Artificial intelligence isn’t just a buzzword anymore. Across industries, it’s becoming a practical tool for solving everyday problems – problems that affect people’s lives in very real ways. From AI reducing fraud in banking to supporting governments in digital identity systems, the technology is shifting from hype to tangible impact.
At BBD, we work closely with clients across banking, government, and the broader private sector. What we’re seeing is clear: when AI is applied thoughtfully, it doesn’t just solve business challenges – it can create real societal value.
What everyday problems is AI already solving?
In South Africa, one of the most exciting areas of progress has been in public sector identity systems. The Department of Home Affairs has spoken openly about partnering with private-sector players, including banks, to make services like IDs and passports more accessible. Initiatives such as ETA (Electronic Trusted Authorisation) show how technology and government can align to reduce friction for citizens.
AI plays a crucial role here. Today, applying for an ID or passport still means physically visiting a branch for fingerprints and photos. For urban citizens this is often just an inconvenience, but for rural South Africans it can mean hours of travel, long queues, and lost income from time away from work.
With AI-driven risk engines, trust can be assessed at the individual level. That means most law-abiding citizens could complete the process online, with higher-risk cases still receiving the right security checks. The result: faster, more inclusive service delivery, while simultaneously tackling fraud, corruption, and identity theft – and critically, broadening access for those who have historically been left on the margins.
Can businesses really keep up with the pace of AI?
For many clients, the challenge isn’t falling behind – it’s chasing too much, too fast. BBD executive Streicher Stegmann relates it to shiny object syndrome. “When new technologies appear, there’s a rush to adopt them, often without asking the most important question: What problem are we trying to solve
Stegmann notes that the organisations that succeed with AI are the ones that keep focus. They pick specific, real-world challenges – reducing fraud, improving customer experience, streamlining back-office processes – and integrate AI into existing systems. Research shows that only a small percentage of AI projects in banking actually make it into production. Almost all of those succeed because they’re solving a clearly defined business problem, not chasing hype.
Is AI still hype, or are clients finding real value?
When large language models first emerged, many businesses wanted AI simply because it was the shiny new thing – it was about being seen to have AI.
But the market has matured. Stegmann explains that his clients now see that AI delivers the most value when it augments existing processes rather than replacing them outright. That shift has brought a new level of pragmatism into the conversation. “Instead of AI for AI’s sake, we’re seeing real solutions emerge that reduce fraud, personalise customer experiences, improve operational resilience, and broaden access to services.”
That shift also reflects a better understanding of the role of data. Businesses are recognising that accurate, representative data is what turns AI from a flashy experiment into a reliable solution. Without it, models risk being biased, brittle, or ineffective – with it, they can truly augment processes and deliver lasting value.
How do we balance business goals with societal good?
Importantly, the majority of BBD’s enterprise clients already aim to tackle real societal issues. If a product or service doesn’t solve a genuine human problem, it risks missing the point entirely.
“Our role,” says Stegmann, “is to refine those solutions so they’re not just commercially viable, but also inclusive, secure and sustainable. That means asking questions like: Will this broaden access? Does it reduce risk? Is it built to last?” In aligning business goals with AI ethics and societal responsibility, technology can become a catalyst not just for profitability, but for positive change.
Final word
AI isn’t a silver bullet, but it is a powerful tool when used with purpose. From helping governments deliver more efficient digital public services, and supporting banks with AI-powered fraud detection, to enabling businesses to focus on solving real-world problems, the opportunity is immense.
The challenge for all of us is to keep AI grounded – less about chasing hype, more about creating value. Done right, AI won’t just transform business. It can help build a more secure, inclusive, and resilient society – one where citizens in rural areas have the same access to services as those in cities, where technology reduces barriers instead of creating them, and where outcomes are driven by relevant, high-quality data that ensures AI models produce fairer, more accurate results.
