2026 will see South African businesses shift gears on AI integration

 As businesses in South Africa prepare for 2026, leaders across the ICT landscape predict a pivotal shift from AI awareness to AI execution.

The past year has served as a proving ground, where the initial hype around artificial intelligence gave way to a more pragmatic approach focused on tangible returns on investment and efficiency.

“For many companies, 2025 was the year reality hit,” says Daniel Fabre, marketing lead at Jem HR.

“While larger enterprises struggled to incorporate AI into their operations, agile organisations approached this technology like a muscle to develop.” He highlights that the firms that excelled were those that embraced swift adaptation and learning.

The end of the hype cycle

This sense of urgency is echoed by Cliff de Wit, chief innovation officer at Accelera Digital Group.

He notes that businesses have entered a phase of discernment, moving away from broad experimentation with AI towards more targeted and practical applications.

“It’s no longer sufficient to merely have an AI strategy; companies are demanding solutions that address specific challenges and add real value,” De Wit adds.

Mid-tier businesses and the outsourcing shift

The rapid pace of technological advancement created an overwhelming environment for mid-tier companies, according to Craig Freer, director at Qwerti.

“Organisations found themselves trying to manage various systems amid escalating change, with hardware lifecycles and compliance demands intensifying.”

Freer anticipates a significant trend toward outsourcing for IT and cybersecurity management as these businesses seek cost-effective and secure solutions.

“In 2026, we may see a massive shift as more organisations adopt outsourced models to ensure they remain agile and secure, especially as cyber threats evolve,” Freer notes.

Financial caution amidst change

The landscape of financial caution loomed large over businesses throughout 2025.

Evan Berger, director at Go Rentals, pointed out that factors such as a volatile exchange rate led many firms to hesitate in committing capital for long-term investments.

As AI-driven shifts continue, businesses are likely to extend their hardware refresh cycles, adapting to the growing demands of new technologies.

The great clean-out of 2026

Attention turned toward the challenge of managing outdated equipment in 2025.

Clayton Heldsinger, director at Dispose-IT, states that many organisations now confront the necessity of upgrading old hardware as AI workloads intensify. “2026 is poised to be a year of significant clean-outs,” he warns, explaining that firms are increasingly aware of data security risks associated with equipment disposals.

Efficiency vs. customer experience

Amid the drive for efficiency, Nic Laschinger, technology director at Euphoria Telecom, raises a crucial warning.

He believes that the rush to implement AI tools could inadvertently harm customer relationships.

“Businesses need to remain mindful of how these changes affect customer experiences,” says Laschinger, pointing out that many struggle to manage multiple communication channels effectively.

Shifting towards specificity and workforce enhancement

To avoid potential pitfalls, companies are expected to favour tailored, intelligent AI agents trained on in-house datasets over generic vendor solutions.

“The ceiling of standard vendor tools is becoming evident, and organisations will benefit from developing agents specifically for their needs,” De Wit suggests.

Furthermore, Fabre foresees an emphasis on AI tools that improve workforce productivity, especially for deskless workers.

He notes, “In 2026, AI implementation will transform from a buzzword into a critical performance indicator, activating tools that genuinely enhance productivity and workflow efficiency.”

The convergence of AI and IoT

Lastly, the operational backbone of businesses is anticipated to undergo significant transformation as the convergence of AI and the Internet of Things (IoT) gains momentum.

Peter Walsh, managing director at CommsCloud, emphasises, “2026 will witness organisations expecting their technology stacks to self-optimise, enabling real-time visibility and enhancement of operational workflows.”

He predicts this shift will be crucial for businesses navigating the intricacies of interconnected supply chains across Africa.

With a year of transformative change ahead, the South African business landscape is poised to evolve dramatically, driven by the intelligent integration of AI technology and a focus on operational efficiency.

BUSINESS REPORT