South Africa's mining sector is starting to embrace artificial intelligence (AI) as a strategic enabler of productivity and long-term competitiveness, but a shortage of digital skills and weak organisational readiness threaten to slow adoption.
This is according to PwC South Africa's latest report − titled: “Ten insights into 4IR in South African mining 2026: AI: Powering the future” − which draws on interviews with 10 mining CEOs, focus groups with operational managers and industry strategy sessions held with the Minerals Council during 2025.
The report argues that AI is no longer viewed as simply another technology investment. Instead, local mining executives increasingly see it as a business transformation tool capable of improving equipment reliability, strengthening safety, optimising exploration and enabling real-time operational decision-making.
“What we see clearly is that AI is not being viewed as a replacement for people,” says Ian Mackay, associate director, mining transformation, PwC South Africa.
“Mining leaders see it as a way to strengthen human capability, enabling safer operations, better decisions and faster responses in an increasingly complex operating environment. The value emerges when technology and people are designed to work together.”
PwC says successful AI adoption starts in the executive suite, warning that digital transformation cannot be delegated solely to IT departments.
According to the study, 46% of CEOs surveyed rated their organisations' AI strategy as merely "average", while only 23% believed it was well-defined and aligned with business objectives.
The report notes that mining companies must move from experience-driven decision-making towards data-driven operations supported by predictive analytics and continuous monitoring.
Skills obstacle
While AI adoption is gathering momentum globally, the report finds South African mining companies are not yet ready to deploy the technology at scale.
Nearly 70% of mines surveyed rated their AI readiness as poor or very poor, with respondents identifying digital skills shortages rather than technology itself as the primary barrier.
“The industry is transitioning from relying on labour availability towards requiring skills readiness, creating new demand for workers capable of using AI-enabled systems and capturing quality operational data. Rather than replacing employees, most mining leaders believe AI should augment existing jobs.”
One interviewed executive said: "The thinking here is not 'I could have 40% less employees'... this is not necessarily a cost-cutting exercise – it's actually a revenue-generating exercise."
The report calls for significantly greater investment in continuous digital skills development, AI literacy and immersive technologies, such as virtual and augmented reality training.
Data quality paramount
PwC says AI initiatives will fail unless mining companies first establish robust data foundations.
The report found more than 85% of respondents rated their data management capabilities as average or poor, limiting their ability to generate reliable real-time insights across operations.
It warns that many digital transformation projects have failed because technology was implemented without sufficient operational buy-in.
As one CEO observed: "One of the biggest pitfalls is that data doesn't help if it's just data. It needs to be put through the funnel to get to wisdom."
The report argues mining companies should focus less on collecting additional data and more on ensuring the right data reaches the right person at the right time to support operational decisions.
"Ultimately, the success or failure of digital transformation in mining hinges not just on the technology choice itself, but on people, “adds Mackay.
“Change management and buy-in were crucial for the success of technology implementations. When employees were engaged from the start and solutions were aligned with real business needs, implementations thrived. But when change was imposed without support or understanding, even the most advanced systems failed. This was the most common source of failure for digital programmes."
Despite growing interest, AI adoption across the sector remains cautious.
PwC found two-thirds of interviewed CEOs have not yet deployed AI within their businesses, preferring to focus on clearly defined business use cases rather than large-scale transformation.
"All of our respondents have looked at AI in some way, but most have looked at the options and have chosen not to invest as yet. They are very clear about where they will create value (known use cases and efficiencies) and are executing those. As one leader told us: It's also an iterative process as opposed to developing a strategy and that is it.”
The report concludes that SA’s mining industry stands at a crossroads where leadership, skills development and stronger data governance will determine whether AI delivers meaningful value.
"The question is no longer whether AI will transform mining – it is whether South Africa's mining sector will move with sufficient speed and discipline to lead that transformation," the report concludes.
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