By Doug Woolley, General Manager and Vice President, Dell Technologies South Africa

As technology continues to evolve, its impact on the way we work, live and innovate grows exponentially. Artificial intelligence (AI) has moved beyond being just a buzzword. It’s now at the heart of global transformation. From AI-enhanced PCs to advancements in data centre design, here’s how tech leaders across South Africa can prepare for what’s next.

1.     AI to Deliver Real Business Value

2024 was a year of discovery as businesses experimented with GenAI tools. Now, 2025 is set to be the year AI shifts from exploration to execution. According to McKinsey, GenAI usage has doubled in just 10 months, where businesses in these stages are learning, testing and gaining insights into what AI can achieve.

For many, the test and learn phase is starting to pay off. Dell Technologies’ Q2 2024 Innovation Catalyst Research revealed that 49% of South African respondents are creating a dedicated budget for AI projects, with plans to invest in training, GenAI-enhanced software, and consulting services over the next 18 months. Additionally, 21% have begun the process of deploying solutions for GenAI.

Over the next year, enterprises will continue to see real ROI as they scale AI.  That’s a game-changer. For South Africa's healthcare, finance and logistics industries - ripe for AI-driven innovation - the time has come to move from pilot projects to scaled solutions. The focus should shift to developing tailored, scalable AI applications that solve current challenges while also positioning companies for future opportunities.

What this means: If your AI strategy isn’t clearly defined yet, make it your top priority in 2025. Tools are maturing at an incredible pace, and businesses that fail to adapt risk falling behind.

2.     Introducing AI PCs: The Future of Work in Your Hands

Imagine starting your day with a PC that’s already handled the basics - drafted follow-ups, organised your to-do list, or summarised your emails while you were still making coffee. Welcome to 2025, where AI PCs bring this level of convenience to life.

These PCs are set to revolutionise how work gets done. Equipped with embedded AI capabilities, they can process data locally, resulting in faster performance, enhanced security and cost efficiency.

This is particularly beneficial for South African businesses balancing distributed teams and hybrid work environments. The importance of the edge - where data is created and consumed - is also growing. AI PCs are redefining productivity by shifting work closer to where it happens. Between higher performing CPUs, GPUs and NPUs and more PC silicon options in the market than ever before, the choice and innovation will be the best it’s ever been.

What this means: For industries evolving at breakneck speed, having smarter devices is no longer optional - it’s essential. If you’re holding onto older hardware, now may be the time to make the leap.

3.     Rethinking the Data Centre for an AI-driven World

AI is advancing faster than any technology in recent memory. In a recent analyst discussion, we found that by 2025, the overwhelming majority of AI processing (up to 95%) will focus on inferencing - using AI to make real-time decisions. This shift isn’t just an upgrade; it’s a demand for entirely new approaches to data infrastructure.

It’s why traditional siloed data centres are being replaced by ‘disaggregated architectures’, which allow computing, storage and networking systems to scale independently. This provides businesses with faster, more flexible operations without being locked into specific vendor solutions, a crucial step forward for South African companies aiming for efficiency and agility.

Furthermore, the rising cost of energy and the environmental impact of AI workloads present additional challenges such as escalating demand for data centres, which requires substantial investment in data centre infrastructure. To meet this demand, businesses must adopt energy-efficient hardware and diversified energy sources.

Liquid cooling innovation is a perfect example. In our liquid cooled compute solutions, you’ll see optimised cold plates and leak detection technology for unmatched reliability and efficiency.

Additionally, workload management and monitoring tools are essential for optimising performance, reducing costs, and ensuring AI solutions meet specific organisational needs.

What this means: Reassess your data centre strategies now to ensure they can support the scalability, flexibility and energy efficiency required by AI-driven workloads, optimising performance while minimising environmental impact.

4.     Evolving with AI Agents

2025 will also mark the rise of AI agents, which go far beyond chatbots or virtual assistants. AI agents are software systems that can plan, make decisions and take action to achieve pre-defined goals. They will be everywhere next year and will have a big impact on how we use AI.

Unlike reactive systems of the past, AI agents are evolving into proactive tools capable of managing complex workflows. From resolving intricate customer service queries to tailoring real-time marketing campaigns, AI agents will enable businesses to push boundaries. At Dell, we’re experimenting with agents to help teams sort through content, code artifacts and other knowledge bases, and by sharing our early adoption key learnings with our customers. Gartner forecasts that by 2028, one-third of generative AI interactions will be handled by these agents.

What this means: For individuals, it marks a shift in how we interact with technology. Instead of managing people alone, professionals across industries will increasingly manage AI agents. It’s a move toward more dynamic, personalised, and creative work environments.

A Checklist for South African Tech Leaders in 2025

The pace of innovation can feel rapid and disruptive, but it also comes with immense opportunity. For South African businesses, staying ahead means focusing on four key priorities:

1. Commit to AI: Develop a comprehensive AI strategy. Test new applications, learn from initial challenges, and scale successful solutions quickly.

2. Upgrade Your Tech Stack: From AI-powered PCs to modernised data centres, ensure your infrastructure aligns with your ambitions.

3. Lead on Sustainability: Adopt energy-efficient technologies to position your brand as an environmentally responsible leader.

4. Equip Your Teams: Empower employees with tools like AI agents that free them from repetitive tasks and unlock their strategic potential.

The businesses that thrive in 2025 will be those that approach these changes with clarity, agility and purpose. For South Africa’s vibrant tech ecosystem, the year ahead promises transformational growth. Are you ready to lead the way?