Generative AI is no longer a future concept or a speculative technology. It is here now, rapidly reshaping industries and rewriting the rules of competitiveness.

By Ntsako Baloyi, senior manager in the technology business at Accenture, Africa

In South Africa, the potential for generative AI to drive inclusive economic growth, boost productivity, and unleash entrepreneurial innovation is enormous. However, to realise this potential, we must confront a critical and growing challenge: the skills gap.

Without a workforce that understands how to leverage, manage, and innovate with generative AI, South Africa risks being left behind in a technology revolution that is already accelerating globally.

The time to act is now. South Africa urgently needs a coordinated national strategy to build generative AI skills at every level of society. Businesses must take the lead in upskilling employees, while educational institutions must modernise curricula to include AI literacy as a core competency.

Government must foster enabling policies and incentives that support continuous skills development. South Africans cannot afford to wait for global trends to pass us by. We must equip our people with the tools and knowledge needed to shape, rather than merely react to, the AI future.

The skills needed are broad and varied. Beyond data science and machine learning expertise, there is growing demand for prompt engineering, model fine-tuning, AI system auditing, ethical risk management, and AI governance capabilities.

Importantly, non-technical skills such as critical thinking, creativity, and problem-solving are becoming even more valuable in an AI-augmented economy. Organisations must therefore adopt a holistic approach, nurturing both hard technical skills and the human skills that make AI collaboration productive and responsible.

At present, South Africa’s AI skills pipeline remains alarmingly thin. According to numerous studies, the country is producing fewer AI specialists per capita than many of its emerging market peers. This shortage is compounded by the global demand for AI talent, leading to a brain drain that sees many of our brightest minds leaving for opportunities abroad.

If we fail to address this, South Africa will find itself trapped as a consumer of AI technologies developed elsewhere, rather than a creator and innovator.

Companies that wait for fully trained talent to appear on the market will fall behind. Instead, leading organisations are building internal AI academies, running targeted bootcamps, partnering with universities, and encouraging cross-functional learning.

By identifying business areas where generative AI can have an immediate impact and investing in training employees to use these tools effectively, businesses can unlock new efficiencies and innovations while building long-term capability.

Educational reform is equally critical. South African universities and technical colleges must ensure that AI literacy is introduced across all disciplines, not only within computer science faculties.

Future lawyers, marketers, doctors, engineers, and public administrators will all need to understand the basics of how AI works, its limitations, and its ethical implications. Schools should also begin teaching foundational concepts in AI from an earlier age, normalising a generation of students who view AI as an everyday tool rather than an intimidating mystery.

An interesting trend emerging in the country is the production of educational content for young children, targeting 4IR related skills such as AI and cybersecurity to ensure that children are intentionally prepared from a young age for the AI driven economy.

Moreover, generative AI offers an opportunity to democratise access to economic opportunity if skills development is inclusive. South Africa must ensure that rural communities, township entrepreneurs, and historically disadvantaged groups are not left behind. Public-private partnerships, mobile learning platforms, and community-driven upskilling initiatives will be essential to bridging the urban-rural digital divide.

Government has a key role to play in creating an enabling environment. Tax incentives for businesses that invest in AI training, grants for research and development, and funding for AI centres of excellence are all tools that can accelerate South Africa’s transition into a generative AI-enabled economy. Clear regulatory frameworks that address data privacy, model accountability, and AI ethics will further encourage responsible innovation.

The benefits of investing in AI skills are tangible. Companies that upskill employees in generative AI are seeing faster innovation cycles, improved customer experiences, and better decision-making. On a national level, closing the AI skills gap can drive GDP growth, reduce unemployment, and position South Africa as a regional leader in the digital economy.

This need is more accentuated now than ever as South Africa is growingly being seen as a preferred outsourcing destination by global first world economies.

Conversely, the costs of inaction are steep. Countries that fail to build AI skills risk losing competitiveness, widening inequality, and becoming increasingly dependent on imported technologies that may not align with their societal values or needs.

South Africa has a proud tradition of resilience, adaptability, and innovation. We have navigated seismic economic and technological changes before, from the rise of mobile telecommunications to the growth of fintech. We can do it again with generative AI, but only if we invest decisively in our most valuable asset our people.

The generative AI revolution is already underway. South Africa’s opportunity is not just to participate, but to lead. By closing the skills gap, we can turn AI from a distant technological trend into a tool that empowers every South African to shape their future.