By Sudesh Pillay, Executive Head: iStore Business

South African SMEs are moving decisively into the age of artificial intelligence. From automating marketing and customer engagement to streamlining operations and improving decision-making, AI is fast becoming part of everyday business.

According to, 73% of South African small and medium businesses have already invested in AI technologies, while 76% plan further investment. Yet only 47% report that AI is currently delivering meaningful revenue impact. This gap between intent and outcomes signals a fundamental issue: many SMEs are adopting AI faster than their underlying technology foundations can support it. According to Sage’s "Small Business, Big Opportunity" 2024 survey, 73% of South African small and medium businesses have already invested in AI technologies, while 76% plan further investment in the year ahead. Yet only 47% say AI is currently delivering meaningful revenue impact. This gap between ambition and outcomes highlights a growing reality. Many SMEs are adopting AI faster than their underlying technology foundations can support.

In today’s tough economic climate, small businesses are under constant pressure to do more with less. Becoming AI-ready is not just about adding new software. It starts with having the right technology foundations in place.

There is no shortage of enthusiasm for AI in South Africa’s SME sector. Business owners are actively exploring how automation, data insights and intelligent workflows can unlock growth. But beneath this optimism sits a quieter operational challenge. Many SMEs are still operating on outdated hardware, fragmented systems and stretched IT support.

AI workloads demand far more from devices than traditional computing. Real-time data processing, creative production, cloud collaboration, and automation place sustained pressure on performance, security and stability. When these demands are layered onto legacy environments, systems slow down, downtime increases and security risks multiply.

In this context, AI becomes a source of friction rather than a driver of growth.

This is especially concerning given South Africa’s cyber risk environment. Research shows that 43% of local SMEs fall victim to cyberattacks each year, contributing to an estimated R2.2 billion in economic losses. At the same time, organisations in South Africa face over 2,100 cyberattacks per week, with threats becoming more sophisticated and increasingly AI-driven

The next phase of SME growth will be shaped by a convergence of three critical forces: performance, simplicity and security. AI operates at the intersection of all three.

High-performance devices enable faster processing and smoother workflows. Seamless integration reduces friction and complexity. Built-in security protects sensitive data while reducing dependence on costly external solutions.

Together, these elements create a foundation that allows SMEs to deploy AI with confidence, speed and control.

This is where cohesive technology ecosystems become powerful business enablers. Devices and operating systems designed to work together naturally create more stable, secure and intuitive environments. They reduce the need for specialist IT intervention, allowing small teams to focus on what matters most, running and growing their businesses.

Why total cost of ownership matters more than upfront price

In a high-interest-rate, cost-sensitive economy, SMEs understandably focus on purchase price. But as AI adoption accelerates, this mindset needs to shift toward total cost of ownership.

When productivity, downtime, IT support, security incidents, energy efficiency, device lifespan and resale value are factored in, the economics change significantly. Technology that lasts longer, performs consistently and includes built-in productivity and security tools often delivers far greater value over time.

Put simply, cheap technology can quickly become the most expensive decision once operational disruption and replacement cycles are taken into account.

South Africa’s SMEs are navigating rising operating costs, fragile consumer demand and persistent infrastructure challenges. Every technology investment must therefore deliver measurable value.

AI offers powerful potential, but only when supported by strong foundations.

This moment calls for a more deliberate approach to technology strategy. SMEs need to ask whether their current devices and systems are truly capable of supporting automation, AI-driven workflows, secure collaboration, and scalable growth.

Those that invest wisely now will be better positioned to unlock productivity, resilience, and competitiveness in the years ahead.

The race to adopt AI is well underway. But success will not belong to those who move fastest. It will belong to those who build the strongest foundations to sustain long-term impact.

AI readiness is no longer a future ambition. It is a present-day business capability.

For South African SMEs, the path forward is clear. Invest in technology ecosystems that combine performance, simplicity, security and longevity. In doing so, businesses can transform AI from an experimental tool into a powerful engine for sustainable growth.

In the AI economy, devices are no longer just tools. They are strategic business assets.