(Ecofin Agency) - • 61% of African businesses say AI skills are critical to their success.
• All surveyed firms expect an AI talent gap in 2025, with many already affected.
• Cybersecurity, AI development, and cloud computing top the list of tech needs.

A growing number of African companies are worried about the lack of artificial intelligence (AI) skills on the continent. According to a new report from SAP, 61% of firms see AI expertise as absolutely essential to their future success. Even more striking, every single company surveyed expects to face a shortage of specialized AI talent by 2025.

The study, titled Africa’s AI Skills Readiness Revealed, was released on Thursday, May 15, 2025. It draws from interviews with 100 private and public companies based in South Africa, Kenya, and Nigeria. All participating firms employ more than 100 people.

For the companies that view AI skills as key to their growth, the benefits are clear. Around 64% believe AI boosts their decision-making, while 51% say it is vital for successful marketing campaigns.

Yet many businesses are already feeling the pain. Nine out of ten firms said the lack of AI talent is harming their operations. They report missed project deadlines, failed innovation efforts, the inability to take on new contracts, and even the loss of clients as a direct result of the skills gap.

To address the growing demand, 66% of businesses have launched career development programs focused on AI training. Nearly all, 98%, rank AI skills as their top training priority for the year.

The need for tech talent goes beyond just AI. Every company in the survey said their demand for tech skills increased over the past year, and almost half described this growth as “significant.”

When asked about the most in-demand tech skills, firms pointed first to cybersecurity (86%), followed by AI development (85%) and generative AI (83%). Other important areas include cloud computing (79%), AI integration (71%), data analysis (66%), and digital transformation expertise (64%).

To keep up, 94% of companies now offer training sessions at least once a month. About 37% provide these sessions on-demand so employees can learn whenever they choose.

However, offering more training does not always guarantee high-quality learning—especially for complex skills like AI. That is why 61% of surveyed companies say they are partnering with schools or outsourcing some of their employee training to external experts.

Beyond technical training, companies are facing a new challenge: meeting the needs of skilled employees who want remote or hybrid work options. In the midst of fierce competition for talent, 80% of businesses say this is their biggest human resources hurdle.

To stay competitive, 58% of companies now allow fully remote work, and 56% offer hybrid arrangements.

As employers look to hire, they are focusing on more than just hard skills. The most sought-after abilities are still technical, AI knowledge (76%) and cloud computing skills (73%) top the list. But soft skills matter too. Employers value affordability (62%), adaptability (56%), and the ability to work remotely or in a hybrid setup (49%).