Companies seeking to use AI technology in their businesses domestically or abroad are being urged to closely track developments in AI legislation and regulation this year, as 2023 will likely see the adoption of the most AI legislation in history – particularly in the United States and European Union.
Without doubt, Artificial Intelligence (AI) and Machine Learning stand as the most significant technological advances of this era. And just as the regulation of computer use and security could not keep pace with the pervasive growth in the adoption of computers in the 1980s, so today we are seeing the same inertia in the regulation of AI.
The United States has taken positive steps in regulating AI and begun monitoring developments by establishing an advisory committee that is tasked with “advising the President and the National AI Initiative Office on topics related to the National AI Initiative”. The committee is expected to play a paramount role in the drafting and implementation of AI regulatory legislation.
The regulation of AI would be beneficial to all industries, not only to increase productivity and boost the economy but also to implement the necessary mechanisms to ensure the safety and security of companies and individuals. Moreover, it is imperative to manage AI to create clarity of vesting of intellectual property rights vesting in the technology.
AI technology is rapidly becoming more accessible to the public. AI may bring useful insights into markets, customers, and corporate processes while also assisting in the automation of routine tasks.
At present in South Africa, there is no regulatory body that has been appointed to oversee the development and use of AI, even though challenges posed by AI have been identified by some government departments as one of the ‘critical risks’ that need to be managed in order to ensure the safe, responsible and efficient use of AI.
In the meantime, various stakeholders in South Africa have taken steps to ensure the responsible use of AI. For example, the South African Reserve Bank (SARB) has established a Financial Technology (fintech) unit to explore the implications of fintech innovation for the SARB and financial services in South Africa in a structured, organised and proactive manner. The main goal of the fintech unit is to respond to the rapidly changing technological environment with agility, flexibility and speed by assessing how financial services innovation driven by technological developments impact on policies and regulations, and to assist in aligning policies and regulations with emerging innovation when required.
The regulation of AI in South Africa is still in its early stages. But with the work already being started by various stakeholders, it is hoped that the country is well-positioned to ensure that AI technologies are developed responsibly and used safely.
This will be essential for South Africa to maximise the potential benefits that AI can bring while minimising related risks. With the continued efforts of these stakeholders, it is hoped that a comprehensive regulatory framework will soon be established in South Africa enabling the responsible use of AI in the country. Fortunately, as was the case with the development of data privacy legislation (POPIA), South Africa benefited from observing the development and implementation of similar systems such as GDPR in Europe – so provided that any emerging legislation does not violate South Africa’s Constitution, a similar route can be taken by lawmakers.
By Stefaans Gerber | Senior Associate
And Khotso Mokitimi | Candidate Attorney
