Artificial intelligence (AI) is reshaping the world of work, not replacing jobs, according to a new report.

The Collective X report, ‘Decoding Information and Communication Technology (ICT) Demand 2025: Understanding the ICT market in South Africa’, shows that while AI and automation are changing the nature of many roles, they are also creating demand for new digital skills.

“The ICT sector is growing at nearly three times the pace of the global economy, making it one of the most dynamic and impactful spaces to work in today,” says Collective X evaluation, impact and learning executive Rob Urquhart.

“It is exciting, not only because of the rapid advancements in technologies like AI, the Internet of Things, cloud computing and advanced connectivity, but also because of the immense opportunity to disrupt and transform how we learn, live, work and solve the world’s most pressing challenges.”

The transformation, however, brings uncertainty around the future of skills and livelihoods, particularly in South Africa, where the youth unemployment rate is high.

Most ICT jobs will be affected by AI, with jobs involving standardised processes, such as support technicians and testers, more vulnerable to displacement, as workflows may be easier to code into AI systems.

From a transformation perspective, job requirements are shifting from ‘doing’ tasks to activities such as orchestration, curation, innovation and alignment.

According to the report – compiled with research partners PNET and Career Junction, OfferZen and Predictive Insights – employers are increasingly seeking staff who can work alongside AI tools, interpret data and adapt quickly in technology- enabled environments, making foundational digital fluency, problem-solving and applied learning more important than ever for early-career talent.

“Contrary to the perception that entry-level roles are vanishing owing to automation, the data shows strong and growing demand for junior talent in roles like software development, business analysis, information technology support, cybersecurity and systems administration.

“Digital jobs in South Africa hold significant potential, not only to create employment opportunities for young people but to provide opportunities that can be truly economically transformative for them.”

It is estimated that the number of ICT jobs in South Africa in 2024 stood at 318 000, with a vacancy rate of 27.2%.

Research from Collective X, which highlights both the potential and challenges for absorbing young people into South Africa’s digital jobs, reveals that, of the 118 000 digital roles that remain unfilled across the country, more than 41 000, or 36%, are suitable for junior professionals.