The period of rapid adoption of artificial intelligence (AI) in corporate boards is coming to an end. Although the technology has become a regular topic of discussion in leadership, the more complex task is proving that investments in technology and AI actually generate measurable business value.
Major South African financial institutions are increasingly presenting AI, data, and digital capabilities not just as operational tools, but as growth drivers. For example, Nedbank stated in its 2025 integrated report: 'AI is not a future question, but a current strategic priority.' Similarly, Old Mutual emphasized in its 2025 report: 'Our goal is clear: we are transforming Old Mutual by implementing AI at scale, unlocking new opportunities for growth, efficiency, and exceptional customer experience.'
Capitec noted in its 2026 annual report that AI is already actively used, as the company has significantly invested in this area this year. Absa indicated in its integrated report that 'digital capability is a key driver of future cash flows, customer retention, competitive differentiation, and economic efficiency.' Margaret Nienaber, COO of Standard Bank Group, stated that AI 'is not an option; it will fundamentally change how customers interact with us, how work is done, and how value is created.'
These companies promote a growth narrative during a time when finding profitable growth is becoming difficult. According to the South African Reserve Bank's Quarterly Bulletin for September 2026, corporate deposits exceeded 1.8 trillion rand, compared to 1.1 trillion rand in 2019, indicating that companies are accumulating cash rather than finding opportunities to invest it. Under these conditions, executives are striving to use technology not only to replace outdated systems, modernize old platforms, or increase efficiency, but also to achieve their most critical strategic goal—sustainable and profitable growth.
However, saying it is easier than doing it. Financial institutions have always relied on technology, but previously, technology was rarely the product itself. Growth was achieved through entering new markets, launching new products, or increasing customer share. Today, however, customers increasingly interact with businesses through digital channels, making technology, data, and AI central both to value creation and to ensuring competitive advantages.
Those who have faced the need to justify technology investments know this situation. The investment committee evaluates such proposals, trying to avoid double-counting benefits and conduct a proper comparison. Ultimately, cost remains the only measure with any degree of accuracy, and even that is questionable. Therefore, budgets are allocated based on presentation or speaker influence. At best, the technology 'aligns' with strategic goals and is justified as an 'enabling factor.'
Rarely Tracked
Even with a convincing business case calculating return on investment, benefits are rarely tracked. Projects are easily postponed in favor of the next idea that seems valuable, which makes no sense given the amount invested in changes. Douglas Hubbard, Alexander Budzer, and Andreas Lied in the book 'How to Measure Anything in Project Management' (Wiley, 2025) suggest that project costs account for approximately 10–40% of the global economy.
The opportunity now lies in embedding measurement directly into digital products and customer journeys: instrumenting them. In rare cases where this is done, it provides valuable feedback on the actual usage and value of digital and AI investments, applying the same level of tracking that retailers use for physical goods.
Tracking benefits is also important when managing technology providers. Hyperscale cloud providers, software platforms, and AI vendors position their products as a source of competitive advantage. Organizations need proof to distinguish real value creation from mere technology consumption.
Most financial sector leaders are already investing in technology and AI. The more complex question is where these investments will lead to a sustainable competitive advantage, and where they will simply increase costs. Measuring strategic investments in AI and technology is as critical as measuring any other significant investment. Technology can do this automatically and continuously, in real time, if measurement is built into it from the start, closing the critical feedback loop for boards of directors and executive committees.