SAP, a global leader in enterprise applications and business AI, predicted that by 2030, the artificial intelligence market will generate $826 billion.
This was announced at SAP Innovation Day in Johannesburg, where discussions were held on how businesses can break out of stagnation and spark a new wave of innovation and growth to drive success.
Speaking at the event, Hans-Peter Fühle, Chief Business Officer, EMEA, SAP, said businesses today operate in a volatile and uncertain environment, with unpredictable conditions putting significant pressure on revenues, margins and supply chains.
“Interest in artificial intelligence (AI) has never been higher. The global AI market is expected to grow from $184 billion in 2024 to $826 billion by 2030,” she said.
In his opening remarks, SAP South Africa Managing Director Koliwe Makoliso said a key question for African businesses is how they can move from simply continuing to operate to building competitiveness despite economic headwinds.
She replied: “Investing in continuous innovation powered by technologies like AI and cloud can help organizations drive sustainable business growth, optimize and connect end-to-end processes, and leverage data to gain valuable insights and stay ahead of the competition.”
Makoliso noted that expectations for AI are growing among African companies because of its potential to bring about transformational change across all industries.
“Business AI is gaining traction across the continent as more and more practical applications help companies solve challenges, accelerate innovation and increase efficiency.
“With the support of a vibrant ecosystem of expert partners and increasing maturity of cloud and business AI solutions, African enterprises can accelerate their innovation efforts like never before,” she added.
Meanwhile, Accenture's SAP business group leader Bertolin Pécoul said African businesses were under immense pressure due to a tough global economy, inflationary pressures and falling revenues.
“As a result, businesses are turning to how technologies such as AI and cloud can help them overcome challenges and innovate faster. The rapid adoption of AI is creating unprecedented opportunities in digital literacy, new product development, service improvements and productivity growth.”
“This will enable African organisations to transform the way they do business, interact with their employees and engage with their customers.
“As the impact of disruptive forces such as technology, climate change, geopolitical turmoil and economic headwinds accelerate, limiting growth and increasing uncertainty, innovation has become essential to business survival.”
She noted that according to Accenture Technology Vision, 93 percent of executives agree that rapid technological advances have made it more important for organizations to innovate with purpose.
Thabiso Hlatshwayo, senior manager, solutions consulting, OpenText Africa, added that innovation has opened up endless possibilities for African businesses, enabling them to compete on the global stage.
“Africa generally does not have access to the same resources as more developed markets and is often slower to adopt new technologies.”
“The advent of innovation levels the playing field. From agriculture to healthcare, technology-driven innovation is solving Africa's unique challenges and providing solutions that can be exported globally.”
Speaking about how cloud and a clean core drive the value of AI, Makhohliso highlighted the critical role that digital transformation and cloud adoption play in helping businesses realise the full benefits of their AI investments.
“As organizations improve and automate their business processes in the cloud, enabling a clean core, they can more easily leverage a single source of truth for their business data.
“This ensures that all AI outcomes are based on accurate, real-time business data from across the enterprise, increasing the value generated from business AI adoption and enabling organizations to drive limitless innovation, efficiency and growth.”
She also noted that SAP customers have an advantage over their peers in their AI efforts.
“Companies that leverage SAP S/4HANA Cloud, integrated with our business technology platform, can build a solid foundation for AI-driven innovation,” advises Makolisso.
“By following global best practices and leveraging the expertise and skills of a vibrant partner ecosystem, African businesses can accelerate the benefits of AI-driven efficiency and automation, unlocking new capabilities that will underpin their success for years to come.”
