Young South Africans Face AI Dilemma: Opportunities and Threats
Read more
IOL
iol.co.za

Young South Africans Face AI Dilemma: Opportunities and Threats

Young South Africans are actively adopting artificial intelligence (AI), yet many express concerns about their career prospects as the technology transforms employer skill requirements.

Statistics show that the young generation in South Africa is becoming increasingly active online and utilizing new technologies, but they remain anxious about their place in a world being reshaped by artificial intelligence. This issue was raised during a recent dialogue, which asserted that South Africa has talked enough about AI, and now it is time to act.

According to the Q2 2026 Labour Force Survey from Statistics South Africa, youth unemployment among those aged 15 to 34 reached 47.4%, higher than the overall unemployment rate of 33.6%. The number of unemployed youth increased by 264,000 people, reaching five million.

Against the backdrop of AI beginning to change the skills demanded by employers, the fifth annual Future of Work Dialogue, organized by the Institute for the Future of Work (IFOW) at Tshwane University of Technology (TUT) in Pretoria from September 30 to October 1, became a platform to discuss this problem.

Under the theme 'Turning Point of Development: Advancing a Sustainable Future for Africa through Innovative AI-based Pathways,' participants were urged to move from discussing the potential significance of AI to defining which institutions must act right now.

Tseliso Mohlomi, Senior Director at the TUT Vice-Chancellor's Office, stated: 'The future of work is no longer a conversation about the future. It is here.' He emphasized that a young South African job seeker today cannot wait another five years for institutions to perfect their strategies.

Young people are not waiting for permission. A study by OECD and Cisco showed that 45.4% of South Africans actively use generative AI, with over three-quarters of respondents finding it useful. Furthermore, a survey by the Top Employers Institute revealed that 68% of Gen Z employees in South Africa believe AI will positively impact work, and 82% expect it to help them acquire new skills.

However, sentiments differ among those outside the labor market. According to an African Leadership University survey from 2025, only 39% of South African school leavers felt confident about finding a job after graduation, and only 36% viewed AI as a career opportunity. The greatest concern was the fear, expressed by 62% of respondents, regarding insufficient job opportunities.

This contrast is evident: for someone who has a job, AI may look like a productivity boost, whereas for the unemployed, it may represent another obstacle.

Another issue was awareness. A study by the Global Center on AI Governance showed that over 70% of South Africans had little to no familiarity with the term 'artificial intelligence,' with their primary sources of information being social media, television, or radio, rather than formal education.

Using a chatbot is one thing, but having skills that employers demand is quite another.

South Africa has numerous strategies concerning the Fourth Industrial Revolution (4IR), digital transformation, and skills development. IFOW argued that the problem lies in the coordinated implementation of these plans.

During the 2025 dialogue, participants proposed creating a National AI Implementation Council to coordinate the efforts of government, universities, and industry around a measurable action plan with set deadlines. This year, organizers returned to the questions underlying this idea:

  • Who is responsible for what?
  • By when?
  • With what resources?
  • How will progress be measured?
  • Who reports if agreed commitments are not met?

Employers require rapidly changing skills, while universities and colleges may struggle to update curricula promptly. IFOW called on employers to signal emerging skills in advance, accelerate curriculum adaptation, increase internships and vocational training, and boost industry investment in recruitment channels.

Key in-demand skills identified include cybersecurity, cloud computing, AI literacy, and data engineering, with a need for deeper competence in microelectronics, advanced manufacturing, and embedded AI systems.

The dialogue also addressed Africa's place in the global technology economy. Organizers noted that African economies need to develop skills, enterprises, research potential, and intellectual property to participate in the entire chain of technological value creation, rather than just consuming technologies created elsewhere.

The economic contribution of tech platforms has already been significant. Data presented at the 2025 dialogue showed that one mobile platform valued its operations in South Africa at approximately 17 billion Rand in economic activity in 2023 and provided about 100,000 jobs, while a global search and cloud company estimated its local contribution at roughly 118 billion Rand in GDP.

Organizers stressed that the task is to transform this adoption into domestic capabilities, productive enterprises, and jobs.

No one claimed that AI alone would solve the unemployment problem. Mohlomi stated: 'South Africa's unemployment crisis will not be solved by AI, nor by any single council, conference, or policy document.' However, he rejected the 'false choice between an AI-driven economy and a job-rich and inclusive economy,' urging the country to organize 'sufficiently purposefully to shape this technological transition in South Africa's interest, expanding participation, building African potential, protecting workers, and equipping youth to compete.'

The goal was to create a common framework defining responsibilities, resources, timelines, and measurable actions.

