The impact of Artificial Intelligence on Africa’s economy cannot be overstated—reports suggest that generative AI can add between $110 to $220 billion to Africa’s GDP per annum. To reap the benefits of Artificial Intelligence, businesses in Africa must prioritise equipping employees with the requisite AI skills.

South African businesses increasingly recognise the critical role AI skills will play in the future of work. According to a report by Dell Technologies, 92% of South African businesses view AI as a core part of their corporate strategy. Furthermore, AI is beginning to drive real enterprise value as 32% of organisations report productivity and financial gains from AI. Despite its importance and potential impact, a staggering 94% of companies struggle to embed AI across operations. Consequently, the AI skills corporate training segment represents a significant growth opportunity for aspiring entrepreneurs and established corporate training providers across the country. This article provides entrepreneurs with an overview of the opportunity in South Africa.

Based on our estimate, South Africa’s corporate education and online training market was valued at $1.24 billion in 2025. Industry growth is driven by companies investing in workforce upskilling and reskilling, as skills obsolescence forces continuous learning, not one-off training. Furthermore, according to Ken Research, more 60% of employees seek additional training. Although 55% of companies still prefer in-person training, online learning usage increased by 75% since 2020.

Demand for AI skills is rapidly increasing in South Africa. According to data from Pnet, AI skills demand in South Africa has nearly doubled in five years: AI professionals securing new roles increased by 96% between 2019/20 and 2024/25, with demand up 183% since 2018. This highlights the fact that AI skills are moving from “emerging” to core workforce capability. Furthermore, executives expect 40% of workers to need new skills within the next three years due to AI. High demand exists for: Prompt engineering, Machine learning, Data science & analytics, AI ethics, Python, TensorFlow, PyTorch.

Clear trends are emerging in AI skills demand across industries. According to a PWC report, AI-related job postings in education rose from 4.9% (2021) to 8.5% (2024) — the largest increase across sectors. ICT AI skill demand increased from 5.5% to 7.9% between 2021 and 2024. AI skills demand in agriculture grew from 2.91% to 3.68%, driven by smart farming and sustainability needs. AI skills are required in 5.1% of financial services roles globally, but South Africa’s adoption remains slow. Globally, manufacturing expects a 20% increase in AI-related roles, yet local uptake is limited.

Although AI skills training is viewed as important, training budgets do not reflect such importance. According to a recent SAP AI Skills Readiness report, 68% of organisations in South Africa have implemented AI skills development programmes. Despite 94% of organisations offering monthly training, none allocate more than 10% of HR or IT budgets to skills development. By law, South Africa-based companies are required to allocate 1% of their payroll spend to skills development.

According to the IDCC Skills spend report, some organisations allocate more than 60% of their skills development budgets to non-accredited training to meet immediate business needs. This spend is largely directed toward specialised areas such as digital skills, product and technical knowledge, internal processes and systems, regulatory and compliance training, other technical specialisations, as well as health, wellness, and leadership development.

In South Africa, registered organisations are required to contribute to skills development through a Skills Development Levy (SDL) of 1% of total employee salaries, payable to a registered SETA, once payroll exceeds R500,000 per year. In addition, companies with annual turnover above R50 million are expected to allocate 6% of their HR payroll to skills development under the Generic Skills Development Scorecard. Survey findings show varied spending patterns: 16% of organisations spend less than 1%, between 1–1.9%, or more than 4% of HR payroll on skills development, while 11% spend between 3–4%. Notably, nearly a third of respondents were unsure of their actual spend, although budgeted allocations suggest a growing commitment to increasing investment in skills development.

Spending on accredited training increases significantly with company size. In the previous financial year, small organisations (21-150 employees) spent an average of about R385,000, while medium-sized (151-500 employees) firms invested roughly R1.35 million. Medium-large companies (501-1000 employees) allocated around R2.67 million, large organisations (1001-5000 employees) spent just over R7 million, and very large enterprises (5000+ employees) invested close to R29.3 million in accredited training.

Spending on non-accredited training also rises sharply with company size. In the previous financial year, small businesses spent roughly R352,000 on average, while medium-sized firms invested about R1.24 million. Medium-large organisations allocated around R2.43 million, large companies spent approximately R6.42 million, and very large enterprises invested nearly R26.8 million in non-accredited training.

Demand for AI skills training will be driven by three key factors: the potential AI financial gains, the AI skills gap, and nationwide legislation.

According to reports by Dell & PwC, the major driver behind the demand for AI Skills development is the potential financial rewards due to AI adoption. As stated before, 32% of organisations report productivity and financial gains from AI, highlighting the fact that AI delivers real business value when implemented correctly. The impact of AI on a firm’s performance is far-reaching—AI impacts operations, HR, marketing, finance, and leadership. Furthermore, Industries using AI globally generate 3× more revenue per worker, while workers with AI skills earn 56% higher wages.

In order to reap these benefits, local businesses must address the prevalent skills gap in the workplace due to traditional curricula lagging behind real-world AI skills requirements. Employees also feel that they don’t have the necessary skills to thrive in an AI-driven world: 72% lack knowledge of safe and responsible GenAI implementation. Therefore, it’s no surprise that employees in Africa are eager to improve their AI skills: 66% of employees believe their organisations should introduce more AI skills training initiatives.

South Africa’s National Digital and Future Skills Strategy will also play a significant role in driving demand for AI skills training. The Department of Communications and Digital Technologies’ (DCDT) Digital and Future Skills Strategy aims to create a digitally proficient South African society by launching structured initiatives to address the challenges of rapid technological adoption. It focuses on the integration of 4IR technologies—such as artificial intelligence, robotics, and cloud computing—within the broader context of scientific and biotechnological innovation. Ultimately, the framework seeks to empower individuals and communities to navigate and thrive in an increasingly digital and interconnected global economy.