Even though South African organisations have the intention to embrace artificial intelligence (AI), this doesn’t happen, according to Arthur Goldstuck, World Wide Worx MD and ICT analyst.
Goldstuck was speaking at Huawei’s recent virtual event, where he shared some insights into AI trends, as well as some key findings of its adoption in the country.
He said the significant obstacle to AI adoption is the perception of the high cost; however, more importantly is the shortage of skills. “That skills shortage is in fact holding back AI evolution in this country.
“But there are many initiatives under way for training in AI, for certification and for introducing it into universities and specialist academies.”
Artificial intelligence is regarded as one of the great careers of the future brought on by the fourth industrial revolution (4IR). However, SA has an ongoing digital skills gap.
The Department of Communications and Digital Technologies, with partners like Huawei, has been on a mission to ensure local young people are equipped and skilled in 4IR-related technologies, including AI, data science, 5G, robotics and drone piloting, to name a few.
Tech optimism
According to Goldstuck, technology optimists are predicting the new ‘roaring 20s’, which is a new era of progress. This new era, he stated, will be defined by the “big five” technologies, namely AI, robotic process automation, cloud-based business modelling, 5G and blockchain.
Goldstuck noted that 5G will have a considerable impact on all areas of technology through instant connectivity. In addition, blockchain is the underlying architecture that is going to create a massive shift.
“These five technologies will truly transform the way businesses operate and the way society interacts with business.”
He pointed out that the impact of these technologies is already being seen in several industries. “The digital storm is upon us,” he said, pointing to the demise of physical music distribution as one of the most powerful examples of how rapidly industries can be disrupted.
Goldstuck stated that physical banks, petrol stations and parking garages are the most likely next targets of digital disruption.
The petrol station will start to disappear by 2030, he said. “The writing is already on the wall, it’s just that we are not reading that writing yet.”
He pointed to the share of electric vehicles by 2030 in various markets, noting the Chinese market as one that will be in the lead. “Fifty percent of new vehicles are expected to be electric vehicles by the end of this decade.”
In comparison, the average global market share of electric vehicle sales is around 30% to 33%. “Of course, we’ll still have petrol stations, but they’re going to become fewer and further between; much like the bank branch where it’s going to become more and more difficult to find a bank branch in the next five to 10 years.”
Similarly, Michael Langeveld, vice-president of Huawei’s Africa cloud business, said 4IR is largely driven by AI or intelligent technology, accelerating the pace towards an intelligent world. “The impact is translated into the digitalisation of industries across the board.
“Cloud-based applications are fundamentally changing how we do business and go about our days.”
Langeveld is of the view his company is positioned “nicely” to bring net-new skills like 5G, cloud computing and artificial intelligence into the market.
Responding to a question about SA’s digital divide, Goldstuck said in the past, an access device or mechanism was considered as a barrier.
However, things have changed. Now, it’s a situation whereby 80% of the population has a cellphone, and increasingly those cellphones are smartphones, he stated.
For example, between 10 million and 14 million cellphones are sold in SA every year, and every year, the percentage of those that are smartphones is going up. Goldstuck estimates that roughly 70% of new phones sold are smartphones.
“When you consider that and you consider that each year that percentage goes up, by the middle of this decade, the vast majority of cellphone users in the country will be smartphone users. By the end of the decade, there won’t be such a thing as a non-smartphone in terms of smartphones.
“This means everyone has an access device in their hands but the barrier is the cost of using that access. At least 25% of smartphone users can’t afford to use that phone effectively because of affordability of data.”
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