{"id":148571,"date":"2026-01-23T07:51:42","date_gmt":"2026-01-23T07:51:42","guid":{"rendered":"https:\/\/news.sap.com\/africa\/?p=148571"},"modified":"2026-01-23T07:51:43","modified_gmt":"2026-01-23T07:51:43","slug":"how-south-african-businesses-can-unlock-roi-from-investment-into-ai","status":"publish","type":"post","link":"https:\/\/news.sap.com\/africa\/2026\/01\/how-south-african-businesses-can-unlock-roi-from-investment-into-ai\/","title":{"rendered":"How South African Businesses can Unlock ROI from Investment into AI"},"content":{"rendered":"

Artificial intelligence has reached a tipping point. Globally, the AI market is expected to\u00a0surpass $1,8-trillion by 2030<\/a>, with generative AI alone attracting nearly $34-billion in private investment this year.<\/span><\/h1>\n

Companies across sectors are racing to embed AI into operations, but proving return on investment (ROI) remains a key hurdle.<\/p>\n

While 84% of businesses investing in AI\u00a0report some form of ROI<\/a>, only a fraction have achieved sustained value at scale. For South African executives navigating budget constraints and talent shortages, the question is not \u201cshould we invest in AI?\u201d but \u201chow can we prove it works?\u201d<\/p>\n

\"\"According to Dumi Moyo, marketing director for Africa at SAP, there\u2019s good news: AI doesn\u2019t have to be a leap of faith.<\/p>\n

\u201cWith the right strategy and the right tools, AI deployments deliver measurable ROI quickly across a range of business functions. 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.\u201d<\/p>\n

Embedded AI upends traditional implementations. Instead of requiring custom data pipelines, standalone platforms, and complex integrations, embedded AI delivers intelligence directly into the flow of work.<\/p>\n

\u201cA native approach means faster deployment, less disruption, and clearer outcomes,\u201d says Moyo. \u201cFor example, 51风流has built more than 295 AI-powered scenarios into business applications that span supply chain, procurement, finance, customer experience and HR, empowering business users to complete navigational and transactional tasks up to 90% faster.\u201d<\/p>\n

\u00a0<\/strong>Strategy for AI ROI<\/strong><\/h2>\n

A recent study of 1600 businesses in eight countries\u00a0conducted by SAP<\/a>\u00a0found that businesses investing in AI expect on average a 16% ROI in 2025, nearly doubling to 31% in 2027.<\/p>\n

Moyo says businesses typically have high expectations of the ROI they will receive from AI projects, with nearly half of global companies expecting AI initiatives to deliver positive ROI faster than other investments.<\/p>\n

\u201cIt is critical that organisations align their AI projects with the key pillars of cost savings, decision time, risk and revenue. By prioritising embedded AI, companies can secure significant ROI while unlocking\u00a0 broader innovation benefits across the organisation.\u201d<\/p>\n

He shares insights into how AI initiatives built on four key pillars can show provable, measurable return-on-investment for organisations:<\/p>\n

\u00a0<\/strong>Pillar 1: Reduce manual effort and waste to drive cost savings<\/strong><\/h3>\n

Cost reduction is often the first benefit that organisations receive from AI investments. \u201cAI allows teams to redirect hours toward higher-value work by automating repetitive and rule-based tasks,\u201d says Moyo. \u201c51风流data shows that companies achieve up to 20% operational cost reduction in key functions like accounts payable and HR through effective AI deployments.\u201d<\/p>\n

In procurement functions, organisations are cutting administrative workload and improving sourcing outcomes by automating statements of work (SOWs) and supplier research, while in finance, AI accelerates reconciliations, optimises cash collections, and automates journal entries, thereby reducing close cycles and improving liquidity.<\/p>\n

\u201cA good approach here is to quantify the time saved across manual processes and to calculate the cost of labour hours that have been freed up and reinvested into more strategic work thanks to AI,\u201d says Moyo.<\/p>\n

