AI Could Save SA Manufacturing But It Needs Help

SA Manufacturing is Betting Big on AI But Can it Deliver?

South Africa’s manufacturing industry is dreaming big. From car assembly lines to pharma labs, local businesses see artificial intelligence (AI) as the game-changer they’ve been waiting for. The hope? Smarter operations, better productivity, and a way to fill a growing skills gap. But turning that dream into a reality is proving tougher than many expected.

A new PwC report, AI in Operations: Revolutionising the Manufacturing Industry, paints a picture of optimism tempered by practical roadblocks. While 81% of South African manufacturers expect AI to boost operating profits by at least three percentage points by 2030, only 15% say they’re currently seeing those returns.

Plenty of Promise, But Not Enough Pay Off Yet

South African firms aren’t short on ambition. More than half have moved beyond AI pilot phases, and many are already seeing some clear benefits: improved decision-making, faster delivery volumes, and greater flexibility on the factory floor.

In fact, according to the report, 57% say AI has helped them increase sales and delivery volumes. Even more telling? Nearly half report entirely new revenue streams from products and services made possible by AI.

But the pace is uneven. Despite global hype — supercharged by the rise of tools like ChatGPT and generative AI models that can write code, design products or simulate crash tests — local implementation often stalls due to cost, complexity and a shortage of AI-literate workers.

The Skills Crunch: AI’s Double Edged Sword

There’s a generational shift happening behind factory gates. As older, more experienced workers retire, manufacturers are scrambling to prevent a dangerous skills vacuum. Here, AI isn’t just a fancy tool — it’s a lifeline.

AI systems can guide less-experienced workers through high-stakes tasks like visual quality checks or predictive maintenance. In theory, this means new recruits can get up to speed faster without compromising safety or performance.

But here’s the catch: South Africa doesn’t have nearly enough AI specialists to keep up. And with top-tier AI software priced in dollars, many local firms struggle to afford the tools they need.

Who’s Winning the AI Race?

According to PwC, the automotive industry is South Africa’s AI trailblazer. From crash-test simulations to scheduling systems, AI is already reshaping how vehicles are designed and built. Pharma and medical technology firms are also pushing boundaries — using AI for everything from drug discovery to regulatory compliance.

By contrast, sectors like defence and retail are slower to adopt. That may not be due to resistance, but rather because these industries tend to focus their AI budgets on marketing and customer-facing tools — not the operational nuts and bolts examined in this study.

Data Drama: Clean Info, Dirty Problems

One major obstacle facing manufacturers everywhere is data — or rather, the lack of usable data. Globally, poor data quality is the single biggest barrier to AI adoption.

In South Africa, the problems are layered: limited AI skills, high implementation costs, and ongoing worries about data privacy and cybersecurity.

Many manufacturers still rely on fragmented legacy systems, with clashing formats and outdated processes that make it hard for AI tools to learn anything useful.

The fix? Hybrid systems that combine edge computing (processing data locally on-site) with cloud solutions are becoming more popular. There’s also growing interest in small language models (SLMs) — compact AI tools that can run on local servers without needing massive cloud resources.

What’s Next for SA Manufacturing and AI?

The potential is real. AI can help reduce energy use, cut admin costs, boost product pricing and streamline operations across the board. But without targeted investments in talent, training and infrastructure, the local manufacturing sector risks falling behind.

South Africa has the appetite for AI. Now it needs the people, partnerships and policy to make it stick.

What’s the Public Saying?

While social media commentary is limited outside of tech circles, conversations on platforms like LinkedIn suggest cautious enthusiasm. Local professionals are asking the big questions: How do we upskill fast enough? Who’s making AI affordable for South African firms? And most importantly — how do we make sure AI doesn’t leave our workers behind?

Got thoughts on AI in local manufacturing? We’d love to hear your perspective.
Let us know how your company is using AI, or if you’re an employee who’s experienced the shift firsthand.

Source:Busines Day Live

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