly South African said, "Spurred by favourable preferential trade terms from the African Growth and Opportunity Act (AGOA), South African wine exports to the United States enjoyed zero tariffs and propelled the United States to become South Africa's fourth-largest wine export market by value after the United Kingdom, Germany, and the Netherlands." According to the figures released by the South African Wine Industry Information and Systems (SAWIS), approximately R600 million worth of wine was exported to the United States in 2024. 'The 30% tariffs on South African wine exports to the United States don't bode well for the viability, margins, and jobs in the wine industry. We must look for alternative markets, which is a laborious process that takes time. Currently, the most viable market is us. As consumers, hoteliers, restaurant owners and liquor traders, we have an opportunity to buffer this important industry against the looming headwinds by ramping up support for local wine winemakers,' said Mashimbye. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'Over and above showcasing the finest wines from emerging wine makers, the Local Wine Expo also fosters national pride and showcases career and entrepreneurial opportunities that are available in this space," she said. Meanwhile, the Citrus Growers' Association of Southern Africa (CGA) said it wrote to President Cyril Ramaphosa, asking for urgent action on behalf of rural communities in the Northern and Western Cape where citrus to the US is grown and whose livelihoods are reliant on US-SA citrus trade. "This week, with the tariff deadline on Friday, is one of great anxiety for the citrus growers in the Western and Northern Cape. These two provinces annually export about 7 million cartons to the US," said Dr Boitshoko Ntshabele, CEO of the CGA. The CGA said it asked President Ramaphosa to urgently facilitate an extension of the current 10% US tariff beyond 1 August, which would allow for negotiations toward a mutually beneficial trade agreement. The CGA also requested that, if a general extension of the deadline is not possible, an urgent request for a specific extension for seasonal fresh produce should be secured. Seasonal fresh produce is perishable and cannot be stored for extended periods, like other trade products. The midpoint of the 2025 export season has just been passed, which means hundreds of thousands of cartons of citrus are ready in packhouses to be shipped to the US over the next few weeks. The implementation of a 30% tariff on 1 August will mean most of this fruit will be left unsold. South African citrus growers do not pose a threat to US growers or jobs, as the produce sustains demand when local US citrus is out of season, benefiting US consumers. "Citrus as a source of nutrition also helps to keep America healthy. Should we not be able to secure a favourable trade deal, or the concession for fresh produce, local job losses before the next season will be a certainty," added Dr Ntshabele. Gerrit van der Merwe, Chairman of the CGA, said, "Being a grower in Citrusdal, I am very worried about the effect the tariffs will have on our town and the wider Cederberg municipality. Citrus forms the economic heart of the area. Not just farmers and farm workers will feel the impact, local businesses and even the funding of social support programmes will be affected as well. The social fabric of some rural towns in the Western and Northern Cape is being threatened." "Local growers have also said that a 30% tariff could not only stifle future growth, but lead to the eventual destruction of between 500 and 1000 ha that would simply become unprofitable," Van der Merwe added. BUSINESS REPORT
The Star
44 minutes ago
- The Star
SARS introduces new enhancements for non-resident taxpayers in 2025 tax return process
The South African Revenue Service (SARS) has moved to make things easier for non-resident taxpayers earning income from South African sources by introducing new enhancements to the 2025 tax return process . These changes include updates to the ITR12 tax return form to help ensure non-residents complete the correct sections and submit accurate returns. "These enhancements aim to ensure that non-residents complete the correct required fields in the return. An interim solution to activate this part of the tax return has been introduced via the SARS Online Query System (SOQS)," SARS said. "This allows non-resident taxpayers to request the non-resident section of the tax return. A more permanent solution, directly on the tax return through the tax return 'wizard', will be introduced later. To use SOQS to enable the non-resident section of the tax return: On the SARS website homepage, click on the SOQS icon , and navigate to the ' Non-Resident Tax Return Type '. Complete the personal details as prompted. Once SARS has validated the information, a One-Time Pin (OTP) will be sent to the contact details on record. Choose the 2025 tax year and answer yes or no to the questions that will follow. Depending on your answers, your tax return will now be in the correct format and can be retrieved through eFiling in the normal way. According to the revenue service, the "taxpayer's information will be stored and used in the subsequent year of assessment unless the taxpayer's circumstances have changed subsequently".
The South African
an hour ago
- The South African
Here's the good petrol and bad diesel price news for August
The latest petrol and diesel price projections show that there's going to be mixed news at the pumps early next month. While the petrol price is set to drop, the diesel price will hit South Africa's motorists harder in the pocket should market conditions remain the same for the next week. Below, the latest projections as received by The South African website from the Central Energy Fund (CEF), effective Friday, 25 July. FUEL PRICE CHANGE Petrol 93 decrease of 34 cents Petrol 95 decrease of 30 cents Diesel 0.05% increase of 65 cents Diesel 0.005% increase of 63 cents Illuminating Paraffin increase of 29 cents If the market conditions were to remain consistent for the remainder of the month – an unlikely scenario with the rand/dollar exchange rate fluctuating and the oil price ever changing – a decrease of 34 cents is expected for petrol 93 octane motorists and a decrease of 30 cents for 95 users. Meanwhile, diesel motorists would see something between a 63 and 65 cents per litre increase. Finally, illuminating paraffin is expected to rise by 29 cents in price. FUEL PRICE IN SOUTH AFRICA IMPACTED BY TWO MAIN FACTORS: 1. The international price of petroleum products, driven mainly by oil prices 2. The rand/dollar exchange rate used in the purchase of these products Oil price At the time of publishing the brent crude oil price is $68.71 a barrel. Exchange rate At the time of publishing the rand/dollar exchange rate is R17.83/$. The final overall price changes for both petrol and diesel will be confirmed early next month with the new prices taking effect at midnight on Tuesday, 5 August 2025. Go easy on the accelerator until then, Mzansi. INLAND July Petrol 93 R21.79 Petrol 95 R21.87 Diesel 0.05% R19.35 Diesel 0.005% R19.41 Illuminating Paraffin R13.16 COASTAL July Petrol 93 R21.00 Petrol 95 R21.04 Diesel 0.05% R18.52 Diesel 0.005% R18.65 Illuminating Paraffin R12.14 Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
