AI is at the core of the new phase of digital transformation, from AI-enhanced PCs to advancements in data centre design. South African tech leaders must prepare for a year dominated by this technology, says Doug Woolley, GM and VP, Dell Technologies South Africa.
"This year, AI will shift from exploration to execution," says Woolley.
“According to McKinsey, GenAI usage has doubled in just ten months, where businesses in these stages are learning, testing and gaining insights into what AI can achieve. For many, the test and learn phase is starting to pay off.”
Dell Technologies’ Q2 2024 Innovation Catalyst Research revealed that 49% of South African respondents are creating a dedicated budget for AI projects, with plans to invest in training, GenAI-enhanced software, and consulting services over the next 18 months.
Additionally, 21% have begun the process of deploying solutions for GenAI.
Dell cites a Strategy report which estimates that GenAI could contribute up to $23.5 billion annually to the Middle East's economy by 2030. The media and entertainment sector is expected to lead the charge, with a projected impact of $8.5 billion, followed by healthcare at $3.8 billion, banking and financial services at $3.5 billion, and IT and telecommunications at $2.9 billion.
For the region’s media, healthcare, and finance industries, it’s time to move from pilot projects to scalable solutions, Woolley adds. The focus should now be on developing tailored, scalable AI applications that address current challenges while also positioning companies for future opportunities.
AI agents
2025 will also mark the rise of AI agents, which go far beyond traditional chatbots or virtual assistants, says Woolley. Unlike the reactive systems of the past, AI agents are evolving into proactive tools capable of managing complex workflows.
“AI agents are software systems that can plan, make decisions and take action to achieve pre-defined goals. They will be everywhere next year and will have a big impact on how we use AI,” he says.
“Routine, task-oriented roles may diminish, and new opportunities, such as software composers, AI content editors and prompt engineers will gain prominence. It will empower leaders to explore new roles, innovate, and lead in a competitive business landscape,” adds Woolley.
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