As we settle into 2026, the conversation around Artificial Intelligence in South African boardrooms is shifting fundamentally. We are moving past the initial phases of prediction and experimentation; AI is now a matter of practice, driven by the dual need of changing business models and the necessity to drive costs out of the business.
Source: Supplied. Rowen Pillai, chief executive officer of Leantechnovations.
For business leaders, the challenge is no longer just about adopting technology, it is about navigating the complex intersection of digital innovation, critical skills shortages, and the ethical management of our most valuable asset: our people.
The paradox talent scarcity amidst abundance
The South African labour market in 2026 presents a paradox. While we grapple with high unemployment, the scarcity of critical skills has intensified. The 2025 Xpatweb Critical Skills Survey revealed that demand for ICT specialists, engineers, and data analysts has grown, with skills shortages in these top sectors intensifying significantly since 2024.
For chief executive officers and HR leaders, the implications are clear. We cannot rely solely on local recruitment. With 84% of large multinationals affirming that international recruitment is essential, we must leverage the Trusted Employer Scheme (TES) to fast-track talent acquisition. However, importing talent is a stopgap. The sustainable solution lies in using AI to unlock internal mobility and potential.
There is a lingering fear that AI will replace the workforce. However, the prevailing view in 2026 is that AI is a general-purpose technology, like electricity, that redefines roles rather than eliminating people. We are seeing a trend where high-volume, low-complexity recruiting is becoming "AI-first" to handle the administrative burden.
Tools like Paradox are reducing time-to-apply by nearly 60%, while platforms like Eightfold AI are enhancing internal mobility by matching employees to opportunities based on skills we didn’t know they had.
But here is my advice to leaders: do not automate without oversight. The emergence of case law, such as Mobley v Workday, serves as a stark warning. If AI algorithms inadvertently discriminate against applicants based on age, race, or disability, the employer, not just the software vendor, can be held liable under South Africa’s Employment Equity Act. We must ensure "human-in-the-loop" systems where AI augments decision-making but humans retain accountability.
South Africa’s regulatory environment has matured. The National Artificial Intelligence Policy Framework, introduced in late 2024, has set the ground rules. It emphasises three non-negotiable pillars: transparency, fairness, and human oversight. Business leaders must ensure their AI strategies align with these pillars and the Protection of Personal Information Act (POPIA). This means:
Employees and candidates must know when they are interacting with AI. We must be able to explain how an algorithm reached a decision regarding hiring or performance management, and we must ensure that the vast amounts of data our AI tools process are governed strictly to protect employee privacy.
The role of Human Resources has evolved from a support function to a strategic power player. In 2026, the one-size-fits-all approach to employee value propositions is dead. We are moving toward personalisation.
AI allows us to tailor benefits, career paths, and learning development to the individual. Just as we use data to understand customers, we must use AI to understand our employees, balancing their short-term needs with long-term financial well-being.
This shift requires HR professionals to be digitally fluent, translating data into systemic change. Perhaps the most critical role for leadership is fostering a culture of continuous learning. Traditional workshops are being replaced by AI-powered adaptive learning systems that customise training in real-time.
We cannot simply hire our way out of the skills gap; we must build the future workforce from within. This requires a shift in mindset. Employees must be encouraged to develop a "digital learning mindset," viewing AI as a personal coach that helps them improve faster.
As leaders, we must prioritise training before rolling out technology, ensuring our people are the masters of the tools we provide. The risk facing South African businesses in 2026 is not disruption by AI, but inertia. Those who delay rethinking their workforce strategies will find themselves locked out of the talent economy.
My advice is to act with "human-centricity" at the core of your strategy. Embrace Industry 5.0 principles where technology supports the well-being of the worker. By combining ethical AI governance with a genuine commitment to developing our people, we can turn South Africa’s unique challenges into a competitive advantage.
The tools are ready. The policy framework is in place. It is now up to us to lead with vision and responsibility.
