Although generative artificial intelligence (GenAI) and AI adoption is rising among South Africans, concerns remain about its future developments.
This is one of the key findings of PwC’s Voice of the Consumer Survey 2024, which analyses consumer sentiment and purchasing decisions across the globe.
A total of 1 009 South Africans participated in the global survey, which reflects the insights and perspectives of more than 20 000 consumers across 31 countries and territories on a range of issues, including finding value for money and caring for the environment.
With AI infiltrating almost every industry, consumer companies face the challenge of responsibly aligning consumer sentiment towards emerging technology – such as GenAI − with the current and potential capabilities.
Eighty percent of surveyed local consumers expressed concerns about GenAI’s future developments, relating to data security and the ethical use of AI, while 89% demanded assurances their personal information won’t be shared.
Dave Ives, PwC South Africa consulting partner, points out that many companies are investigating the opportunity to leverage GenAI tools. However, an overwhelming majority of South African consumers (92%) are concerned about the protection of their personal data.
“The extent of the willingness to use AI from South African consumers is what came out strongly in the survey. We are seeing high use and acceptability of GenAI and AI usage and adoption in SA due to product research and for functions such as improved understanding of the context and content.
“Although more than half of consumers trust GenAI for simpler tasks, such as aggregating product information or providing recommendations, consumers are less confident about its usage in higher-risk, more personal services, such as healthcare,” notes Ives.
As such, companies must tread carefully in integrating technology that can reduce operating costs, addressing consumer concerns and maintaining ethical standards, he adds.
The launch of OpenAI’s ChatGPT in November 2022 brought to public attention the power of GenAI. Since then, a plethora of large language models (LLM) have been introduced, including Google Gemini (previously Bard), Microsoft Copilot, Elon Musk's xAI, IBM Watson Studio, AmplifAI and Amazon Web Services’ Lake Formation, among other contenders in this space.
While South African consumers’ propensity to use AI and GenAI is not as high as overseas markets, it correlates closely with the growth in smartphone and device usage in SA, Ives explains.
When new capabilities, such as online translation, are introduced on GenAI platforms, this is expected to lead to a bigger consumer uptake in SA, he points out.
Today, adoption of machine learning and GenAI applications, such as LLM and text-to-image tools, varies among South African brands.
Companies are using these tools for internal improvements, such as supply chain optimisation, company information management and pricing strategies. Some brands have progressed further, experimenting with consumer engagement and marketing personalisation through design-led tools in controlled environments or ‘sandbox’ settings.
According to the survey, 57% of consumers trust AI to provide product recommendations. This number is expected to continue to climb as familiarity with ChatGPT and other AI applications increases, and if consumers turn away from incumbent search engines and towards AI platforms.
“We’re also seeing more adoption, as large language models have made AI so accessible, making it a lot less scary for people. The large-scale adoption of AI tools being embedded into productivity suites like Copilot in Microsoft 365 is growing in internal use cases to support customer processes. This highlights the crucial balance companies need to strike between technological innovation and the human touch,” concludes the PwC study.
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