Swift advancements in AI technology spurring increased focus on IT proficiency

Swift advancements in AI technology spurring increased focus on IT proficiency

In a recent report, SAP Africa, the multinational software corporation, has revealed that a significant number of African organizations are embracing career development initiatives with AI specialisation. The report, titled "AI Skills Readiness Revealed," underscores the importance of AI skills development in the digital age and provides practical steps for African organisations to develop an AI-capable workforce.

According to the report, two-thirds of African organisations have introduced career development initiatives with AI specialisation. However, the survey also reveals that reskilling and upskilling employees is a top challenge for many companies. Thirty-eight percent of companies surveyed said reskilling is a top skills-related challenge for them in 2025, and nearly half said the same of upskilling.

The rapid pace of technological advancement necessitates a pragmatic approach that combines long-term and short-term skills development measures. Organisations are facing challenges due to the impact of these changes, with helping employees understand why reskilling is necessary being a top priority. Poor access to AI-ready skills is causing negative impacts among organisations, including failed innovation initiatives, delays completing projects, greater pressure on teams, and an inability to take on new client projects.

The report suggests several practical steps for African organisations to develop an AI-capable workforce. Key recommendations include fast-tracking AI skills development by integrating AI training into employee career development programs and enhancing traditional IT skills alongside emerging AI competencies. Although 94% of organisations provide monthly AI training, the report highlights the need for increased budget allocation toward AI and related skills development, as current investment is below 10% of HR or IT budgets.

Organisations must balance retaining traditional tech talent in cybersecurity and cloud computing while building AI skills to avoid missing growth opportunities. Supporting large-scale reskilling initiatives is also emphasized, given the urgent shortage in AI, cybersecurity, and cloud expertise that threatens monetizing AI-driven growth in Africa.

The report also encourages African organisations to provide continuous, structured AI training with career development opportunities, increase financial commitment to AI skills development, ensure complementary upskilling in cybersecurity and cloud computing, collaborate with funding initiatives and partnerships to scale AI research and innovation, and implement broad reskilling programs to meet the surging demand for diverse tech skills across the continent.

Traditional IT skills such as cloud- and cybersecurity-related competencies remain in high demand, creating a dual challenge for companies to attract and retain traditional tech talent while also building greater AI competencies. AI could contribute $1.5-trillion to Africa’s economy by 2030 if the continent can capture 10% of the global AI market. The report states that all companies surveyed expect the demand for AI skills to increase in 2025, with nearly half anticipating a significant increase.

The implementation of human capital management technologies can help HR teams identify concerns and support employees during this uncertain period of technological advancement. Organisations that fail to invest in skills development will likely find themselves unprepared and unable to leverage new innovations, leading to erosion of competitiveness and significant impacts to the bottom line.

In a previous survey conducted in 2022, a quarter of organisations said they spend more than 15% of their HR or IT budgets on skills development and training, but this year, not a single organisation that formed part of the research spent more than 10%. African organisations should prioritise partnerships with educational institutions and other industry skills development initiatives to address the systemic challenges in equipping youth with work-ready skills.

Partnering with large technology companies can augment organisations' skills base and provide valuable support to AI-led initiatives. Genevieve Koolen, HR Director at SAP Africa, says there is an urgent need for AI-related skills among African companies this year. Organisations should combine longer-term skills development initiatives like reskilling and upskilling with short-term measures to alleviate immediate pressures and create space for more robust skills development.

In summary, the report encourages African organisations to invest in their workforce's AI skills development, collaborate with industry partners, and prioritise the development of work-ready skills among the youth to stay competitive in the digital age.

1. A significant number of African organizations are embracing career development initiatives with AI specialization, as revealed by a recent report entitled "AI Skills Readiness Revealed" by SAP Africa.
2. The report indicates that reskilling and upskilling employees is a top challenge for many African companies, with 38% naming reskilling and nearly half naming upskilling as their top skills-related challenges for 2025.
3. To develop an AI-capable workforce, African organizations are recommended to fast-track AI skills development by integrating AI training into employee career development programs, while also enhancing traditional IT skills.
4. Partnering with large technology companies and educational institutions can help organizations augment their skills base and equip youth with work-ready skills, ensuring their competitiveness in the digital age.

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