South Africa’s AI hiring spree: What’s driving the demand?

South Africa is experiencing a rapid increase in the hiring of AI professionals, with a staggering 96% growth since 2019, according to the latest Job Market Trends Report from Pnet. The demand for AI skills is particularly high in the IT and education sectors, signaling a shift towards embracing artificial intelligence in the workplace. Paul Byrne, Head of Data Insights and Customer Success at Pnet, provided valuable insights into the current landscape of AI hiring in South Africa during an interview on CNBC Africa's Power Lunch South Africa. One of the key takeaways from the report is the significant growth in AI-related roles within the IT industry. Byrne highlighted that 88% of AI skills are concentrated in the IT sector, with a notable 45% increase in the employment of AI developers and engineers. This surge in demand reflects the industry's rapid pace of development and innovation, suggesting a trajectory of continuous growth in the AI space. Additionally, the report revealed that 27% of individuals in the IT sector are classified as IT trainers, responsible for managing and verifying AI outputs. This trend indicates a growing need for professionals with specialized skills to support and enhance AI technologies. Moreover, the business and management sectors are also witnessing an uptick in the employment of AI talent, underscoring the importance of strategic AI integration for companies aiming to stay competitive. Furthermore, educational institutions in South Africa are increasingly focusing on training individuals in AI and IT-related skills, with 4% of IT professionals currently employed in the education sector. This emphasis on education aligns with the growing demand for skilled AI professionals and showcases a proactive approach towards preparing the workforce for the future of work. When discussing the types of companies recruiting AI talent, Byrne noted that IT firms lead the way, accounting for 62% of AI-related job opportunities. However, the education sector is also on the rise, comprising 10% of AI job postings. Other industries such as finance and consulting are also recognizing the value of AI expertise, with startups and self-initiated projects contributing to 4% of AI recruitment efforts. In comparison to other in-demand tech roles like cloud computing and cybersecurity, the demand for AI professionals is expected to parallel the growth of these sectors. While AI plays a pivotal role in reshaping how technology is deployed, cloud computing remains essential for infrastructure support, and cybersecurity is becoming increasingly crucial in safeguarding data and systems from threats. Addressing the experience levels sought by employers, Byrne emphasized the importance of having some level of experience in AI roles. Companies are looking for candidates who can immediately add value and contribute to their AI initiatives. However, Byrne also highlighted an opportunity for companies to invest in developing junior talent, especially as the AI industry continues to expand rapidly. In conclusion, the surge in AI hiring in South Africa reflects a broader global trend towards embracing artificial intelligence in various industries. The demand for AI professionals is expected to continue growing, with a focus on upskilling existing talent and nurturing the next generation of AI experts.