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AI: An ally, not an enemy, of strategic thinking

By Tumi Rabanye, Managing Partner – Strategy at Leagas Delaney South Africa I do not consider myself an early adopter of technology, nor do I consider myself a late adopter. I’d say I’m one of those that need just enough of the right kind of nudges to get me to trial and thereafter, I quite enjoy the playing and exploration stages of learning a new application. One such opportunity occurred this week, when as a business unit, we commenced our exploration of the AI-based tools that will enhance our delivery of strategy internally, for our clients and new business prospects. This experience inspired this article. The rise of artificial intelligence (AI) in advertising has sparked heated debates about its role in creative strategy, campaign execution, and the future of human-driven marketing. Some critics argue that AI threatens strategic thinking, replacing human ingenuity with automation. An alternative perspective is that AI is not the enemy of strategy but an invaluable ally – it enhances productivity, allows room for critical thinking, and does not substitute the emotional intelligence (EQ) and social intelligence that a human offers. AI empowers strategists to focus on what truly matters: data driven insights matched with irreplaceable human connection, to inspire creativity. A catalyst for productivity Like most industries, advertising moves fast, it is an industry that demands efficiency with output and that takes time. But the introduction of AI potentially relieves us of the time-consuming tasks, freeing up critical thinking time better used for quality of insight and incisive ideas. Very importantly it liberates and gives the strategist back time for the critical task of playing and exploration, that enables them to build an effective creative bridge. The heavy lifting done by AI-driven analytics platforms helps process consumer data, identifying trends and invites the strategist to use their own social intelligence to correlate or corroborate the information. From the prompts delivered by the AI tools I’ve used, I had the benefit of stretching my thinking sooner and further than I had been able to before. The rapid data processing not only saved me time but also enabled a richer conversation with my clients, empowering us to make more informed decisions. I’m learning the benefit of prompts and using predictive analytics, powered by machine learning, to better explore consumer behaviours and user journeys. With AI-driven automation tools, take-over of repetitive, low-value tasks enabled me to redirect my efforts toward higher-order thinking, the very reason someone like me would have fallen in love with strategy to begin with. Liberating critical thinking Rather than stifling strategic thought, AI amplifies it. By handling tedious and complex computational work, AI grants strategists more mental bandwidth to tackle big-picture challenges. Instead of being bogged down by manual research from multiple sources, data analysis and then synergising information, strategists are able to dedicate their energy to interpreting data in meaningful ways. Strategic thinking involves creativity, problem-solving, and adaptability — skills that AI cannot replicate. AI provides the insights, but relies on the human desire to engage, to persistently ask and refine the questions, synthesise information, and make the final decisions. The intersection of AI-generated insights and human intuition creates a dynamic synergy where strategy is both data-informed and emotionally resonant. For instance, AI can suggest optimised ad placements, but human strategists must determine how those placements align with brand storytelling. AI can analyse past performance and recommend content formats, but only human creatives can craft the narratives that inspire and connect with audiences. The key lies in collaboration. AI supplies the tools, while humans provide the vision. Unlocking emotional intelligence and social awareness Advertising is not just about reaching an audience; it is about resonating with them on an emotional level. AI, while highly advanced, misses nuances such as cultural context, social and ethical consideration, and human emotions. Emotional intelligence (EQ) and social intelligence is the preserve of the human behind the machine. AI cannot fully grasp the depth of human emotions that drive decision-making. Human strategists help craft messaging that is empathetic, inclusive, and aligned with societal values. Emotional intelligence is essential to tap into human experiences in ways that AI alone cannot replicate. A brand’s reputation requires a deep understanding of human emotions and societal expectations, skills that remain uniquely human and core to the role of a strategist. Similarly, social intelligence plays a vital role in identifying emerging cultural shifts and trends. Understanding subcultures, generational attitudes, and regional differences requires lived experiences, empathy, and an awareness that AI cannot authentically replicate. The future of AI and human collaboration In my humble assessment, success as a strategist demands that we leverage AI as a powerful assistant in order to accelerate critical thinking, judgment, and strategic oversight. The core of advertising, brand storytelling and connection, will remain firmly in human hearts and hands. The top three observations I am making from my own learning journey are that to maximise the benefits of AI, strategists should: Where to from here? AI is not the adversary to the discipline or role of strategy; it is an ally that accelerates productivity. AI frees us to focus on what truly matters: crafting meaningful, impactful work that connects with people on a human level. Essentially, AI cannot replace humans, but it has the potential to replace humans who do not embrace it and learn how to use it proactively. Tumi Rabanye is Chief Strategy Officer at Leagas Delaney South Africa with experience in various sectors including broadcast, telecoms and financial services. Leagas Delaney is an independent communications agency with offices in London, Hamburg, Milan, Shanghai, Johannesburg and Cape Town.

