Artificial intelligence (AI) has created a new economic divide, and entrepreneurs and South Africa's small, medium, and micro enterprises (SMMEs) on the wrong side of it face irrelevance.
Serial entrepreneur Petro Magos, founder of Magos Media and Venteri Capital, says AI won't replace entrepreneurs – but it will expose those who can't adapt (Image source: © 123rf
123rf)
AI won't replace entrepreneurs – but it will expose those who can't adapt. We're past the point of debating whether to use it. The question now is: will you evolve, or will you disappear?
The new business battlefield
In a country where SMMEs, many founded and run by entrepreneurs, contribute approximately 34% to GDP and employ nearly 60% of the workforce, the stakes couldn't be higher.
Every SMME owner I speak to is asking the same question: 'Was this written by AI?” That uncertainty tells you everything.
We're standing at a crossroads. One path leads to acceleration and competitive advantage. The other leads to irrelevance.
South African businesses that have integrated AI tools report significant productivity gains, but adoption remains dangerously low among entrepreneurial ventures and SMMEs – the very backbone of job creation and economic growth the country desperately needs.
Adapt or die: no middle ground
My message isn't gentle, and it's not meant to be.
The AI cat is out of the bag. You have exactly two choices: ignore it and fall behind, or learn to use it intelligently without sacrificing what makes your business human.
Operating across multiple ventures, I have pressure-tested AI integration in real-world conditions.
It's not replacing creativity.
It's giving us the headspace to interpret, refine, and create work that actually moves people.
The results speak volumes: faster turnaround times, sharper decision-making, and freed-up human capital to tackle high-value strategic work.
Together we build – but build smart
SMMEs are our innovation engine, our job creation machine.
But if we don't equip entrepreneurs with the tools to compete in an AI-enabled world, we're building on sand.
My approach is deliberate: Start slow to go fast. Pilot one process. Learn from it. Iterate. The goal isn't to automate for efficiency's sake – it's to build processes that make you better at what you do.
The real risks – and how to manage them
Let’s not sugarcoat the dangers: data leaks, IP exposure, AI "hallucinations," and team complacency all pose genuine threats.
The biggest risk isn't technical, it's cultural.
If your team stops questioning, they stop thinking. If they stop thinking, innovation dies.
His prescription: clear data policies, restricted uploads for sensitive information, team training, and above all, human oversight.
Pivot or fall behind
For entrepreneurs, the message is clear.
The entrepreneurs who will win the next decade aren't the ones who resist AI or worship it.
They're the ones who test, learn, adapt, and never stop questioning. AI won't replace those people. But it will expose everyone else.
Adaptability is now the ultimate entrepreneurial skill. Those who embrace AI strategically while maintaining their human edge will thrive.
Those who don't will become cautionary tales.
You can't hold onto outdated processes forever.
That's not failure to change – that's choosing extinction. And South Africa's economy can't afford that choice from its most vital business sector.
The divide is real. The choice is urgent.
And together, South African entrepreneurs must build not just for survival, but for dominance in an AI-driven world.