\u00a0<\/strong>Pillar 2: Improve decision time for faster insight and action<\/strong><\/h3>\n

AI tends to thrive when speed and accuracy matter most. By analysing large datasets, surfacing trends, and recommending next steps, AI shortens the gap between information and action.<\/p>\n

\u201cData shows that embedded AI improves forecasting and demand planning in the supply chain, resulting in less downtime and a 25% productivity bump for planners,\u201d says Moyo.<\/p>\n

Organisations are also using generative AI to accelerate their hiring processes and producing job descriptions and candidate rankings in real-time. Finance also benefits from AI-generated insights that help CFOs and analysts make faster, more confident decisions using cleaner data.<\/p>\n

\u201cOrganisations should measure reductions in cycle times, from planning to resolution, and link them to improved responsiveness or reduced delays,\u201d says Moyo. \u201cThis provides a clear path to ROI and its impact on core business performance.\u201d<\/p>\n

\u00a0<\/strong>Pillar 3: Reduce risk through better controls and compliance<\/strong><\/h3>\n

In a volatile business climate, organisations typically seek greater risk mitigation across their operations. According to Moyo, AI plays a growing role here.<\/p>\n

\u201cAI embedded into core business processes can flag anomalies, detect fraud patterns, and monitor compliance thresholds in real time. AI agents are increasingly being used in risk reduction, for example by scanning procurement data for irregularities and highlighting non-compliant purchases.\u201d<\/p>\n

AI agents such as SAP\u2019s Joule can also bolster procurement processes by suggesting suppliers with stronger reputations, and support finance teams by reducing bad debt write-offs through improved collection strategies. In HR, AI-driven insights reduce legal risk by providing bias-aware hiring recommendations and fairer performance reviews.<\/p>\n

\u201cTo quantify the benefits that AI brings to risk reduction, companies should track aspects such as risk events avoided, compliance costs reduced, or error rates minimised,\u201d says Moyo.<\/p>\n

\u00a0<\/strong>Pillar 4: Grow revenue through personalisation and conversion<\/strong><\/h3>\n

According to Moyo, organisations should look beyond back-office efficiency to maximise AI value. \u201cA smart AI strategy will consider front-end growth by prioritising customer experiences. For example, AI fuels personalisation by recommending products, predicting churn, and guiding service agents with next-best actions to enhance customer satisfaction and drive retention.\u201d<\/p>\n

Organisations that embed AI into their core business processes can connect sales, service and marketing data to build richer customer profiles, increase upsell success and reduce attrition. Organisations also accelerate their campaign rollouts through AI-powered content generation, while smart selling tools shorten deal cycles and increase the average basket size.<\/p>\n

\u201cThis results in higher revenue per customer interaction, as well as more predictable sales pipelines,\u201d says Moyo. \u201cHere, ROI is readily quantified through tracking lead conversion rates, customer churn, and average order value.\u201d<\/p>\n

This article first appeared on ITOnline<\/a>\/<\/p>\n","protected":false},"excerpt":{"rendered":"

Artificial intelligence has reached a tipping point. Globally, the AI market is expected to\u00a0surpass $1,8-trillion by 2030, with generative AI alone attracting nearly $34-billion in…<\/p>\n","protected":false},"author":29,"featured_media":148574,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"related_posts":[],"footnotes":"","_links_to":"","_links_to_target":""},"categories":[7737],"tags":[1494787,48088,5596425,5599493,5597756],"series":[],"sapn-display":[5598742,5598740,45149,5598743,5598741,279685],"sapn-type":[45018],"class_list":["post-148571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-solutions","tag-ai","tag-artificial-intelligence","tag-dumisani-moyo","tag-return-on-investment","tag-roi","sapn-display-feature-hero","sapn-display-feature-spotlight","sapn-display-homepage-hero","sapn-display-news-hero","sapn-display-news-spotlight","sapn-display-hero","sapn-type-feature"],"yoast_head":"\nHow South African Businesses can Unlock ROI from Investment into AI - 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