In the evolving landscape of technology, businesses are continuously innovating to stay competitive. Nedbank Group Chief Information Officer, Ray Naicker, shared his insights on how businesses, particularly small and micro-enterprises, can leverage artificial intelligence (AI) and machine learning to transform and thrive.

Naicker says that technology is advancing faster than ever. He mentions that businesses are now interested in how AI can change the way they operate and interact with customers.

The transformative potential of AI extends beyond business operations to enhancing customer experiences. He adds that it is crucial for small businesses to keep up with the changing world of tech, including early adoption of innovations to remain relevant and competitive.

One significant advantage for businesses today, Naicker notes, is the democratisation of technology through cloud computing and the reduction in the cost of devices.

“Cloud computing serves as a great equaliser,” says Naicker. “This shift means that even small businesses can now access cutting-edge technologies and AI tools without the hefty investment traditionally required.”

Naicker highlights the critical role of ethical AI, emphasising the need for “guard rails” to ensure that AI applications do not perpetuate racial, gender or other biases. “It is essential to include humans in the tech processes, who can apply context and empathy to AI-generated solutions,” he advises.

Naicker says that the broader value of AI lies in the development of crucial insights that go beyond leveraging operational efficiencies and enhancing customer service.

“AI and machine learning are not just about automating tasks but also about providing valuable insights and freeing up human creativity to add personal touches to automated outputs.”

Looking to the future, Naicker is optimistic about the role technology will play in empowering small to medium enterprises (SMEs) adding that these could include a significant reduction in barriers to entry for SMEs. However, reducing the costs of technology and increased access to cloud services will need to be supported by investing in broadband connectivity across Africa – doing so would further enable businesses of all sizes to innovate and grow.

“The future looks bright,” Naicker concludes. “AI, machine learning, and cloud computing are not just tools for large corporations but are increasingly accessible to everyone, levelling the playing field and opening up new possibilities for innovation and growth across the continent.”

The adoption of Cloud Computing by individuals and small businesses is increasing, as it provides scalability, cost-effectiveness, and the ability to innovate at a rapid rate. However, we should note that there are still challenges with Cloud computing, including the affordability of top technical talent, perceived security concerns, ongoing enhancement and integration issues.

The cloud computing market in South Africa is expected to grow at a compound annual growth rate of over 26% between 2023 and 2028, expanding to R113 billion. The use of the cloud by small businesses in South Africa could create 142,000 jobs, reduce carbon emissions by about 4.74-million metric tonnes and reduce cybersecurity incidents by 34.2% by 2030.

The use of AI and Machine Learning supercharges the power of data, providing significant benefits to small businesses, helping them to remain competitive. Analytics and AI empower companies to anticipate, prepare for, and address potential disruptions in their product and service delivery.

The AI market in South Africa is projected to reach R6.9 billion by 2025, driven by increased investment and adoption across industries. About 38% of businesses in South Africa have already implemented AI/ML in some form, and 49% of small businesses plan to try out different AI tools in Q2 of 2024.

By embracing AI and technology, small businesses can not only improve their internal operations but also enhance the experience they offer to their customers, leading to increased satisfaction and loyalty, and ultimately more sustainable profitability.

The adoption of digital financial services by South Africa’s small, medium-sized and microenterprises (SMMEs) can potentially unlock R185.9-billion for the country’s economy by 2030.