AI market will reach $826 billion by 2030 – SAP
A global leader in enterprise applications and business AI, SAP, has disclosed that by 2030, the Artificial Intelligence market will reach $826bn.
This was disclosed at the SAP Innovation Day in Johannesburg where discussions on how businesses can shift away from stagnation and ignite a new wave of innovation and growth to drive their success.
Speaking at the event, the Chief Business Officer for EMEA, SAP, Hans-Peter Fuelle, said businesses today operated in an environment characterised by volatility and uncertainty, with unpredictability exerting significant pressure on revenue, profit margins, and supply chains.
She said, “Interest in artificial intelligence (AI) is at an all-time high. The global AI market is expected to grow from $184bn in 2024 to $826bn by 2030.”
In her opening remarks, SAP Southern Africa Managing Director, Kholiwe Makhohliso said the vital question for African enterprises was how can there be a transition from merely keeping the lights on to building a competitive edge, despite economic headwinds.
She answered, “By investing in continuous innovation that leverages technologies such as AI and cloud, organisations can drive sustainable business growth, optimise and connect end-to-end processes, leverage data for valuable insights, and stay ahead of competitors.”
Makhohliso noted that the excitement for AI among African enterprises stemmed from its potentially transformative impact on all industries.
“Business AI is gaining traction throughout the continent thanks to a growing list of practical applications that help companies solve challenges, accelerate innovation, and drive greater efficiency.
“With the support of a vibrant ecosystem of expert partners and the growing maturity of cloud and business AI solutions, African enterprises can then supercharge their innovation efforts like never before,” she added.
Meanwhile, SAP Business Group Lead at Accenture, Bertrin Pekeur, said the challenging global economy, inflationary pressures, and depressed revenues have put African enterprises under significant pressure.
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“As a result, enterprises are turning their focus to how technologies such as AI and cloud can help them overcome challenges and increase the rate of innovation. The rapid adoption of AI is creating unprecedented opportunities in digital literacy, the creation of new products, improvements to services, and greater productivity.
“This is helping African organisations transform how they do business, how they interact with their employees, and how they engage with customers.
“Innovation has become essential to the survival of businesses as the accelerating impact of disruptive forces such as technology, climate change, geopolitical upheaval, and economic headwinds lead to constrained growth and uncertainty. “
She stated that according to Accenture Technology Vision, 93 per cent of executives agreed that with rapid technological advancements, it was more important for organisation to innovate with purpose.
The Senior Manager of Solution Consulting at OpenText Africa, Thabiso Hlatshwayo, added that innovation unlocked a world of possibilities for African enterprises and allowed them to compete on the global stage.
“Africa typically doesn’t have access to the same resources as more developed markets and often lags in its adoption of new technologies.
“Enter innovation, which levels the playing field. From agriculture to healthcare, technology-driven innovation is solving challenges unique to Africa and delivering solutions that can be exported to the rest of the world.”
Speaking on cloud, clean core driving AI value, Makhohliso highlighted the vital role digital transformation and cloud adoption played in enabling enterprises to unlock the full benefits of their AI investments.
“Organisations that improve and automate their business processes in the cloud and achieve a clean core can more easily draw on a single source of truth for their business data.
“This enhances the value they generate from their business AI deployments by ensuring all AI outcomes are based on accurate, real-time business data from across the enterprise, enabling organisations to drive limitless innovation, efficiency, and growth.”
She further noted that SAP customers have an edge over their peers in their AI efforts.
Makhohliso advised, “Companies that leverage SAP S/4HANA Cloud integrated with our Business Technology Platform have a strong foundation for AI-driven innovation.
“By following global best practices and drawing on the expertise and skills of our vibrant partner ecosystem, African enterprises can accelerate their AI-driven efficiency and automation gains while unlocking new capabilities that will support their success for years to come.”
