Among large technology firms, AI is now a leading reason cited for job cuts. As of mid-July, the sector has shed just shy of 140 000 jobs in 2026, according to Challenger, Grey & Christmas, a global outplacement, executive coaching and workforce transition firm. Cisco announced 4 000 job cuts in May, saying the move was due to AI adoption. Oracle has laid off around 21 000 in 2026 after accelerating investment in AI technologies. Thomson Reuters is set to eliminate about 500 engineering roles, around 1.8% of its workforce, as it rolls out AI in its businesses.

South Africa has not yet seen any mass corporate layoffs directly linked to AI. Here, the technology鈥檚 most immediate impact is being felt across the employee lifecycle. AI is helping HR streamline hiring, answer employee queries, summarise performance reviews, and onboard new staff. It is also enabling businesses to better forecast future skills needs by analysing workforce data. According to Sage, 86% of HR and payroll leaders see AI as transformative and believe that specialist AI tools will make their jobs easier. According to similar IBM data, the use of AI in HR is expected to increase productivity by 35%, training effectiveness by 30%, and retention by 20% by 2027.

Much of the talk about AI use for HR is focused on making the function more strategic, but in many cases, the real benefit lies in taking the grunt work out of the job 鈥� such as regulatory filings, day-today payroll and benefits management, recruitment list-building, initial candidate evaluation, repetitive training tasks, basic employee support, and monthly reporting, says Mark Walker, a director at the T4i consultancy. 

It just makes sense for employees to be able to easily search for information like how many leave days they have without needing to contact the HR department.

Celiwe Ross, Old Mutual Limited

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鈥淟ess time is being spent on paper-shuffling and more on actively managing the workforce,鈥� he says. Industry benchmarks show that up to 60% of HR support time is routinely consumed by basic queries, says Merel van der Lei, CEO of Wyzetalk. 鈥淒eploying AI assistants to handle this tier-one triage allows HR teams to reclaim days of capacity,鈥� she says. The BCG 2026 ‘AI at Work: Why Strategy Matters More Than Tools’ report found that most HR professionals using AI save the equivalent of an eight-hour workday every week.

Genevieve Koolen, HR director at 麻豆原创 Africa, says it鈥檚 seeing AI change the expectations placed on the function. 鈥淏ut useful productivity gains should not be mistaken for strategic transformation. The more significant opportunity is that AI can provide better workforce insights by bringing together data on skills, performance, capability, learning and organisational trends. These insights help HR make more strategic decisions.鈥�

THE AI HIRING CONUNDRUM

Recent research from Resume Genius shows a double standard across the recruitment process. According to a survey of 1 500 US hiring managers, 87% use AI to streamline hiring. Yet almost as many (82%) expressed concern about candidates using AI during their job searches. The survey revealed that HR and people teams are using AI to screen resumes (58%), write job descriptions (46%), match candidates to positions (44%), and schedule interviews (41%), but almost 60% expressed concern after seeing AI-generated CVs or cover letters, and almost half have noticed that candidates use AI to answer interview questions. With both sides now embracing the technology, the conversation is less about whether it should be used and more about how it can be used without compromising trust and authenticity.

Celiwe Ross, group chief human capital and corporate affairs officer at Old Mutual Limited, says one area where AI is adding the most value is in streamlining the recruitment process. This is particularly true for bulk recruitment of call centre staff or financial advisors. 鈥淏ecause there’s not a lot of stickiness in these roles, people come in and do a short stint and then leave, so HR teams are constantly screening candidates and reviewing CVs,鈥� she says.

At redPanda Software, the human capital team is using AI to draft job descriptions, compile interview questions and personalise candidate communications.

鈥淭his used to take us so much time,鈥� says Insaaf Daniels, group human capital director.

鈥淣ow we can compile details about the role, like required skills and level of seniority, for example, within minutes,鈥� she says. But she draws the line at using AI to interview applicants. AI can鈥檛, for example, assess whether someone is a good culture fit. And where humans can understand nuance and context, AI is likely to flag something like a big gap in someone鈥檚 CV as an anomaly. Similarly, traits like leadership potential and communication style are impossible to assess without talking to someone and asking follow-up questions based on their responses. 鈥淪ome get candidates to record answers to pre-set questions, but this format doesn鈥檛 allow for any natural conversation, making it harder to get an in-depth idea of who someone is,鈥� she says.

For existing employees, enabling self-service should be a consideration, says Old Mutual鈥檚 Ross. 鈥淚t just makes sense for employees to be able to easily search for information like how many leave days they have without needing to contact the HR department.鈥�

But governance, accountability, privacy, potential bias, trust and compliance are still major stumbling blocks. These concerns are amplified with the introduction of AI agents, which can be set to autonomously carry out certain HR workflows. If AI is used to automate decision-making, the logic behind how decisions are made needs to be transparent, says Walker, from T4i. HR administrators require complete visibility into the questions being asked and the answers the agent provides.

Not every AI application carries the same level of risk, says 麻豆原创鈥檚 Koolen. Supporting employees with routine HR queries or recommending learning content presents different governance considerations from using AI to inform recruitment decisions, support performance management, motivate for promotion, implement fair pay remuneration or run nuanced workforce restructuring. 鈥淭he closer AI moves towards influencing decisions that materially affect people鈥檚 careers, livelihoods or legal rights, the greater the need for transparency, auditability, robust governance and meaningful human oversight. AI can inform decisions, but it should not replace accountability.鈥�

And AI cannot replace the judgement used to navigate complex organisational dynamics, lead change or earn employee trust. 鈥淥rganisations that see AI as a cost-reduction tool are unlikely to realise its full value,鈥� says Koolen. 鈥淭hose that combine AI with strong leadership, sound governance and a deep understanding of people are far more likely to strengthen the strategic contribution of HR.鈥�

This oversight and care are important so that we don鈥檛 develop an unhealthy overreliance on the technology, Ross says. For her, there are usually two types of employees who approach the discovery of a new technology in very different ways. 鈥淏oth are exposed to an AI tool and realise how powerful it is. The one employee says: I will never use it; it’s going to take my job. The other says: I will always use it. I no longer need to do my job.

