South Africa's National Artificial Intelligence (AI) Policy framework, introduced nearly eight months ago, is finally set to receive public input this April. However, experts warn that the slow progress could have significant economic consequences for the country. The framework, which promotes ethical, inclusive AI development, innovation, talent development, and data protection, has been criticized for its lack of clear direction and regulatory guidance.

According to Nerushka Bowan, a technology and privacy lawyer and founder of LITT Institute, the biggest task is to provide a clear and actionable roadmap to guide the country's AI policy direction and regulatory intent. "At the moment, there is a lot of uncertainty," Bowan said. This uncertainty could lead to South Africa falling behind its peers, such as Rwanda, which approved its national AI policy in April 2023. Rwanda's policy focuses on using AI to drive economic development and improve public services, prioritizing ethical AI development, investment incentives, and infrastructure expansion.

Without a comparable roadmap, South Africa risks missing out on the projected $1.5 trillion contribution of AI to Africa's GDP by 2030. Daniel Novitzkas, group director at Specno, a South African digital solutions company, emphasized that South Africa needs to finalize its AI policy framework to provide clarity on government intent and future legal obligations. "We do not have many years to debate the way forward," Novitzkas said. "Investors want to know what the landscape looks like. Early movers often gain a first-mover advantage."

The lack of clarity does not just deter investors; it also risks driving local AI talent abroad. Countries with well-defined AI policies, such as the U.S., U.K., and Canada, actively attract skilled professionals with funding incentives, research grants, and AI-friendly regulations. "The people capable of building AI solutions for our economy need the right tools, information, and regulations to thrive here. Otherwise, we risk losing them to the US, Europe, and China," Novitzkas warned.

Wendy Rosenberg, director, head of digital media and electronic communications practice at Werksmans Attorneys, highlighted that South Africa's AI framework covers critical areas like data protection, privacy, governance, and transparency. However, the delay is problematic. "These issues are critical in ensuring AI development and deployment align with South Africa's legal and ethical landscape," Rosenberg said. "However, it is crucial to finalize the policy framework as it sets the foundation for detailed policies that will be established for various sectors."

Rosenberg also emphasized the need to address ethical and bias concerns in AI development. "AI systems use personal information for various purposes – training AI models, personalization, and analytics," Rosenberg said. "This makes transparency and user control vital." She noted that global best practices such as human-in-the-loop systems, bias evaluation processes, and diverse data sampling should be implemented to mitigate these risks.

A risk-based approach, similar to the European Union's AI Act, could be the way forward for South Africa. This approach imposes stricter regulations on high-risk applications while allowing more flexibility for low-risk AI. For AI policy implementation to be successful, a phased approach will be necessary, alongside ongoing legislative updates and monitoring mechanisms. "The challenge always is the law keeping up with technology. What we need is principle-based, future-ready legislation," Rosenberg said.

In conclusion, South Africa's AI policy framework needs to strike a balance between oversight and technological growth. If done correctly, AI could become a major driver of investment, job creation, and digital transformation. However, if the country fails to provide a clear and actionable roadmap, it risks missing out on the economic benefits of AI and falling behind its peers. The public input review this April is a crucial step towards finalizing the policy framework and unlocking AI's potential for South Africa.