Artificial intelligence is becoming part of everyday business, from customer service chatbots to automated marketing and sales tools. But while companies are racing to adopt AI, a much bigger question is emerging: Is all this technology actually making businesses more money?
According to the McKinsey global survey cited in the supplied commentary, 89% of companies regularly use AI in at least one business function, yet only 39% report an earnings impact. Just 6% qualify as high performers.
For South African businesses navigating rising operating costs, tight budgets and increasing pressure to compete, these numbers highlight an important reality: adopting the latest technology is not the same as building a better business.
The Problem With Chasing the AI Hype
There is a familiar pattern in the digital world. A new tool arrives, everyone starts talking about it, and businesses rush to sign up before establishing what they actually need it to do.
AI is experiencing that same cycle.
The temptation to automate everything can lead companies to invest in expensive platforms without understanding their capabilities, running costs or suitability for the task. A sophisticated AI system might look impressive, but if a simpler solution could achieve the same result, the additional expense may be difficult to justify.
The real starting point is the business problem, not the technology.
Whether a company wants to improve customer service, generate leads, reduce administrative work or increase sales, it needs a clear objective before choosing an AI solution.
Without that clarity, even the most advanced tools risk becoming another monthly subscription that looks good on a company expense sheet but delivers little measurable value.
Why Successful AI Adoption Starts With People
One of the most significant insights in the supplied commentary is the difference between adding AI to an existing process and redesigning the process itself.
The commentary describes a sales development system built for contact centres that uses AI to analyse sales calls against transcripts from top-performing representatives. Instead of relying solely on periodic training workshops, salespeople receive specific feedback after every call.
The approach shifts professional development from an occasional event to a continuous learning process.
The reported results from an 18-month engagement were encouraging: conversion rates increased significantly, with improvements across the broader sales team rather than only among its strongest performers. The client and exact figures remain confidential.
That distinction matters. When technology helps more employees improve their performance incrementally, the overall business impact can extend well beyond the achievements of a few standout individuals.
It also illustrates why simply introducing a chatbot or automating an isolated task may not be enough. The greatest opportunity could lie in changing how people work, learn and make decisions.
What This Means for South African Businesses
For South African entrepreneurs, small businesses and mid-market companies, AI presents an opportunity to compete more efficiently without necessarily building enormous technology departments.
However, accessibility does not eliminate the need for careful planning.
AI tools can carry ongoing costs related to subscriptions, usage, integration and maintenance. Those expenses can become difficult to manage when businesses choose solutions without understanding how frequently they will be used or what measurable benefits they should deliver.
The smarter approach is to start small, identify a specific operational challenge and test whether an AI solution genuinely improves the outcome.
A business struggling with repetitive customer enquiries, for example, might benefit from targeted automation. Another business may achieve greater value by streamlining its reporting process or helping its sales team respond to leads more effectively.
The right solution depends on the problem, the available budget and the results the business needs.
From AI Experimentation to Real Business Growth
The next phase of AI adoption should be less about keeping up with trends and more about making informed decisions.
Before paying for a platform, business owners should ask three questions: What problem am I solving? How will I measure success? And does this tool offer the most practical, cost-effective way to achieve that outcome?
These questions can help separate useful innovation from expensive experimentation.
For South African businesses, the opportunity is not simply to use the same technology as larger global competitors. It is to apply accessible tools intelligently, improve everyday operations and make limited resources work harder.
AI is not a business strategy on its own. The strategy is knowing where technology can make a meaningful difference.
The companies that benefit most may not be those spending the most on artificial intelligence, but those that understand precisely why they need it in the first place.
