Habib Mahakian, VP for southern and sub-Saharan Africa, Dell Technologies.
Research from Dell Technologies shows that while 96% of South African companies believe AI will transform their industry, only 42% are in the early-to-mid stages of their GenAI journeys.
This ambition-action gap was a central theme at the Dell Technologies Forum 2025 in Kyalami, Johannesburg yesterday.
The global study, which surveyed 2 850 business and IT decision-makers, including 50 from SA, found 92% of local businesses see AI as a key strategic priority. However, 94% face challenges in integrating it, and 34% struggle to keep up with the pace of disruption.
Dell executives said AI progress is being stifled by uncertainty over where to start, relevant costs and a limited pool of requisite skills. Other barriers include data security concerns, a lack of executive buy-in and difficulties integrating with existing systems.
Notably, 100% of the South African companies surveyed believe their teams lack the necessary skills to fully leverage AI. This marks a sharp increase in concerns compared to previous years, especially surrounding the safe implementation of GenAI, an area where 72% of local companies report insufficient knowledge.
Security fears are escalating. Seventy-six percent of local companies fear exposing sensitive data to third-party AI tools, a significant rise from 64% last year. A further 62% find it challenging to balance innovation with cyber security risks.
Infrastructure readiness remains a critical issue. Many companies report that their current IT environments are inadequate for AI workloads, citing needs for more processing power, AI-optimised hardware and enhanced data security.
“In South Africa, we’ve had a brain drain for a long time. That is a major challenge, along with the costs to begin and sustain projects,” said Bennie du Plessis, senior manager channel for Dell Technologies, sub-Saharan Africa.
Du Plessis reiterated the need for close co-operation. “The AI journey has opened up an entire ecosystem of collaboration… We have to collaborate with our partners and even partners need to collaborate with one another.”
Asked whether the industry is doing enough to help fast-track this collaboration to action AI, Du Plessis said it’s a case of ‘if you build it, they will come’. “This means that in terms of collaboration between Dell and its partners, we will find opportunities for partners, we will pull them in. There will be skills transfer both ways… they will find opportunities for us.”
Du Plessis added there have been several strong AI use cases in key sectors, including healthcare, agriculture and education.
Scaling AI requires a holistic approach, according to the research. Building the right infrastructure, fostering new skillsets and prioritising secure and ethical practices are key.
“South African companies are at a tipping point,” said Habib Mahakian, VP for southern and sub-Saharan Africa at Dell Technologies. “The biggest hurdle is not just the technology, but also the people and processes around it.”
