Johannesburg, 27 Mar 2025
The age of AI is here, transforming businesses and driving competitive advantage for those who embrace it. But AI technology is so new and evolving so rapidly that committing capex to the technology businesses need in the age of AI could prove to be a costly mistake.
This is according to David Buck, General Manager at InnoVent Rental and Asset Management Solutions.
Buck says: “While organisations need to future-proof their business with AI, they may not have the budget to invest in all new hardware. A major consideration is the fact that end-user devices are going to have to be more powerful to harness AI. They're also going to be more expensive. There is uncertainty around the specifications of the devices that will be needed to run AI now and into the future – so you don’t want to invest heavily in devices when you aren’t sure of what their lifespan will be.
“In many organisations, it still needs to be decided exactly what areas of the business actually need AI. This creates further uncertainty in procurement,” he adds.
Because AI infrastructure is expensive and evolving so rapidly, organisations should future-proof their business by adopting the technology they need in an opex, rather than a capex, model, Buck says.
“History has taught us that if we don’t evolve, we stagnate, so organisations can’t afford to sweat legacy assets in a time of dramatic change – such as the AI era," he says.
“Nobody can afford to fall behind their competitors by not embracing AI. But you don’t need weighty upfront capex costs to scale up the business to be ready for AI, move quickly and start experimenting with the technology," Buck says. "Because the tech requirements for harnessing AI are uncertain, the best option is to move to an opex model to stay ahead, at lower risk.”
Buck says: “InnoVent’s opex models are structured to reduce the risk, allowing organisations to harness the advanced technology they need without being stuck with equipment that could be obsolete or outdated in two to three years time. We take on the risk so our clients can stay ahead of the AI adoption curve and lower their costs through an opex model.
“In times of uncertainty or rapid digital evolution, don't buy – lease. Our blue-chip clients see leasing as a safeguard against the losses associated with buying equipment that is going to evolve. Organisations should be moving now to replace older devices with AI-ready devices, mitigating the costs through low rates that they would get through InnoVent on an opex structure,” he concludes.
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