Hewlett Packard Enterprise’s recent Innovation Day set out to challenge the status quo around AI, says President Ntuli, Managing Director of HPE South Africa.

With global investments in generative artificial intelligence (GenAI) expected to increase by 60% over the next three years, the excitement surrounding AI is still undeniably strong. And for good reason. AI is poised to surpass the impact of any previous technology, transforming every business and industry while addressing some of the most significant challenges of our time. However, while basking in the possibilities, it can be easy to overlook the fact that AI is merely a tool to achieve extraordinary objectives, not the objective in itself.  

Although 75% of executives worldwide, including those in South Africa, consider AI a strategic priority, a significant 60% fail to establish or monitor financial KPIs related to AI value creation. This gap arises because AI projects are often viewed in isolation, rather than as integral components of the organisation's broader business objectives. Consequently, many AI initiatives struggle to gain traction, as businesses find it challenging to assess their return on investment (ROI). Frequently, AI is implemented from a technological standpoint, but the IT director or CIO is unable to clearly articulate the actual benefits to the business.  

The problem with prioritising technology over preparation

In many cases, the rush to implement AI leads to prioritising technology over preparation, in other words placing the proverbial cart before the horse. Often organisations in South Africa lack a clear data policy, a cloud strategy, or even a comprehensive IT strategy. Additionally, the absence of a stable and robust infrastructure presents significant challenges. To transition AI initiatives from pilot to production effectively, it is crucial to acknowledge and address key prerequisites from the outset.

To scale AI successfully, organisations need strong data infrastructure, capabilities, and governance. AI initiatives rely on high-quality, often company-specific data. A hybrid by design approach, integrating edge-to-cloud, reduces latency and enhances data control. It is essential to align your AI strategy and existing processes like data lifecycle management, security, and operational planning with each other. Without this foundation, AI projects often fail to move beyond pilot stages. A strategic approach ensures an AI application's potential is fully realised, driving meaningful business outcomes and innovation.

These critical issues were the focus of Hewlett Packard Enterprise (HPE) Innovation Day. We assembled a lineup of leading organisations to showcase impactful AI implementations. By bringing together both global and local AI leaders to share insights and strategies, our goal was to create a collaborative platform where participants could build robust AI business cases that also address the unique challenges and opportunities of developing digital economies, particularly in Africa. Ultimately, our objective is to help businesses determine the true return on investment for AI and drive innovation.

Demystifying the implementation and outcomes of AI

At the same time, we set out to demystify AI and challenge problematic misconceptions around the technology.

When discussing AI today, many businesses think solely of Large Language Models (LLMs) like ChatGPT. Yes, AI can revolutionise collaboration, optimising supplier and vendor relationships, enhancing inter-company efficiency and creating elevated customer experiences. However, the current focus is too narrow, and it's time to broaden our perspective and articulate the broader benefits AI can bring to South African organisations.

AI also needs to be demystified in terms of its perceived complexity and cost. Organisations can begin with small, impactful projects and scale as they achieve success, but it is crucial to start with a clear strategy linked to tangible business outcomes. These first steps are always the hardest, especially for those lacking the knowhow and in-house talent. This is where vendors and the channel can support, providing expertise and supporting organisations throughout their journey. HPE for example created AI transformation workshops to enable customers, helping them link AI initiatives directly to their business objectives.

With the right guidance, organisations can leverage their existing resources to harness the power of AI. Instead of a complete overhaul, HPE advocates for a strategic integration of AI into current infrastructure and applications. This approach ensures seamless adoption, avoids unnecessary costs and maximizes growth opportunities.

Organisations looking to adopt AI can benefit from leveraging turnkey, integrated solutions that support a quick and seamless adoption, rather than starting from scratch. These solutions allow businesses to focus their resources on developing new AI use cases, simplifying a project that could take months to deploy, and gradually expand their AI capabilities. By using these established resources, companies can accelerate their AI journey, boosting their productivity and unlocking new revenue streams.

South Africa is at a pivotal moment, with a unique chance to observe and learn from the global AI boom, taking note of both achievements and setbacks. By adapting best practices, while clearly assessing the actual needs in the region and finding local solutions to local issues, we can avoid costly mistakes across economic, environmental, and social dimensions. Adopting a strategic, reflective approach, South African companies have the potential to leapfrog their global counterparts.