As the global economic landscape evolves, small and medium enterprises (SMEs) in South Africa find themselves at the forefront of technological transformation, increasingly incorporating artificial intelligence (AI) into their daily operations.
However, while more than half are using AI tools on a regular basis, many are still grappling with understanding how these technologies fit into their specific business models.
Xero's 2026 State of South African Small Business report revealed that 52% of SMEs are now utilising AI tools either daily or weekly. Yet, this embrace of technology comes with a caveat; a substantial 56% of business owners express a desire for more support to comprehend how AI can be seamlessly integrated into their operations.
Furthermore, 34% of respondents reported feeling overwhelmed by the sheer volume of information surrounding AI, underlining a significant communication gap in understanding the technology's practical applications.
The research pointed to a shift in the AI adoption narrative, transitioning from persuading businesses to adopt the technology to facilitating their understanding of how it can effectively address existing challenges.
Kenne Loubser, Chief Marketing Officer at HyperDev AI, suggested that the focus should primarily be on identifying concrete business problems rather than becoming fixated on AI as a technological concept.
"Most small business owners don’t need another explanation of what AI can theoretically do. They need to solve a specific problem this week, be it streamlining reporting, enhancing client onboarding, or consolidating information scattered across multiple spreadsheets. The key is to start with the problem, not the technology," Loubser said.
85% of SMEs prioritise digital adoption, harnessing automation and AI to accelerate manual processes and enhance visibility regarding their performance metrics. As predictive analytics and machine learning continue to grow in relevance, Gartner predicts that by the end of 2026, 40% of enterprise applications will feature task-specific AI agents, a substantial leap from less than 5% in 2025.
Despite this surge in AI capability, Loubser said that smaller businesses needn't turn every founder into a software developer.
The distance between identifying a challenge and experimenting with a potential AI solution is shrinking, allowing businesses to explore innovative avenues without incurring significant costs or requiring extensive technical skills upfront.
Loubser proposed three guiding principles for business owners:
- Choose low-risk, high-friction tasks: Starting with manageable projects, such as an internal reporting tool or a client onboarding agreement, can pave the way for straightforward implementation with identifiable benefits.
- Build visible prototypes: Creating a working, albeit rudimentary, version of an AI tool allows teams to see its potential in action, making the benefits tangible beyond theoretical conjectures.
- Measure effectiveness through time: Rather than relying on anecdotal impressions, tracking the time spent on tasks pre- and post-implementation should be the primary metric for evaluating success.
"None of this necessitates a sweeping AI initiative. Instead, it's about selecting one task that is inefficient and consistently working towards enhancing it," " Loubser said.
The technology introduced by HyperDev, founded by former leaders of tech companies valued at over R1 billion and experts from OpenAI and Google, acts as a bridge between conventional methods and innovative solutions without negating the need for human judgment.
Decisions regarding what to create and how it should function remain firmly in human hands, liberating non-technical founders to explore ideas without a hefty upfront investment.
Loubser said, "The businesses that stand to gain the most from AI won't necessarily be those undertaking large-scale initiatives. Instead, they will be the ones that resolve small, practical issues, measure the effectiveness of those solutions, and build upon that foundation."
ashley.lechman@nationalmg.co.za