South African firms must prioritise data and security as AI use surges
Dell says 67% of South African companies now use AI, but many lack the data, infrastructure and security needed for scale.
At the Dell Technologies Forum in Johannesburg, senior VP Mohammed Amin warned that South African businesses need data‑centric, security‑first strategies as AI adoption jumps to 67% this year. He said most firms still struggle with outdated data centres, with 48% saying their infrastructure is not ready for production AI workloads.
The Dell Modern Enterprise Readiness Study 2026 found 58% of local firms see security, compliance and privacy as the biggest barrier to scaling AI, while 60% are reluctant to share data with third‑party generative AI tools. Energy costs, cyber‑attack frequency, 600 attacks per hour in South Africa, and a lack of clear AI roadmaps also hinder progress.
Why it matters to your business
For founder‑led companies, AI can boost productivity, but without fast, secure and resilient data the investment will not deliver ROI. Poor infrastructure can also drive up token costs, Dell reports 93% of organisations exceed AI budgets because of token consumption.
Security lapses risk regulatory fines and damage to reputation. With 66% of executives worried about compliance and 44% citing security as the reason for pausing AI projects, ignoring these issues could stall growth and waste capital.
What to do on Monday
- Review your data‑centre readiness, assess storage, server and network capacity against AI workload forecasts.
- Map a security plan that covers data protection, cyber‑recovery and compliance before expanding AI use.
- Consolidate technology partners to a single vendor that can provide integrated AI, security and infrastructure services, simplifying management and improving ROI.
Sources
Reported by itweb.co.za.