ADAM CRAKER: Gen AI is how SA can secure its future

As the world grapples with the transformative potential of generative artificial intelligence (Gen AI), businesses find themselves at the nexus of innovation, efficiency and human capital development. We know all too well that Gen AI has the power to simultaneously enhance skills in various work domains while also dismantling entire skill sets and career paths.

In its Future of Jobs Report 2025 the World Economic Forum predicts a net gain of 78-million jobs by 2030, driven by the creation of 170-million new roles and the displacement of 92-million existing ones — with AI a key disrupter, among other technologies. 

Here in SA, where job creation and economic growth face relentless challenges, we must consider how our growing and young workforce can compete with Gen AI advancements and remote workers globally. If we don’t, entire generations will quickly become bystanders in the tech eclipse and become totally irrelevant in the global economy. 

The opportunity Gen AI offers is something we need to face head-on, because there’s too much at stake to ignore the challenge of creating a significant future for ourselves and our children. And this is not just strong emotion talking. Experts from the International Institute for Management Development (IMD) recently published research in the Harvard Business Review on whether US firms could replace US workers with AI-enhanced talent from regions with lower labour costs, like SA. 

Their research showed that Gen AI makes foreign workers, particularly South Africans, more competitive and interchangeable with US counterparts. This finding should revolutionise hiring strategies worldwide and highlight SA’s unique position in the global remote workforce. Our emerging competitive advantage in the Gen AI landscape, combined with professional excellence, sought-after skills, an ideal location and attractive rates, means we should be nurturing the global business services (GBS) market with great care and a proactive eye on the future. It will be vital for surviving rising tariffs and currency volatility, and a weaker rand makes us even more competitive in the GBS market. 

In the hustle of daily life, business and government risk overlooking our unique offerings. Notwithstanding the unconscionably high unemployment rate, SA boasts a large, diverse workforce, producing skilled professionals across fields such as engineering, law, medicine, finance and marketing. Fluent in English, South Africans have demonstrated an ability to adapt to international standards of communication and professionalism. Our location at the intersection of Western and Eastern time zones allows for a 24-hour work cycle, making real-time collaboration easier than in many other offshore locations. 

Encouragingly, the IMD study found that SA workers, even without Gen AI, displayed high competence, especially in communication and creative problem-solving. When paired with Gen AI these skills were amplified, showing that SA workers can match or surpass their US counterparts in certain tasks. 

Enhancing US domestic productivity through AI should distinguish SA in the global talent pool, but we’re just not making enough headway. Now is the time for government to translate a strategic commitment to investing in digital infrastructure and skills into action. We need to position SA as the top destination for GBS. To do this, we must ensure high-speed internet and cloud services, alongside a business-friendly environment free from excessive red tape. A solid technical and regulatory foundation will facilitate seamless collaboration between global businesses and SA talent, driving innovation and productivity. 

Beyond location and skills, SA consistently offers significantly more competitive rates compared to North America and Europe. According to the UN, SA wages were about five times lower than US wages in 2020, allowing businesses to access high-quality talent at a fraction of the cost. 

Crucially, IMD’s research found that SA workers using Gen AI delivered up to 40% more value for money than their US counterparts, who were paid 50% more. This cost-effectiveness, combined with Gen AI’s ability to enhance productivity, sets the stage for a promising future. It shows that SA workers are not just affordable, but highly efficient and reliable alternatives to domestic talent based in places like the US. 

Global markets are in flux due to rising tariffs, currency fluctuations and other volatilities, which means every leader is rethinking their strategies for managing labour costs and maintaining profitability. For inbound interest, SA professional and remote service businesses have much to offer the world, and locally, agile entrepreneurs can gain by finding the right service niche that connects with the wider world at more cost-effective rates without compromising quality. 

It’s no secret that Gen AI will continue to evolve at an astonishing pace. The need for skilled personnel who can harness its power to optimise responsible and sustainable outcomes has never been more important. Businesses that can strategically incorporate SA into their talent development and recruitment plans will be steps ahead in this competitive global market. Here at home, we need to strengthen the business environment and infrastructure to stay ahead of the curve, ensuring that the Gen AI boom is not a bust for SA and its talent. 

• Craker is CEO of iqbusiness.