Hydrogen: A catalyst to fuel Africa’s green industrial revolution

By Tiago Marques, Head of Content of Global African Hydrogen Summit and Vice President of Production at the Sustainable Energy Council What is hydrogen and how is it produced?  Hydrogen is a clean alternative to methane, also known as natural gas. It’s the most abundant chemical element, estimated to contribute 75% of the mass of the universe. Hydrogen can be made directly from fossil fuels or biomass, or it can be produced by passing electricity through water, breaking the water into its constituent components of hydrogen and oxygen.  According to the National Renewable Energy Laboratory from the US Department of Energy, hydrogen has very high energy for its weight, but very low energy for its volume, so new technology is needed to store and transport it. And fuel cell technology is still in early development, needing improvements in efficiency and durability. The emerging clean hydrogen market The International Energy Agency (IEA) has stated the key pillars of decarbonising the global energy system are: In addition to the projected volume of emissions reduction hydrogen is expected to facilitate, hydrogen is positioned to play a significant role in the energy transition due to emerging capabilities to produce clean hydrogen and hydrogen-based fuels as well as increasing hydrogen demand generation. According to McKinsey research, total hydrogen demand has the potential to reach up to 660 million tons by 2050, abating more than 20% of global emissions. Realising this opportunity will require all relevant stakeholders to come together to develop clean hydrogen value chains – often across geographies. Those positioned to take action in these areas will be uniquely advantaged to create new sources of value and play a leading role in future global energy markets. Clean hydrogen is expected to play a critical role in decarbonising hard-to-abate sectors, often as a complement to other technologies, including renewable power and biofuels. Hydrogen has the potential to decarbonise heavy industries including steel, petrochemicals, fertilisers, long-haul transport and more as well as to support flexible power generation, among other applications. While momentum is strong, more needs to be done to be on track to achieve net zero ambitions by 2050. The increasingly supportive policy and funding environment – including quantified 2030 production capacity targets for many countries – means about two-thirds of announced projects are projecting start-up by the end of the decade. The momentum created by the US Inflation Reduction Act has helped boost energy-related sectors globally, including low carbon hydrogen. For investors, comparing the effect of hydrogen-related policy and legislation on costs and pricing will be a key element of making informed, data-driven investment decisions. However, the emerging hydrogen economy faces significant challenges in ramping up, including: The opportunity for Africa For many African countries, the question is not about reducing their carbon footprint but rather to sustainably harness their existing resources to meet the growing demand for energy that will advance economic development, map a sustainable path to a net zero future and eliminate energy poverty across the continent. To this end, some African countries are setting their sights on clean hydrogen.  In the global drive to develop and commercialise clean hydrogen, Africa is on an equal footing with developed economies. Governments around the world are promoting projects for domestic and export markets of clean hydrogen, with billions of dollars expected to be invested over the next few years. To capture the opportunity, supportive and facilitating policy will be needed to incentivise investment as well as: Given the advantage of abundant wind and solar resources, vast underpopulated landmasses and strategic coast lines, the continent could be highly competitive in supplying clean hydrogen for local and global consumption. A McKinsey Achieved Commitments scenario projects global hydrogen demand could grow sevenfold by 2050, accompanied by falling hydrogen production and renewable capacity increases. Africa has a significant opportunity to export the clean hydrogen needed to balance global demand with available supply. Collectively and through collaboration, hydrogen-producing African countries have the potential to complement African hydrogen exports of up to 40 megatons by 2050 with self- supply its full domestic demand potential of 10 to 18 megatons of hydrogen. To enable these shifts, McKinsey projects $2.9-trillion of cumulative capital expenditure would be required between 2022 and 2050, most of which would need to be dedicated to green energy sources. In 2022, annual investments in energy amounted to $70-billion, of which nearly 60% were derived from oil and gas activities. By 2050, the annual investment required is expected to more than double to $160-billion, with the focus of investment likely shifting to an expected 43% of capital expenditure spent on hydrogen, 38% on renewables, and 17 percent on power transmission, distribution and mini-grids. The African clean hydrogen potential represents a major opportunity for growth, employment and innovation. Stakeholders across the public and private sectors, both domestically and internationally, will have a critical role to play in moving Africa and the countries across it toward a sustainable energy future. The opportunity for Namibia Hydrogen as a catalyst to propel green industrialisation across the African continent is emerging as a multifaceted solution that aligns to domestic, regional, and global agendas. By capitalising on its renewable energy potential and strategic geographic location, Namibia can spearhead the development of a green industrial ecosystem that not only supports its own economic objectives but also contributes to broader regional and global sustainability goals. If executed diligently, it represents a pathway to overcome its structural economic constraints while simultaneously fostering high-skill job creation, increased productivity, market expansion, and foreign direct investment. Central strategies include promoting export development, enhancing efficient production, ensuring external debt sustainability, and developing an integrated industrial strategy. Namibia’s own Green Industrialisation Blueprint also highlights the importance of modernising agriculture, empowering women and disadvantaged groups, and fostering a highly skilled and productive labour force. To avoid the potential pitfalls identified by its founding fathers and enshrined in Vision 2030, Namibia must reduce its reliance on the primary sector and adopt policies that promote economic diversification and resilience.

