RIDING THE ARTIFICIAL INTELLIGENCE (AI) WAVE, WHAT IT MEANS FOR KZN

At 6:45 a.m., a Durban commuter receives an alert from an AI-powered traffic system. It has detected an accident ahead, analysed road conditions and rerouted him around congestion. In KwaDukuza, a sugarcane farmer receives an early warning from an AI-enabled crop monitoring service that has spotted a pest outbreak before it spreads. These examples show how AI is moving from concepts to practical tools that can improve daily life, business performance and economic growth.

AI Goes Mainstream

AI has rapidly shifted from experimentation to real-world deployment. According to the EY 2025 Work Reimagined Survey, AI adoption in the workplace has become mainstream, with 88% of employees reporting that they use AI at work. However, only 5% are advanced AI users, highlighting a significant gap between widespread adoption and the realization of AI’s full value. The focus is also changing.

Generative AI tools such as ChatGPT created widespread excitement, but organisations are now asking how to operationalise AI safely and at scale. Gartner has highlighted AI agents, AI-ready data architectures and AI Trust, Risk and Security Management (AI TRiSM) as key trends. The lesson is simple: successful AI depends not only on powerful models, but also on clean data, governance, security and workforce readiness.

South Africa: Strong Adoption, Early Maturity

South Africa has embraced AI quickly. EY research shows that AI adoption has become mainstream in workplaces globally, with employees increasingly using AI to support information gathering, document summarisation, content creation and decision-making. Organisations are applying AI to customer service, fraud detection, administrative automation, operational efficiency and decision support.

However, adoption does not equal maturity. South Africa’s first national AI Maturity Assessment found that seven of eight major industries remain in the early stages of AI maturity. Many organisations are experimenting, but fewer have scaled AI into repeatable enterprise capabilities. This creates an opportunity for South Africa to build an AI model grounded in ethics, inclusion, skills development and sustainable growth.

KZN’s Opportunity

KwaZulu-Natal is increasingly positioning itself as a technology and innovation hub. At the KZN AI Summit held in September 2025, local leaders highlighted AI’s potential to transform agriculture, logistics, finance, education and public services. Riding the artificial intelligence (AI) wave: what it means for KZN

■ A Durban-based business process outsourcing company launched an AI Innovation Lab and committed more than R100m, approximately 10% of annual revenue, to AI development. The focus is on helping employees work better with AI rather than replacing them.

■ One of KZN’s largest retailers is using AI to forecast demand, optimise inventory, personalise customer experiences and strengthen credit decision-making.

■ Sub-Saharan Africa’s largest business shipping terminal, which handles approximately 60% of South Africa’s container traffic, is using AI-driven predictive maintenance and logistics optimisation to reduce congestion, minimise downtime and improve efficiency.

These examples show that AI delivers the most value when it solves specific business problems and keeps people at the centre of the change.

The reality check: AI comes with risk

Despite the hype, AI success is not guaranteed. Gartner reports The Human Dimension While AI will automate certain routine activities, history suggests that technological change tends to transform jobs rather than simply eliminate them. The challenge for KZN businesses is to invest in reskilling and help employees move into higher-value roles where human judgment, creativity, problem-solving and relationship management remain essential. The Rise of AI Assurance that only 28% of AI projects fully achieve their return on-investment objectives and around 20% fail outright.

Even more striking, an MIT study found that approximately 95% of generative AI pilots failed to deliver meaningful business value. The main risks include poor data quality, data poisoning, privacy breaches, bias and discrimination, model drift, overreliance on AI outputs, lack of explainability, cybersecurity vulnerabilities, skills shortages and regulatory uncertainty. These risks matter because AI can influence real decisions: approving credit, prioritising customers, allocating resources, detecting fraud or managing operations. Without proper oversight, organisations may scale errors faster than they scale benefits.

Staying in Control

Successful AI adoption requires the same discipline applied to other critical business risks. Organisations should define clear business objectives, confirm data readiness, establish accountable governance structures, validate models independently, test for bias, monitor outputs continuously and strengthen privacy and cybersecurity controls.

They should also invest in AI literacy so employees understand when to use AI, when to challenge it and when human judgment must override automation. Strong governance does not slow innovation; it creates the confidence needed to scale AI responsibly. When people trust the tools and the controls around them, AI is more likely to deliver efficiency, insight and better decision-making.

The Human Dimension

While AI will automate certain routine activities, history suggests that technological change tends to transform jobs rather than simply eliminate them. The challenge for KZN businesses is to invest in reskilling and help employees move into higher-value roles where human judgment, creativity, problem-solving and relationship management remain essential.

The Rise of AI Assurance

As AI becomes embedded in everyday business operations, organisations need confidence that these systems are reliable, secure and capable of producing trustworthy outcomes. This has led to the emergence of AI assurance services, which assess governance, security, data quality, model performance, regulatory compliance and responsible AI practices. By combining innovation with independent oversight, organisations can maximise AI’s benefits while managing its risks. Trusted AI starts with strong foundations.

EY’s Perspective

AI creates the greatest value when combined with strong talent, culture, learning and governance practices. Rather than replacing people, it is most effective as a partner that enhances productivity, decision making and the quality of work. Long-term AI success depends on developing workforce skills, managing change effectively and implementing responsible governance. EY helps organisations build confidence in their AI adoption by accessing data quality, evaluating AI governance and readiness, supporting compliance obligations and enhancing preparedness for AI-related solutions.

In Summary

AI gives KZN a meaningful opportunity to improve productivity, strengthen key industries, enhance public services and attract investment. The value will not come from technology alone, but rather from clear strategy, capable people, quality data, strong governance and responsible implementation. Organisations that achieve this balance will be best placed to ride the AI wave and help build a smarter, more competitive organisation and market in KwaZulu-Natal.

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