Qlik Report Reveals AI Optimism and Challenges in South Africa

Qlik, a global leader in data integration, analytics and artificial intelligence (AI), has launched research of 4,200 C-Suite executives and AI decision makers, revealing what is hindering AI progress globally and how to overcome these barriers.

From a local perspective, the study has revealed that South African businesses are increasingly optimistic about the potential of artificial intelligence (AI) to drive profitability and achieve strategic goals. With the majority [92%] of organisations within the region deeming AI as either “absolutely essential” or “very important” to their success over the next 12 months, it’s clear that AI is becoming a cornerstone of corporate strategy in the region.

Most local respondents [75%] also agreed that ready-made solutions are a preferred way for businesses to start working with AI solutions, providing a strong foundation.

Local AI project progress: the good and the not-so-good

Qlik’s research found that a noteworthy 99% of South African organisations are familiar with AI features and procedures, reflecting a high level of awareness across the board. This understanding has also translated into meaningful AI adoption, with businesses leveraging the technology in areas such as: knowledge sharing, training and enablement [58%]; generating insights from customer data [51%]; creating cost-saving efficiencies [50%]; optimising operations [45%]; and predictive forecasting [40%].

South African companies reported a strong pipeline of AI initiatives, with the average business managing anywhere between one and 50 AI projects in the planning and scoping stages, and between 36% and 48% of projects already in development or testing phases. Furthermore, an encouraging average of 23 projects per organisation are already live and operational.

However, despite these positive advancements, the survey results highlight that businesses face notable challenges in scaling AI projects effectively, indicating that an average of 17 projects per company have been paused or cancelled. This is often due to challenges such as a lack of skills to support implementations post roll out [30%], insufficient resources to develop and work on the projects [25%], budget challenges [21%], and miscommunication around the project objectives [21%].

While South African organisations are optimistic about their AI potential, 76% agree that industries need to improve in nurturing and upskilling AI talent, listing the top three constraints preventing businesses from achieving their AI goals being as a lack of skills [39%], a lack of trust in AI [29%], and insufficient resources [28%].

In terms of mistrust around AI, most businesses [87%] recognise the need for more training and education both internally and for customers, with 84% agreeing that the promotion of the benefits of AI usage should also be improved.

A vision for AI leadership

Interestingly, 75% of respondents believe that South African companies have the potential to lead the world in AI skills within the next five years. However, to achieve this, businesses will need to address critical obstacles such as regulation, governance and resource gaps. The majority [83%] of those surveyed also agreed that a greater role in funding and AI training must be played by local government.

South African organisations clearly recognise the transformative potential of AI, but accessing its full value requires a focused approach to overcoming talent shortages and resource constraints. Qlik is committed to supporting businesses in navigating these challenges and harnessing data-driven intelligence to its fullest potential.

– Tejas Mehta, Senior Vice President and General Manager, Middle East and Africa, Qlik

Business leaders know the value of AI, but they face a multitude of barriers that prevent them from moving from proof of concept to value-creating deployment of the technology. The first step to creating an AI strategy is to identify a clear use case, with defined goals and measures of success, and use this to identify the skills, resources and data needed to support it at scale. In doing so, you start to build trust and win management buy-in to help you succeed.

– James Fisher, Chief Strategy Officer, Qlik