Only 18% of surveyed organisations in South Africa are fully-prepared to deploy and leverage artificial intelligence (AI)-powered technologies, which underscores the challenges companies face in adopting, deploying, and fully leveraging AI. This is one of the key findings from the Cisco 2024 AI Readiness Index based on a double-blind survey of 7 984 senior business leaders from organisations with 500 or more employees across 30 markets, including SA. Some 151 of the respondents are from SA. These leaders are responsible for AI integration and deployment within their organisations. The AI readiness index is measured across six pillars: strategy, infrastructure, data, governance, talent, and culture. The survey reveals an AI readiness gap for SA, reflected across all pillars, with infrastructure identified as a pain point. Given the rapid market evolution and the significant impact AI is anticipated to have on business operations, this readiness gap is especially critical, notes the report. Readiness gaps were reflected in compute, data centre network performance, and cyber security, among other areas. Only 20% of organisations have the necessary graphic processing units (GPUs) to meet current and future AI demands and nearly half (48%) have the capabilities to protect data in AI models with end-to-end encryption, security audits, continuous monitoring, and instant threat response. “AI is reshaping the future of business on a global scale, and South African businesses must adapt to keep pace with the global market. While AI has amplified the sophistication of threats, it also presents an unparalleled opportunity to leap forward with advanced capabilities. Businesses must address gaps in infrastructure, skills, and governance to protect their assets and fully harness AI’s transformative power,” says Smangele Nkosi, GM at Cisco South Africa. No AI gains AI has become a cornerstone for business strategy, and there is an increasing urgency among companies across the globe to adopt and deploy AI technologies. In SA, companies are committing resources to AI, with over 50% indicating that between 10% to 30% of their IT budget is allocated to AI deployments. Notably, half (50%) of surveyed organisations plan to allocate more than 40% of their IT budget to AI investments in the next four to five years, a significant increase from the companies who said they are allocating a similar portion of their IT budget to AI currently. Despite AI investments in strategic areas like cyber security, IT infrastructure, data analytics and management, many companies report that returns on these investments are not meeting their expectations. “Despite increased investments, more than 45% of respondents said they have either seen no gains or the gains have fallen short of their expectations in augmenting, assisting, or automating current processes or operation. “Companies are investing, but gains fall short of expectations.AI investments have focused on three strategic areas: cyber security (55%) of companies are at full/advanced deployment), IT infrastructure (50%), and data analysis (52%). Organisations must move beyond incremental improvements and adopt a holistic approach to readiness. By addressing infrastructure and talent gaps, South African businesses can create a foundation that not only supports AI integration but also ensures sustainable value creation,” adds Nkosi. The top three outcomes they aim to achieve through AI investments include improving the efficiency of systems, processes, operations, and profitability; the ability to innovate and remain competitive; and create a better experience for customers and partners. There is mounting urgency from top leadership to implement AI technologies. More than half (57%) of companies report that the CEO and the leadership team are driving the pressure to deploy AI, followed by the board of directors (45%) and the investors and shareholders (41%). As the clock ticks, businesses in the region are accelerating efforts and increasing investments to overcome barriers and embrace AI-driven transformation. “Companies recognise they need to enhance their readiness to leverage AI effectively. Across South Africa, 48% rated improving scalability, flexibility, and manageability of their IT infrastructure as their top priorities, highlighting an awareness of the gaps they that must be addressed to improve overall AI readiness.”

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