SA urged to focus on data, security-centric strategies as AI advances at pace

South African business executives require operational strategies centered around data and security as agentic AI adoption surges, according to technology experts speaking at the Dell Technologies Forum Johannesburg 2026. Mohammed Amin, senior VP for Central and Eastern Europe, the Middle East, Türkiye and Africa at Dell Technologies, highlighted that organizations must upgrade infrastructure, particularly data centers, to handle rising AI workloads and confront adoption obstacles.

While AI implementation has grown from 42% to 67% among South African firms in the past year, challenges persist. Amin cited figures revealing that 24% of CIOs and CEOs struggle to keep up with disruption, 32% lack a roadmap for AI, data, and security innovation, and 48% believe their current data center setup isn't prepared for intensive AI tasks.

Business leaders must also grapple with AI-related budgets, energy supply concerns, cybersecurity, and data readiness. Amin emphasized that data readiness, characterized by fast, secure, resilient, and flexible data, is crucial for successful AI implementation. Security, compliance, and privacy emerged as the primary barriers to scaling AI, with 58% of South African firms viewing these as the greatest challenges.

Additionally, 60% of organizations worry that their data and intellectual property are too valuable to share with third-party generative AI tools. Cybersecurity is also a significant concern as AI usage expands. Dell Technologies' Modern Enterprise Readiness Study 2026, conducted with Vanson Bourne, found that 90% of respondents expect security to be part of every proposal from a strategic technology partner.

The study also revealed that 92% consider integrated data protection and cyber-recovery capabilities essential when selecting storage and server platforms. Dell estimates that AI infrastructure could reach a $1 trillion market opportunity by 2030, driven by escalating demand for AI inference and the token economy. Tokens, text, code, or data processed by AI models, have seen demand surge 320-fold in 2026, yet 93% of organizations globally are exceeding their AI budgets due to token consumption.

Dell advises organizations to choose suitable use cases, models, and infrastructure locations to enhance the chances of successful AI deployment. Four trends shaping enterprise technology investment and AI adoption in SA were identified, including economic pressure influencing technology spending, businesses placing greater emphasis on costs, efficiency, and business outcomes, and a preference for consolidating technology services.