South African business leaders need to develop operational strategies centred on data and security as the adoption of agentic AI increases, boards demand ROI and organisations report mixed results from AI pilots. This was the message from technology professionals addressing delegates at the Dell Technologies Forum Johannesburg 2026 in Kyalami this week.
Mohammed Amin, senior VP for Central and Eastern Europe, the Middle East, Türkiye and Africa at Dell Technologies, said agentic AI will play a growing role in the workplace. Organisations need to modernise infrastructure, particularly data centres, to accommodate growing AI workloads and address adoption challenges, he said.
AI adoption among South African organisations has risen from 42% a year ago to 67% in 2026, according to Amin. However, the pace of technological change and the lack of clear strategies remain challenges.
He cited figures showing that 24% of CIOs and CEOs struggle to keep pace with disruption; 32% of organisations lack an innovation roadmap covering AI, data and security; and 48% do not believe their current data centre infrastructure is ready for demanding AI workloads.
Business leaders also face challenges involving AI-related budgets, energy supply, cyber security and data readiness, according to Dell Technologies.
Amin said data readiness meant having data that is fast, secure, resilient and flexible. “Data is the differentiator,” he said. “Data readiness is key to successful AI implementation.”
He added that 58% of South African organisations regard security, compliance and privacy as the biggest barriers to scaling AI, while 60% say their data and intellectual property are too valuable to share with third-party generative AI tools.
Cyber security is another concern as organisations expand their use of AI. “There are 600 cyber attacks every hour in South Africa,” said Amin, adding that Dell had cited research projecting global ransomware damages would exceed $200 billion by 2030.
According to Dell Technologies' Modern Enterprise Readiness Study 2026, conducted with independent research firm Vanson Bourne in June 2026 and based on feedback from 2 950 respondents across 35 countries, 90% of respondents expect security to be included in every proposal from a strategic technology partner.
It also found that 92% consider integrated data protection and cyber-recovery capabilities important criteria when selecting storage and server platforms.
Dell said organisations increasingly expect security to be incorporated across infrastructure, devices, AI environments and engagements with technology partners, rather than treated as a separate technology decision.
The study also found that 94% of respondents expect their use of managed security services to increase over the next two to three years.
Token economy
Dell Technologies estimates that AI infrastructure could represent a $1 trillion market opportunity by 2030, driven by growing demand for AI inference and the so-called token economy.
Tokens are units of text, code or data processed by AI models. Dell said 93% of organisations globally were exceeding their AI budgets because of token consumption.
Dell executives said AI token prices had fallen 80% year on year in 2026, while token use had increased 320-fold. According to Dell, on-premises infrastructure and data optimisation can reduce spending associated with token consumption.
Amin stressed the need for organisations to select appropriate use cases, models and infrastructure locations to improve the prospects of successful AI implementation.
Four trends shaping enterprise technology investment
Dell identified four trends shaping enterprise technology investment and AI adoption in SA:
Economic pressure influences technology spending
Economic uncertainty continues to influence technology investment decisions in SA. Organisations are placing greater emphasis on costs, efficiency and business outcomes when deciding where to spend.
The study found 84% of South African business leaders said macroeconomic conditions were making them more selective and focused on outcomes when investing in technology.
This is contributing to a preference for consolidating technology services: 82% said they would prefer to consolidate more of their technology requirements with a single strategic partner, where possible.
The study also found 92% were shifting spending towards partners with the scale, ecosystems and supply chain capabilities to support AI and modernisation projects beyond the pilot stage.
The findings indicate a move towards fewer, more consolidated technology arrangements, with organisations seeking to simplify operations and measure ROI.
Workplace technology and AI readiness
As AI becomes more widely used in workplace processes, the technology employees use is becoming an important consideration in adoption plans.
The study found 96% of South African respondents believe modern devices improve collaboration and meeting quality, while 86% said outdated or underpowered devices limit their ability to adopt new tools, including AI-enabled applications.
It also showed 96% of South African business leaders believe modern AI-enabled PCs and devices will play an important role in their organisations' future strategies.
For organisations, upgrading workplace technology is increasingly linked to their ability to support AI applications, improve employee productivity and strengthen endpoint security.
AI adoption advances, but scaling remains a challenge
AI adoption is increasing in SA, but organisations face challenges in moving from pilot projects to wider deployment.
Security, compliance and privacy are among the main concerns as organisations navigate regulatory requirements and scrutiny over data use.
The study found 66% of South African business leaders were concerned about complying with government regulations when using their data for AI. A further 44% said security and compliance concerns were the main reasons their organisations had slowed or paused AI adoption.
Data sovereignty influences decisions about where AI systems are deployed
For sensitive data and AI models, 34% of South African respondents said these must remain within their country or region on infrastructure they own or directly control. Another 16% said they would accept a sovereign or local cloud operated by a trusted regional provider.
Infrastructure readiness remains a challenge: 48% of South African business leaders said their data centres and infrastructure were not fully prepared to support demanding workloads at production scale, including AI and analytics.
The findings suggest organisations moving beyond AI experimentation face challenges involving infrastructure, data management, security, governance and regulatory compliance.
Habib Mahakian, VP for southern and sub-Saharan Africa at Dell Technologies, said: “The South African findings show that organisations are moving beyond AI experimentation and becoming much more focused on how they can scale AI securely and turn investment into measurable business value. At the same time, they are recognising that AI readiness depends on the foundations underneath it, from modern infrastructure and AI-capable devices to trusted data, strong security and the right technology partners.
“What stands out is that South African leaders are not simply looking for more technology; they are looking for greater simplicity, resilience and accountability from their technology partners. As organisations navigate economic pressure, evolving regulation and the growing demands of AI, building these foundations will be critical to turning AI ambition into lasting business advantage.”
Dell said it expects more computing and data processing to take place at the edge rather than in centralised facilities. The company expects this shift to influence how organisations operate and make business decisions by 2030.
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