by SAVIOUS KWINIKA
JOHANNESBURG, (CAJ News) – ARTIFICIAL intelligence (AI) has moved from experimentation to execution, but for many South African businesses, proving a clear return on investment (ROI) remains the defining challenge.
As global AI spending accelerates — with the market projected to exceed US$1.8 trillion by 2030 and generative AI attracting tens of billions in private capital — local executives are under growing pressure to justify AI investments amid tight budgets and skills shortages.
While global surveys show that 84% of companies investing in AI report some form of ROI, only a smaller share have managed to achieve consistent, scalable value.
According to Systems Applications Products (SAP) Marketing Director for Africa, Dumi Moyo, the solution lies not in pursuing complex standalone AI platforms, but in embedding AI directly into core business systems.
“With the right strategy and the right tools, AI deployments deliver measurable ROI quickly across a range of business functions,” Moyo said.
“One of the most effective ways to get there is by embedding AI directly into business applications, avoiding costly integrations and accelerating time-to-value.”
Embedded AI is reshaping how organisations deploy intelligence. Instead of building separate data pipelines and custom integrations, companies can access AI capabilities directly within existing workflows.
SAP has already integrated more than 295 AI-powered use cases across supply chain, procurement, finance, customer experience and human resources, enabling some tasks to be completed up to 90% faster, according to the company.
A recent SAP study of 1,600 businesses across eight countries found that organisations investing in AI expect an average 16% ROI in 2025, rising to 31% by 2027.
Nearly half of respondents anticipate AI projects delivering positive returns faster than other technology investments.
Moyo said successful AI strategies are built around four measurable pillars: cost savings, faster decision-making, risk reduction and revenue growth.
Cost reduction is often the earliest and most visible benefit.
“AI allows teams to redirect hours toward higher-value work by automating repetitive and rule-based tasks,” he said.
SAP data indicates that companies can achieve up to 20% operational cost reductions in areas such as accounts payable and HR.
In procurement and finance, AI accelerates reconciliations, automates journal entries and improves liquidity management.
AI is also improving decision speed. By analysing large datasets and recommending next actions, embedded AI shortens the time between insight and execution.
“Data shows that embedded AI improves forecasting and demand planning in the supply chain, resulting in less downtime and a 25% productivity increase for planners,” Moyo said.
Generative AI tools are also streamlining recruitment and financial analysis, enabling faster, more confident decisions.
Risk management is another growing application.
“AI embedded into core business processes can flag anomalies, detect fraud patterns and monitor compliance thresholds in real time,” Moyo said.
AI agents are increasingly used to identify procurement irregularities, reduce bad debt and support fairer, bias-aware hiring decisions.
Beyond efficiency, AI is emerging as a revenue driver. Embedded AI enables personalised customer experiences, predictive sales insights and smarter marketing campaigns.
“This results in higher revenue per customer interaction and more predictable sales pipelines,” Moyo said.
For South African businesses, the message is clear: AI ROI is achievable — not through experimentation alone, but through focused, embedded strategies that align technology with measurable business outcomes.
– CAJ News