Mohlomi concluded: 'Implementation is no less glamorous part of the strategy. For South Africa, implementation has become the strategy itself.'

For the generation already using these tools, the future of work with AI may look more efficient, while this future seems less attainable for those still seeking employment. The test for industry leaders is how quickly implementation occurs to help resolve the unemployment crisis.

Similar stories

Financial sector and security in South Africa face threats related to the development of autonomous artificial intelligence
Read more
iol.co.za

Financial sector and security in South Africa face threats related to the development of autonomous artificial intelligence

The application of artificial intelligence (AI) will continue to grow, covering both basic tasks and complex processes such as international investments. The central concept here is agentic AI, which implies trusting AI to make complex and significant decisions on behalf of the user.

This type of AI goes far beyond simply drafting emails or answering simple queries. Agentic AI is capable of performing much more intricate tasks, such as independently managing investment strategies, executing multi-stage business operations, or booking complete travel itineraries.

A roundtable meeting was held several weeks ago dedicated to bridging the trust gap in AI agents and examining how they are transforming banking, payments, and business workflows. The event was organized by Sumsub—an AI-powered trust infrastructure provider that combines identity verification, fraud prevention, transaction monitoring, and risk management to optimize compliance efficiency.

Under the leadership of Mick Amelish, AI advocate at Sumsub, discussions focused on what agentic AI could mean for South Africa as local adoption steadily expands. Hannes Bezuidenhout, Vice President of Sales for Africa at Sumsub, and Jarrid Jensen, Regional Director for South Africa, also shared their industry insights.

Amelish emphasized that 'the biggest shift towards operating in an 'agentic' mode is agency. Last year, AI was just an assistant—it helped proofread texts or suggest basic ideas. Now, AI can access the external world, read the live internet, interact with other digital products, make independent purchases, register on websites, or directly interact with bank accounts with permission.'

He continued to explain that for centuries, society functioned on the assumption that every operation or action was performed by a human. Today, this human factor is gradually being replaced.

For many, this rapid transition causes legitimate concern. However, these concerns can be largely mitigated provided there is proper education and a clear understanding of how to regulate agentic AI.

Despite these precautions, the threat of AI-driven fraud remains a rapidly growing problem. The situation is reminiscent of Kyle Reese's famous warning about the Terminator from the classic 1984 film: 'You can't negotiate with it. You can't bargain with it. It feels no pity, remorse, or fear. And it will never stop... until you're dead!'

Although Reese described an unrelenting cybernetic killer, this quote vividly reflects modern concerns about autonomous digital threats—without physical violence, but with equal persistence in exploiting digital vulnerabilities.

Turning to the local situation, Jensen noted how corporate banking trends are developing in South Africa. He stated: 'The large-scale adoption of true AI agents in South Africa is still quite low compared to global markets. South Africa has a complex market with advanced digital banking and instant payment systems, and consumers are already very comfortable with digital transactions. Nevertheless, full agentic adoption is still in its early stages.'

Adding this perspective, Bezuidenhout observed that while forward-thinking institutions like Discovery Bank are actively moving into the agentic space, South Africa as a whole lags behind international leaders such as China.

One of the main issues associated with agentic AI concerns accountability: what happens if something goes wrong, and who bears the ultimate responsibility—the person who gave the initial prompt, or the machine that executed the action?

The general consensus at the event was that the AI itself cannot bear legal liability for illegal activities; responsibility must always be traced back to the human operator or system controller. Nevertheless, new methods of financial fraud are evolving rapidly, and regulatory frameworks often lag behind these technological changes.

Illustrating this growing threat, Sumsub data shows that while the global rate of identity fraud slightly decreased to 2.2% in 2025 (compared to 2.6% in 2024), cases of high-tech fraud increased by 180% year-on-year, as attackers shifted from low-effort fraud to advanced AI-based attacks.

Ultimately, as agentic AI transitions from a new experiment to core financial infrastructure in South Africa, balancing automated convenience with vigilant human oversight will be key to maintaining security and trust.

The Significance of Youth Skills and Employment for South Africa in the Context of BRICS Cooperation's 20th Anniversary
Read more
iol.co.za

The Significance of Youth Skills and Employment for South Africa in the Context of BRICS Cooperation's 20th Anniversary

In 2026, BRICS will celebrate two decades of cooperation. Initially a union comprising Brazil, Russia, India, and China, the alliance has transformed into a broader platform for political, economic, scientific, and international interaction, with South Africa joining in 2011, and the group subsequently expanding.

