AI is transforming manufacturing operations, compelling business leaders to move beyond exploration and into rapid execution.
Johannesburg, 15 July 2025 – As the manufacturing industry undergoes rapid transformation, driven by the green transition, digital innovation, and shifting supply chain dynamics, local businesses must adapt or risk being left behind. In our latest report, AI in Operations: Revolutionising the manufacturing industry, we highlight the pressing forces reshaping the sector, from rising energy costs and inflation to tightening regulations and a growing skills gap. These challenges demand bold, forward-thinking strategies—AI, including traditional forms such as machine learning and newer developments like generative and agentic AI, is playing a crucial role in addressing the challenges.
In a study of over 400 operations executives across 30+ countries in Europe, the Middle East and Africa, results show that manufacturing companies believe strongly in AI’s potential to increase profitability. Nearly 70% of global respondents and 81% of South African respondents expect it to increase operating profits by at least three percentage points by 2030 and more than 56% of South African respondents anticipate an even greater rise of five percentage points in operating profits.
“Although expectations are high, only 15% of South African respondents report significant financial returns from AI in operations. While 50% have moved beyond pilot phases, the pace of implementation and return on investment remain measured. However, this does not negate the fact that AI is already delivering measurable improvements in decision-making, productivity, flexibility and delivery volumes.”
As companies increasingly rely on AI to drive critical decisions and operations, confidence in the integrity and reliability of these technologies is essential. Trust is critical to reap the rewards of GenAI too. The results of PwC’s 28th Annual Global CEO Survey: Sub-Saharan Africa perspective highlight this clearly: 34% of CEOs express high and very high trust in AI integration—matching global confidence levels.
“The biggest hurdles to AI adoption in South Africa include the cost of AI software, data quality and a shortage of specialised AI talent. However, despite these challenges, 72% of South African companies plan to adopt or expand AI initiatives in the next 12 months.”
“Leaders are taking a balanced approach to AI adoption—priortising purposeful implementation rather than rushing to match global adoption rates, while still achieving comparable or better efficiency gains when they do implement,” says Ndiweni.
AI is complex. Many pieces of the puzzle need to come together to successfully scale AI use cases across the organisation and realise tangible business benefits. However, operations leaders should not wait any longer to see how AI evolves before setting out their AI strategy and committing to AI investments. The longer they wait, the greater the risk of losing ground to more ambitious competitors.
Explore the full report here
AI in Operations: Revolutionising the manufacturing industry
