Business
The GenAI Rush: South African Companies Are Diving In Without a Plan
South African firms are betting big on generative AI, but without a strategy, they may be risking more than just poor ROI.
Everyone’s Using It, But Who’s Really in Control?
From boardrooms in Sandton to IT departments in Cape Town, South African enterprises are quickly jumping on the generative AI (GenAI) wave. According to the 2025 Generative AI Roadmap released by World Wide Worx in collaboration with Dell Technologies and Intel, a staggering 67% of large businesses are already using GenAI tools like Microsoft Copilot and ChatGPT.
That’s a huge leap from just 45% the year before.
It’s official: GenAI is the fastest-growing digital trend in the country.
But there’s a twist.
Despite this rapid uptake, most companies have no formal plan for how to manage it. Think of it as putting your foot on the accelerator while still learning how to drive.
Only 14% of companies have a formal AI strategy. Even fewer, just 13% have any governance, ethical guardrails, or data privacy policies in place. The rest are winging it.
The Benefits Are Clear, but the Gaps Are Dangerous
Let’s be real. Businesses aren’t using GenAI for fun, they’re getting results:
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86% say they’ve become more competitive.
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83% report higher productivity.
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66% say customer service has improved.
But those wins could be short-lived without proper structures in place.
Arthur Goldstuck, CEO of World Wide Worx and lead analyst of the report, didn’t mince words:
“Many companies think using an AI tool is the same as having an AI strategy—it’s not. Without governance, organisations are walking blindfolded into a future shaped by AI.”
Shadow AI: The Risk You Don’t See Coming
There’s also a quiet storm brewing under the radar: Shadow AI.
That’s when employees use GenAI tools without official permission or oversight. It’s happening more than you might think:
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32% of businesses report unregulated GenAI use.
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Another 20% admit to a mix of formal and informal use.
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84% of companies agree that proper oversight is crucial—but few are doing anything about it.
This is where things get risky. Without clear rules, shadow AI can lead to security breaches, unethical outputs, or worse—decisions based on inaccurate or biased AI results.
In South Africa’s already complex regulatory and legal environment, a scandal involving unmonitored AI could spell disaster.
The AI Divide: Winners and Losers in the Making
The report also hints at a new kind of inequality emerging in South Africa, one not based on income or access to tech, but on how smartly AI is used.
“We could see a GenAI disconnect,” says Goldstuck, “between organisations that embed AI ethically and strategically—and those that either misuse it or ignore it altogether.”
That divide could impact productivity, job creation, and even South Africa’s global competitiveness.
Skills First, Sustainability Later
Here’s a bit of good news: South African companies are investing in people. A whopping 87% say they’re prioritising GenAI skills training and employee upskilling.
But sustainability? Not so much.
More than 75% of businesses surveyed have no strategy to track or reduce the energy consumption of GenAI tools—despite AI’s growing carbon footprint.
With South Africa’s energy grid already under strain, and climate action high on the agenda, this could soon become a flashpoint.
South African enterprises are all-in on GenAI and for good reason. The productivity gains and competitive edge are undeniable. But without a solid foundation of strategy, ethics, and infrastructure, they’re flying blind.
The roadmap from World Wide Worx offers more than stats, it’s a wake-up call.
If businesses want to ride the AI wave rather than get wiped out by it, the time to build governance, invest in infrastructure, and train ethically is now.
Because in the AI future, how you use the tools will matter just as much as which ones you pick.
{Source: IOL}
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