Bridging the gap: How AI is transforming financial planning in South Africa

By Jessie Taylor The financial landscape in South Africa is undergoing a profound transformation driven by the integration of artificial intelligence (AI) into financial planning. From personalised recommendations to risk management, AI technologies are reshaping how individuals, businesses, and public institutions manage their finances. With applications ranging from generative AI-powered advisory to predictive analytics, the rise of AI signals a new era of efficiency, inclusivity, and innovation. Personalisation at scale One of AI’s most significant contributions to financial planning is the ability to provide personalised advice at scale. Traditional financial planning often relied on one-size-fits-all solutions, but AI-powered tools now offer tailored insights based on an individual’s unique financial profile. To craft customised plans, these tools analyse vast datasets, including spending habits, investment history, and income patterns. For instance, generative AI can simulate various financial scenarios, offering suggestions for optimising returns while managing risks. This technology not only improves customer experiences but also deepens engagement by addressing specific financial goals. By understanding each user’s unique financial circumstances, AI helps ensure their plans are both realistic and achievable. Financial decisions can be overwhelming, especially when considering complex investments or retirement planning. AI simplifies this process by providing actionable insights and recommendations. Algorithms can predict market trends, assess risk levels, and even suggest optimal times to make financial moves. Platforms like robo-advisors employ these capabilities to make investment management accessible and affordable for the average person. Predictive analytics have become a cornerstone of financial planning. They allow individuals and organisations to anticipate future financial challenges and opportunities, making long-term planning more effective. AI fosters confidence in financial decision-making by empowering users with accurate and timely data. AI has the potential to democratise financial planning, making services accessible to previously underserved communities. In South Africa, where economic disparities remain a challenge, AI tools are bridging the gap. Mobile apps and digital platforms powered by AI provide affordable and user-friendly financial advice, enabling more people to take control of their financial futures. These tools are particularly beneficial in improving financial literacy. By delivering insights in simple, relatable terms, AI-powered platforms empower users to make informed decisions, regardless of their financial expertise. This accessibility helps level the playing field, fostering economic inclusion across the country. A new frontier of financial planning AI has revolutionised the customer experience in financial services. Chatbots and virtual assistants powered by natural language processing are commonplace, providing instant support and guidance. These tools enhance efficiency, allowing users to resolve queries or access information without long wait times. Generative AI also enables dynamic interactions that feel more personalised and human-like. This technology reshapes how financial institutions engage with their clients, improving satisfaction and loyalty. For public sector leaders, adopting such tools can enhance service delivery and build stronger relationships with stakeholders. Retirement planning is another area where AI is making a significant impact. Traditional methods of retirement saving often fail to account for dynamic factors such as changing market conditions, inflation, and life expectancy. AI-driven platforms address these gaps by continuously analysing data and adjusting recommendations. In addition, AI also plays a critical role in identifying and mitigating risks. In financial planning, risk management is paramount, whether it involves securing assets or ensuring compliance with regulations. AI systems excel at analysing vast amounts of data to detect anomalies and flag potential risks or fraudulent activities in real time. AI is transforming financial planning in South Africa, offering unprecedented opportunities for efficiency, personalisation, and inclusion. Emerging technologies such as machine learning, block chain integration, and quantum computing promise to further enhance the capabilities of financial tools. As these innovations become mainstream, the financial planning process will become even more seamless, efficient, and personalised. By leveraging AI-powered tools, individuals and institutions alike can optimise their financial strategies, mitigate risks, and achieve long-term goals. However, realising the full potential of AI requires a commitment to ethical practices, regulatory oversight, and ongoing innovation. As AI continues to evolve, its impact on financial planning will undoubtedly grow, shaping a more dynamic and inclusive financial ecosystem for all South Africans. Sources: Tech Financials  |  FA News  |  Wonga  |  Forvis Mazars

