Artificial intelligence (AI) is transforming workforce planning in South Africa, addressing persistent challenges like high unemployment (33%) and severe skills mismatches, particularly among youth and Black women. With only 22% of workers possessing intermediate or advanced digital skills, AI offers a means to bridge these gaps through smarter hiring and operational efficiency.

AI-powered recruitment platforms match candidates’ skills to job requirements with increased accuracy and reduced bias. Standard Bank, for example, adopted such a system in 2022 to fill roles in data analytics and cybersecurity. By analysing both formal and informal qualifications, the platform improved hiring diversity and reduced recruitment time by 25%, aligning with South Africa’s Employment Equity Act. This approach demonstrated AI’s potential to tap underrepresented talent pools, such as rural graduates and informal workers.

Process optimisation is another key area. In the mining sector, Anglo American implemented AI-driven predictive maintenance at Kumba Iron Ore, cutting equipment downtime by 18% and saving millions in costs. In retail, Shoprite’s AI-based supply chain system, deployed in 2023, forecasted perishable goods demand across 2,900 stores, reducing food waste by 12% and improving stock availability.

These innovations not only drive productivity and cost-efficiency but also align with South Africa’s National Development Plan 2030. To maximise AI’s potential, businesses must integrate workforce training and collaborate with Sector Education and Training Authorities (SETAs) to ensure alignment with national skills goals.

Part 2 of the article will explore AI’s role in upskilling, workforce structure optimisation, and tackling human resource challenges like inequality, anxiety, and data governance.