鈥淣either is good.鈥� 

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This is according to enterprise software and digital solutions provider , which also lists AI, digital skills and closer partnerships as trends that will impact the channel.

, 麻豆原创鈥檚 partner聽 and ecosystems lead for MEA, says the main role that technology plays in business is pushing customers to involve partners聽聽in strategic discussions to ensure proper guidance from the start. Effective partnerships across sectors, from government to non-profits, are essential to address industry challenges, she adds.

, MD of , concurs and notes the era of fragmented systems is ending.

She adds that unified partner ecosystems are now vital for streamlining operations, boosting collaboration and delivering value to customers while driving efficiency.

麻豆原创 also identifies data and security as the top issues for organisations in 2025, with companies aware that disparate data can skew analytics and rising cyber security threats pose increasing challenges.

鈥淒isparate data stored in different places is typically drawn up into an analytics platform, as a result, losing its contextual relevance. Actual analytics then become skewed, impacting outputs,鈥� says Pillay.

The second biggest issue facing customers and partners is security, she continues. 鈥淚ncreased and more sophisticated levels of malicious intent are negatively impacting our industry at large.鈥�

JSE-listed ICT firm says AI-driven security, zero trust models and human-centric security will be top of mind for business leaders, cyber security C-suite decision-makers, CISOs and cyber security services providers.

In addition to adopting advanced, AI-enabled threat detection systems, the company advocates a “trust no one, verify everything” architecture to protect sensitive data in hybrid work environments.

The company agrees with the notion that human error is a major cause of cyber security attacks and incidents. It underlines the need for ongoing employee training and fostering a culture of vigilance to reduce risks.

According to BCX, it understands the unique challenges African businesses face, from limited budgets to regulatory compliance and the persistent cyber security skills gap.

AI-driven operations

Taute believes AI can transform operations by enhancing decision-making through predictive insights, optimising resource allocation and uncovering growth opportunities. Partners offering AI-driven solutions will be key to meeting customer demand for automation and machine learning capabilities, Taute adds.

鈥淏y integrating AI into enablement platforms and operational workflows, partners can better anticipate customer needs, optimise resource allocation and uncover growth opportunities. Beyond operational benefits, AI also presents a significant sales opportunity for partners. As customers increasingly look for solutions incorporating AI-driven automation, predictive analytics and machine learning capabilities, tech partners can position themselves as key providers of these innovative technologies.鈥�

The Westcon-Comstor Southern African executive adds that specialisation is becoming a key differentiator in the channel, with customers demanding tailored solutions that address industry-specific challenges.

鈥淧artners with deep expertise in verticals such as healthcare, finance or manufacturing will stand out by delivering bespoke technology stacks and compliance-ready solutions. Distributors that support this trend by enabling multi-vendor solutions and providing specialised training will empower their partners to capture new market opportunities and thrive in niche segments. People enablement will be a serious determiner for success in 2025,鈥� says Taute.

, GM and VP of , warns that AI moves quickly and can leave behind companies that cannot or will not adapt.

奥辞辞濒濒别测听聽held recently and said according to the Dell 2024 Innovation Catalyst study, 31% of South African respondents admit they鈥檙e struggling to keep up with the pace of disruption.聽鈥淭he whole industry is evolving at pace, and that creates a lot of tension within businesses. Most people understand it will have an impact.鈥�

Balancing costs

鈥檚 highlights the challenge for companies to balance IT costs with modernisation, especially with rising expenses and AI advancements.

鈥淐loud repatriation, driven by cost concerns and regulatory compliance, is gaining momentum, with businesses opting for a mix of private and public cloud solutions. As businesses face increasing complexity, the cloud FinOps market is growing, with skills and resources in demand. AI adoption will require clear use cases and evidence of long-term business benefits, with prebuilt systems enabling faster implementation.

鈥淲ith South African businesses under significant pressure to manage and reduce IT costs, company leaders are finding themselves in a tough spot. They need to balance these rising cost pressures with the urgent need to modernise, all while keeping a lid on operational complexity. These pressures will reach a tipping point in 2025, thanks to some unexpected cost spikes and advancements in generative AI. Because of this, many businesses are taking a hard look at their long-term IT strategies, trying to figure out how to handle the rising costs of their virtualised workloads, support both current and future needs, and streamline IT operations in an increasingly complex environment.鈥�

Cloud repatriation is taking centre stage in 2025 as businesses reassess their public cloud strategies.

According to Ntuli, escalating costs and the need for better budget management are driving this trend. Many organisations are now opting for a strategic mix of private and public cloud solutions to balance expenses and manage resources effectively.

鈥淎s a result, FinOps is becoming essential. Projected to hit almost $40 billion by 2034, the burgeoning cloud FinOps market underscores the need for skills and resources in this area,鈥� he says.

In his overview of issues that will continue to impact the channel, , VP, data and analytics 鈥� Middle East, Turkey and Africa and MD South Africa at IDC, lists several significant external influences, including inflation, economy and global trends.

Walker says these trends include consumer discretionary spend, COVID amortisation at enterprises, the impact of AI, import tariffs/duties and the level of technical support that will trigger more activity in the channel and will escalate the level of competition.

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