The financial resilience imperative

By Chipo Mushwana, Executive of Emerging Innovation and Payments at Nedbank In today’s rapidly evolving landscape, businesses and individuals alike are confronted with persistent challenges and continuous change. The global environment is characterised by economic volatility, geopolitical instability, technological disruptions, and complex social dynamics. This intricate environment demands strong financial readiness to manage unexpected events and the capacity for quick adaptation. Consequently, the criticality of financial resilience is paramount for ensuring stability and success in the face of such unpredictability. Financial resilience has thus transcended beyond being a mere safeguard; it has become an essential strategy for ensuring long-term financial health, prosperity, and growth. For individuals, this resilience equates to the ability to absorb economic impacts, such as escalating living costs, unforeseen bills, or a sudden loss of income. For enterprises, it involves the capacity to adjust to evolving market dynamics, effectively navigate risks, and bounce back quickly from setbacks. The cultivation of financial resilience yields numerous benefits. For individuals, it affords a sense of security, enhanced financial autonomy, and the capacity to remain steadfast in achieving long-term ambitions despite any temporary obstacles. For organisations, resilience engenders operational stability, bolsters competitive edge, and empowers them to seize opportunities, even amid economic adversity. Moreover, a financially robust society is better positioned to withstand economic turbulence, mitigating the severity of financial downturns and fostering sustainable economic expansion. In the context of South Africa, the establishment of a resilient society is a critical foundation that can stimulate innovation and cultivate a more predictable climate for economic progress and attractiveness to global investors. Central to fostering financial resilience is the essential social contract between financial institutions and their clientele. Banks are instrumental in equipping individuals and enterprises to navigate economic fluctuations. This is the expectation that consumers and corporate clients have of their financial institutions—to serve as guardians of their fiscal wellbeing and reliable allies in their pursuit of financial stability and resilience. This trust-based expectation affords banks both an obligation and an opportunity to develop products and services that reduce the burden of financial decision-making for their customers. The most obvious manifestation of this social contract is in the form of personalised solutions that help customers transact, save, reduce debt, and manage their finances more effectively. However, it’s a responsibility that extends beyond products. It requires a commitment to financial education, transparent communication, and the development of tools that empower customers to make informed financial decisions. By creating this collaborative relationship, banks can, and should, play a transformative role in building a more resilient financial ecosystem that benefits everyone. Innovation’s crucial role in financial resilience The pivotal function of innovation and technology in cultivating financial resilience is indisputable. Fintech solutions have established themselves as robust platforms, offering more accessible and secure financial services that enhance stability and adaptability for individuals and enterprises alike. Nedbank, a vanguard of resilience-centric digital innovation, has consistently acknowledged the significance of transcending mere technological novelty. Our pioneering payment solutions, such as the Nedbank Tap on Phone POS – the inaugural soft POS system in Africa – are instrumental in equipping SMEs with the tools necessary for sustainable growth and resilience. Similarly, Nedbank’s introduction of WhatsApp payments, another African first, bolstered resilience by streamlining the payment process for users. Our recent innovation, the AVO Super App, continues this trajectory by enabling merchants to tap into new markets of unprecedented scale and reach, further demonstrating how technology can fortify resilience and open up new possibilities for growth. Financial resilience is a ‘team sport’ While banks and other financial institutions have a key part to play in helping individuals and businesses become financially resilient, they can’t do it on their own. Resilience is a shared responsibility that requires commitment and dedication from all parties. There are several essential steps that any person or business should be taking to begin their resilience journey: At the very least, for individuals, these include the following: For businesses, financial resilience rests on the following pillars: The journey to financial resilience presents challenges, yet through dedicated effort, strategic partnerships, and the adoption of effective tools and perspectives, it is a critical and attainable objective for all South African individuals and enterprises to prosper in a dynamic global landscape. Chipo Mushwana is Executive of Emerging Innovation and Payments at Nedbank