SA consumers ready for impact of AI on economy

A new study shows that South Africans are more prepared for the impact of artificial intelligence (AI) on the economy than consumers in most other countries.

The 2024 edition of the Ford Trends Report, released this week, was based on 16,000 interviews across 15 countries. It showed that South Africans are well above the global average in expecting a positive impact on the economy. South Africa also has the lowest proportion of people in any of the countries who say they “don’t really understand AI”.

Jen Brace, chief futurist at Ford Motor Company, told Business Times that this year’s study had introduced a major focus on AI because “it’s been integrated into our lives in a lot of ways for years but people forget about that because generative AI has taken over the airwaves”.

On the question of whether people don’t really understand AI, the global average was 50%, but in South Africa stood at only 37%.

“I saw that South Africa was well below the rest in terms of saying that, and  I was proud of you guys for that,” said Brace.

While 45% of respondents globally expected a positive impact of AI on the economy, South Africa stood at 53% – among the highest of the countries measured, and on a par with China.

The study is the 12th annual edition of the project and does not focus on automotive matters.

“We were always looking to understand what is happening from a global consumer sentiment point of view, largely outside of the automotive industry. That is by design. We’re trying to understand what is happening around the world so that we can better understand the external environment that our customers are in, how they’re feeling about things, and how, as an automotive company, we might be better prepared to create products and services that will react to that.

“This year, we titled the overall theme as ‘Charting my path’. That was recognising that the world continues to feel somewhat unstable several years post-pandemic . It continues to feel like things haven’t settled down as much as we all would have hoped.

“People are prioritising themselves, and that gives them a sense of control. It gives them a sense of stability by recognising there are things outside of their control. The world feels somewhat overwhelming, but they say, ‘what I can do is focus on me’.”

A massive 82% of global respondents agreed with the statement: “The uncertainties in the world have made me realise the importance of finding inner peace.” In South Africa, Brazil and the Middle East, that number shot up to 89%. The USA, in dramatic contrast, fell to 74% on the question.

“Some of the interesting things that we see in that space is that traditional markers of success feel like they’re shifting. This focus on self and  on well-being is bringing into question things like people saying that they would forego advancement at work. They want to prioritise themselves, and if the job is stressful, it’s simply not worth it.

“One of the other ones that was interesting when we talk about traditional markers of success, is that 83% of parents said that they would prioritise mental health over academic success for their children. These signals follow on from what we’ve seen over the years, that anxiety continues to rise.”

While the study did not focus on automotive matters, it did ask about electric vehicle (EV) uptake. Coincidentally, in the week after Trade, Industry and Competition Minister Ebrahim Patel released the South African government’s EV White Paper, this country scored third in the world, after Thailand and China, in agreeing that “EVs are the future”. Compared to a global average of 69%, South Africans saw 80% agreeing.

This country also ranked among the highest in the desire to combat climate change, with 58% of respondents saying people should drive EVs in the interests of the environment, compared to 47% globally. This was despite the fact that only 1% said they were already driving EVs, compared to a global average of 4%.

A fascinating outcome of the AI questions in the study further indicates a South African mindset ahead of the global average: 70% would trust AI to plan and purchase their travel in the next five years. That is well above the global average of 61%. Moreover, there is almost no difference between men and women in this regard in South Africa whereas, globally, men are far readier in this regard, at 65% versus 57%.