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Disrupt or Conform: Striking the Perfect Balance Between Innovation and a Regulatory Landscape

Fasken
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Overview

“Data is the oil of our generation,” said software engineer Jabar Lantam in a discussion co-hosted by The Black Policy Institute and the USC Center on Public Diplomacy earlier this year. It’s a reality very close to the truth and could not have been more aptly described. The focus of the discussion was the rollout, challenges, and opportunities of Artificial Intelligence (“AI”) in Africa. Beyond that discussion, and more importantly, what was filtered out was the need for new laws and practices that safeguard data sovereignty and ensure an ethical rollout of AI in Africa.

AI has tremendous potential to enhance our everyday lives, but it also presents challenges in terms of data integrity, ethical use, and confidentiality. Without adequate regulation, AI poses a massive threat to the existence of the human race as we know it. This may sound dramatic and perhaps even overstated, but a reality driven by AI is not as far-fetched as it once may have seemed. Therefore, it is imperative that a human-centred approach remains the driving force behind leveraging AI. Ultimately, the potential of AI should lie in enhancing human capabilities rather than replacing them.

South Africa is at a pivotal stage to champion the ethical usage of AI and is perhaps even positioned to set a global standard for ethical AI adoption. Given the growing pool of AI talent and the potential for investment in such talent, the net effect will not only drive societal imperatives but will also set the stage for innovation and open new streams of markets. Achieving success here hinges on a stable and supportive policy environment. National regulation is therefore urgently needed to ensure that this new phenomenon is rolled out ethically and used effectively.

In April 2024, the Department of Communications and Digital Technologies (“DCDT”) published an AI Planning Discussion Document (“Discussion Document”) that outlined the future and importance of AI adoption and regulation in South Africa. The Discussion Document included a national AI Plan Map that provided insight into the implementation of AI initiatives in South Africa from 2023 to 2026.

According to the Discussion Document, South Africa raised over 1.6 billion US dollars between 2019 and April 2022 to fund AI initiatives, hailing South Africa as one of the ‘Big Four’ AI investors in Africa alongside Nigeria, Kenya, and Egypt. In 2022, the global AI market was valued at 387 billion US dollars and is expected to reach 1, 394 billion US dollars by 2029. These figures are indicative of the massive growth of the AI economy and the inevitable effect this will have on the AI economy in South Africa, and it cements the need for a robust AI policy to ensure ethical AI use that continues to place South Africa amongst the top runners of AI innovation in Africa.

On 25 October 2024, the DCDT released an Artificial Intelligence Policy Framework (“AI Framework”). The AI Framework can be accessed hereComments and input are to be sent to the following email addresses: (DSondlo@dcdt.gov.za and MMashologu@dcdt.gov.za) by 17:00 on Friday, 29 November 2024.

The Framework emphasises that it is the first step towards developing South Africa’s National AI Policy. It aims to promote the integration of AI technologies to drive economic growth, enhance societal well-being, and position South Africa as a leader in AI innovation. Moreover, it emphasises that such a policy is of paramount importance to ensure the ethical development, deployment, and utilisation of AI, which protects citizens while simultaneously encouraging the adoption of AI and fostering a thriving AI ecosystem in South Africa.

The Framework uses “The Futures Approach to the Development of the National AI Policy,” which considers the push of the present, the weight of the past, and the pull of the future to capture the multifaceted nature of AI and its adoption in South Africa.

The Framework names its strategic pillars for the implementation of a National AI Policy as follows:

Strategic Pillars AI Policy 2
  1. Talent Development/Capacity Development involves developing training programs and integrating AI into educational curricula to ensure South Africa has a robust AI talent pool. 
  2. Digital Infrastructure involves developing supercomputing infrastructure and enhancing digital connectivity to create an AI conducive environment. 
  3. Research, Development and Innovation includes developing research centres, public-private partnerships, funding, and incentives to advance technology and drive innovation.
  4. Public Sector Implementation includes implementing AI in state management and service delivery to enhance government efficiency.
  5.  Ethical AI Guidelines Development involves ensuring AI systems are designed and implemented ethically to ensure the responsible use of AI.
  6. Privacy and Data Protection involves data governance, data protection laws and transparency to safeguard personal information.
  7. Safety and Security involves implementing robust cybersecurity protocols to safeguard AI systems and protect citizens and infrastructure.
  8. Transparency and Explainability involve promoting and developing the AI system, ensuring it is easy to understand and building public trust in AI. 
  9. Fairness and Mitigating Bias involves developing methods to identify and mitigate biases to ensure equitable AI deployment.

This AI Framework demonstrates an honest account of the issues South Africa is currently facing.

The Framework is open for comment to everyone to ensure that any AI Policy implemented on a national level is well-considered and all-encompassing.

Whilst the incoming AI Policy seeks to position South Africa as a leader in AI innovation, Adam Craker (“Craker”), CEO of IQbusiness, states that South Africa has already positioned itself as the future hub of global digital economy growth. Craker further points out that South Africa is witnessing significant transformation with international business opportunities driven by investment from technology giants. Notable investments include Amazon’s plan to establish its headquarters in Cape Town and Microsoft’s establishment of multiple hyperscale data centre locations across the country. This investment pull and interest has placed South Africa front and centre in global conversations on digital transformation and innovation – reinforcing the notion that South Africa is not just a participant in the digital age but a driving force behind its evolution.

Balancing time and priorities can be tricky. With the swift advancement of technology, South Africa must embrace AI to remain globally competitive. However, our issues and needs are unique compared to other countries. As such, we need to exercise balance to ensure that an inclusive approach is followed and that the diverse needs of society are taken into account when formulating any AI policy or legislation.

This bulletin is authored by partner Rakhee Bhoora, associate Barr-Mary Tyzack and candidate attorneys Alyssa Farrand and Ferdinand Pike.

Contact the Authors

For more information or to discuss a particular matter please contact us.

Contact the Authors

Authors

  • Rakhee Bhoora, Partner, Johannesburg, +27 11 586 6076, rbhoora@fasken.com
  • Barr-Mary Tyzack, Associate, Johannesburg, +27 11 586 6012, btyzack@fasken.com

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