The evolution of this platform opens up growing opportunities for youth engagement. This is particularly relevant as the generation shaped by BRICS cooperation is now entering the labor market, starting businesses, conducting research, and participating more actively in public life both domestically and internationally.

For BRICS, youth policy extends beyond merely organizing conferences or exchanges. It is increasingly linked to the strategic question of how to equip young people with the necessary skills, networks, and economic opportunities to support the development of BRICS countries. This issue is especially acute in South Africa.

According to Statistics South Africa, in the second quarter of 2026, 5 million young people aged 15 to 34 were unemployed. Furthermore, 36.4% of those aged 15–24 lacked employment, education, or training. These figures indicate that the complexity lies not only in a lack of qualifications; South Africa requires additional pathways from education and training to employment, entrepreneurship, and productive economic activity. This is where BRICS cooperation can provide practical benefit.

The association's broader agenda is based on three interconnected areas: political and defense cooperation, economic and financial interaction, and people-to-people cooperation. Within this framework, youth policy is increasingly tied to education, skills development, entrepreneurship, science and technology, innovation, and employment.

At the BRICS Summit in Rio de Janeiro in 2025, leaders directly called for the implementation of inclusive youth employment policies, ensuring a smoother transition from study to work, and expanding access to vocational training. They also emphasized the need for responsible technology use, developing digital competencies, and preparing youth for labor market changes driven by artificial intelligence. The institutional foundations for this work were laid in 2015 when the five BRICS countries signed a memorandum of cooperation on youth issues.

Since then, the BRICS Youth Summit, the BRICS Youth Council, and ministerial and high-level official meetings have provided a basis for coordinating joint initiatives. Moreover, youth cooperation has gradually moved beyond mere dialogue. For instance, the Russian International School of BRICS: New Generation, launched in 2017, gathered over 1000 participants from more than 60 countries, and the BRICS Youth Mentorship Program combines mentoring, internships, and business connections for young entrepreneurs.

South Africa has also contributed to this agenda: in April 2025, the BRICS Youth Innovation Summit was held in Cape Town, focusing on artificial intelligence, digital transformation, food security, circular economy, and green technologies. In 2026, this approach became more applied. Under India's chairmanship in BRICS, the youth agenda focuses on education and skills, entrepreneurship, science and innovation, inclusivity, sustainable development, and youth exchange.

The first BRICS Youth Coordination Meeting this year, held in March, launched a program that includes working groups, thematic consultations, volunteer activities, the Youth Development Forum, the Youth Council, the Youth Summit, and a meeting of youth ministers.

The framework conditions for BRICS youth cooperation in 2026 include youth exchanges, the BRICS Volunteer Week, leadership training, and entrepreneurship internships in India, while placing greater emphasis on the participation and mentorship of adolescents.

Entrepreneurship has become one of the most direct ways to link youth cooperation with employment. In May 2026, a meeting of the BRICS Youth Council Entrepreneurship Working Group took place in India, which combined practical workshops, visits to enterprises and innovation ecosystems, as well as mentoring and networking among young entrepreneurs from BRICS countries.

At the BRICS Summit in New Delhi in September 2026, India also proposed a BRICS Startup Innovation Fund and an incubator network to strengthen support for young entrepreneurs and startups. A similar trend is visible in science and technology. The New Delhi Declaration 2026 encouraged the more active participation of young researchers and startups through existing BRICS mechanisms, including the Young Scientists Forum and the Young Innovators Award. It also welcomed the proposal to create a virtual platform for BRICS youth startups, designed to connect young innovators and facilitate networking across the association.

The potential benefits for South Africa are particularly significant. BRICS can help address youth unemployment not by replacing national policy decisions, but by creating additional international opportunities: joint educational programs, internships, research projects, entrepreneurial support, access to business networks, and partnerships between universities and companies.

Cooperation in high-growth potential areas—including digital technologies, artificial intelligence, renewable energy, green economy, manufacturing, agriculture, and creative industries—can help young South Africans acquire skills aligned with emerging demand in BRICS and beyond. The key challenge is connecting these tools. The Youth Summit is useful if it leads to partnerships; a training program is valuable if it enhances employability; an internship is worthwhile when it provides access to a professional network; and startup support has a greater impact when it opens access to investors and markets in other BRICS countries.

After two decades of cooperation, the BRICS youth agenda is shifting from participation to opportunity. The goal should be to build a continuous pathway from education and skills development to mentorship, internships, entrepreneurship, research, and employment. For South Africa, where the issue of youth employment growth is so vital, transforming this pathway into real economic opportunities is not just an added benefit of BRICS cooperation, but one of the areas where its practical value is most clearly translated into improving the quality of life for South Africans.

Popular