Study reveals privacy and ethics are a top priority in AI implementation

New research released today has revealed that 92.6% of South African businesses have started their AI journey, with 32.7% achieving widespread or advanced implementation.
Image source: DC Studio from
Image source: DC Studio from Freepik

The study, commissioned by Zoho, further highlighted that as compared to other markets, more South African businesses (40%) prioritised AI ethic and responsible usage. Furthermore, 74% of organisations strengthened their privacy measures since implementing AI, with PoPI Act having improved privacy awareness.

The study, titled The AI Privacy Equation: Cautious Innovation in South Africa, surveyed 372 South African business professionals across industries and company sizes, and was conducted by Arion Research on behalf of Zoho. The findings reveal that South African organisations are integrating AI technologies with a deliberate, privacy-first mindset, creating sustainable frameworks for digital transformation and regulatory compliance.

“South Africa’s approach demonstrates that privacy and innovation are not opposing forces,” said Andrew Bourne, country head, Zoho South Africa. “By embedding ethical and privacy-by-design principles into AI implementation, businesses here are building the foundation for long-term trust, resilience, and success.”

Privacy in AI implementation

As per the study, while privacy concerns were cited as the top barrier to AI adoption (35%), these same concerns are driving stronger safeguards: nearly three-quarters of organisations (74%) have strengthened their privacy measures since implementing AI.

This also impacts investments in the technology and governance practices: 30.7% respondents allocate over 30% of their IT budget on technology, 56% respondents conduct third-party AI risk assessments, 53% maintain documented AI use policies, and 50.8% conduct regular privacy audits of AI systems.

The study also underscores the country’s maturity in privacy management: 89% of respondents have a dedicated privacy officer or team. Moreover, 42% of respondents conduct quarterly privacy-impact assessments, while 22% conduct it before new system is implemented.

PoPIA and AI

The Protection of Personal Information Act (PoPIA) has played a pivotal role in shaping the privacy-first mindset in South Africa. Over two-thirds (68%) of the respondents report increased awareness of privacy and data protection obligations since the Act’s introduction, largely due to internal training (56.8%), government sources (55.5%), and news media (53.5%). Because of this, when processing sensitive data for AI systems, 31.4% respondents prefer explicit consent and transparency, 28% use anonymisation, and 23% create synthetic data.

"South African organisations are showing remarkable maturity in balancing AI innovation with privacy protection," said Michael Fauscette, CEO & Chief Analyst, Arion Research LLC.

"The combination of 89% having dedicated privacy teams, 74% strengthening privacy measures through AI adoption, and 40% prioritising AI ethics above global averages isn't coincidental; it's strategic. This approach, where privacy and ethics are embedded rather than added on, is creating sustainable competitive advantage and positioning South Africa as a leader in responsible AI adoption across emerging markets."

Technical leadership and ethics integration

The report highlights South Africa’s exceptional technical leadership involvement in AI governance. Over one-third (38%) hold CEO-level positions and 17.5% of respondents hold IT Director or CIO roles — one of the highest ratios of executive and technical collaboration among emerging markets. This leadership mix is fostering measured, sustainable AI adoption, ensuring innovation proceeds with accountability and foresight.

This unique technical leadership influence manifests itself in the way organisations in South Africa are matching AI sourcing strategies to their specific needs. This is suggested by the diversity in their sourcing strategy: 22% respondents use custom vendor solutions and hybrid approach, 20% leverage AI embedded in enterprise applications, and 15% develop in-house capabilities.

In terms of skills development, primary gap is skilled in-house resources (26.6%). However, for training, 58.6% organisations prioritise data analysis and interpretation, and 52.9% focus on literacy and concepts. Most importantly, nearly 40% of organisations include ethics and responsible AI training in their programmes — well above global average. This focus reflects a belief that human-centred and ethical AI design is a competitive differentiator.

The technical leadership also leads to a mature response in case of an AI incident. In case of a significant AI error impacting customers, 42.4% respondents say they will continue to use AI with increased human oversight, 26.5% would follow pre-established incident response plans, while 19.4% would modify systems for limited redeployment.

Responsible framework for AI development in Africa

The research identifies South Africa’s model as a blueprint for other emerging markets: a balanced approach that combines technical leadership, privacy-first design, ethics-integrated training, and proactive regulation.

“South African organisations are showing that responsible AI is not just a regulatory requirement — it’s a strategic advantage,” added Bourne. “By uniting innovation with trust and transparency, they are building a model of digital progress that can inspire the rest of the continent.”

To read more about the survey findings, visit here.


 
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