SA banks put AI value under the microscope

South African banks are prioritizing artificial intelligence (AI) as a critical component of their digital transformation, with a focus on measurable financial outcomes, according to PwC South Africa's Major Banks Analysis for the first half of 2026. The banks, including Absa, Capitec, FirstRand, Investec, Nedbank, and Standard Bank, are moving beyond technology deployment and digital channel migration to leverage AI for customer relationship building, accelerated decision-making, improved fraud prevention, and cost reduction.

The analysis covers combined local currency results of the six banks, which recorded 9.3% year-on-year growth in headline earnings to R82.3 billion. AI is being integrated into various banking functions, such as fraud management, lending, software development, customer engagement, and employee productivity, with the emphasis on embedding it into existing workflows and decision-making processes.

Banks are refining their strategies for measuring and realizing value from these investments, with a greater emphasis on outcomes like faster service delivery, stronger fraud prevention, improved credit decisions, and lower operating costs. The focus is shifting from the number of AI use cases implemented to the tangible improvements generated in customer outcomes, revenue opportunities, decision-making speed, and sustainable efficiency.

PwC's Yusuf Bismilla emphasizes that the ability to derive value from AI depends on combining technology with deep knowledge of customers and markets, as well as the expertise of people, to enhance decision-making, improve customer outcomes, and strengthen risk management.