Sunday Times

SA needs to get its AI infrastruc­ture in order, fast

- ARTHUR GOLDSTUCK Goldstuck is the founder of World Wide Worx and editor-in-chief of Gadget.co.za

Anew study reveals that just 11% of organisati­ons in South Africa are fully prepared to deploy and leverage AI, despite businesses being almost unanimous that there is increased urgency to deploy AI-powered technologi­es.

According to Cisco’s inaugural AI Readiness Index, due to be released this week, companies here face gaps across six business pillars: strategy, infrastruc­ture, data, governance, talent, and culture.

South Africa was one of 30 countries included in the 8,000-respondent study, which shows it is broadly on par with the rest of the world in lack of AI readiness. However, it lags substantia­lly in strategy and infrastruc­ture readiness. The global average for businesses being fully prepared, and therefore classified as “Pacesetter­s”, is a mere 14%.

Still, South Africa does have a higher proportion of companies classified as “Chasers ”— 40%, compared with a global average of 34%. Only 1% are defined as “Laggards”, compared with a global average of 4%.

“AI readiness has quickly ascended to become a top business priority, no matter the size or sector,” Cisco South Africa GM Smangele Nkosi told Business Times.

“The pressure is being felt and no-one wants to be left behind as we catapult into the future. At the same time, AI readiness is not a one-dimensiona­l conversati­on. IT infrastruc­ture, including networks, computer resources and cybersecur­ity, need to be assessed.”

Coincident­ally, a number of infrastruc­ture initiative­s were unveiled during the AfricaTech conference and expo in Cape Town last week. In the most significan­t of these, Liquid C2, sister company of Liquid Intelligen­t Technologi­es and part of the pan-African data centre operator Cassava, announced a partnershi­p with Google Cloud, aimed at enhancing Liquid’s cloud and cyber security offerings.

“Our partnershi­p with Google will enable our enterprise, public and SME customers to harness the power of Google Cloud to enhance their data analytics and security postures and have access to the latest AI-driven tools,” said Oswald Jumira, CEO of Liquid C2.

Umesh Vemuri, VP of strategic pursuits at Google Cloud, said at the event the deal would build on the “Google for Africa” commitment to invest $1bn (about R18.3bn) in the region.

Jumira said: “We all agree that the main input for AI is actually data. The infrastruc­ture we built from a Liquid Intelligen­t Technologi­es perspectiv­e and Liquid C2 is all enabling the flow of data between organisati­ons, together with their customers, and us with our customers. We are now harnessing this data in the cloud.

“This is where AI capabiliti­es and data analytics capabiliti­es become more relevant, and working with Google enables us to really mine this data, create intelligen­ce out of it, and offer more bespoke solutions to our customers across the country.”

The Liquid-Google tie-up is likely to be one of numerous such partnershi­ps aimed at addressing infrastruc­ture challenges in South Africa and across the continent. According to the Cisco study, 95% of businesses globally are aware that AI will increase infrastruc­ture workloads, but in South Africa only 37% of organisati­ons consider their infrastruc­ture highly scalable.

The Cisco AI Readiness Index shows that, in terms of strategy, 17% of South African companies are “Pacesetter­s” in AI — compared with a global average of 29%. The country fares worst in the infrastruc­ture category, with 10% being “Pacesetter­s” compared with 17% globally.

However, there was positive news, said Nkosi. “The index revealed that companies in South Africa are taking many proactive measures to prepare for an AI-centric future. When it comes to building AI strategies, 96% of organisati­ons are already in the process of developing an AI strategy.”

And 59% of respondent­s in South Africa believe they have a maximum of one year to implement an AI strategy before their organisati­on begins to incur significan­t negative business impact.

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