Earlier this year the government launched its National AI Policy Framework, a strategic initiative to harness artificial intelligence (AI) for public value and socioeconomic advancement.
The policy positions AI as a tool to enhance decision-making, improve public services and foster innovation across sectors. However, a recent EY survey, conducted with Oxford Economics and involving nearly 500 senior government executives across 14 countries, shows a significant obstacle: while governments globally recognise AI’s transformative potential, a substantial implementation gap hinders progress.
For SA, closing this gap is a strategic necessity to meet rising citizen expectations and sustain public trust amid fiscal constraints and complex developmental needs. The EY study underscores strong optimism among government leaders. More than 60% believe AI will deliver significant cost savings and enhance public services, with a similar proportion anticipating that generative AI will revolutionise operations within five years.
SA’s AI framework reflects this ambition, emphasising human-centred AI that supports evidence-based policymaking and promotes fairness in application. Yet, deployment lags significantly. Only 26% of surveyed organisations have partially or fully implemented AI, and just 12% have adopted generative AI solutions. This implementation gap — where ambition outpaces action — demands immediate attention to prevent missed opportunities.
SA’s policy framework, while forward-thinking, faces practical challenges that mirror global trends. It lacks robust integration with existing policies, limiting its coherence with broader governance structures. It offers insufficient strategies to address the digital divide, where data affordability and reliable connectivity remain significant barriers for many citizens.
In addition, the framework does not fully explore AI’s potential to drive economic growth or its role in global supply chains, and it remains vague on funding mechanisms and implementation timelines. These shortcomings risk undermining the policy’s effect, aligning with the survey’s warning that inaction could lead to operational inefficiencies and diminished public confidence.
The consequences of delay are considerable. Slow AI adoption could exacerbate service delivery gaps, strain fiscal resources and hinder SA’s ability to provide efficient, accessible services. In a nation with pressing socioeconomic demands, hesitation may impede progress in critical areas such as healthcare, education and infrastructure, where AI could deliver transformative outcomes.
The survey highlights “pioneers” — public sector organisations that have successfully bridged this gap. Victoria state’s department of transport and planning in Australia uses an AI-powered data platform to integrate transport data, providing predictive insights that improve management and commuter experiences.
Singapore’s Energy Market Authority employs AI to forecast energy demands, strengthening infrastructure planning. These pioneers prioritise robust data systems, digitised processes and partnerships to address skill shortages, demonstrating that a balanced approach to technology and organisational readiness is essential.
SA’s own pioneer, the SA Revenue Service (Sars), exemplifies AI’s potential. Sars leverages AI-driven analytics to detect fraud and tax evasion, enabling precise, targeted audits. Predictive models assess compliance risks, optimising resource allocation, while automation of routine tasks such as tax return processing, allows staff to focus on complex issues.
Plans to integrate AI with other government systems will enable Sars to enhance data sharing and enforcement, aligning with global best practices. These AI initiatives strengthen fiscal stability, critical for funding social programmes, and illustrates SA’s capacity to lead in AI adoption. However, scaling such efforts across other sectors remains a pressing priority.
The survey identifies barriers that SA must address: privacy and security concerns, misaligned strategies, inadequate infrastructure and ethical considerations. Pioneers, with their implementation experience, recognise these challenges more acutely, suggesting that complexity emerges through practical engagement. SA’s digital divide and shortage of AI-skilled professionals underscore the need for targeted interventions.
To address these challenges, SA can adopt a multifaceted approach. Encouraging public-private partnerships can leverage private sector and academic expertise, accelerating AI innovation. Investing in AI-focused education, from primary to tertiary levels, will equip the workforce for the digital economy.
Supporting local AI start-ups through grants and mentorship can foster innovation and job creation, amplified by private-sector collaboration. Pilot projects in healthcare, agriculture and education can demonstrate AI’s benefits, building momentum for broader adoption.
Engaging in international collaboration with global organisations can enhance capabilities through shared knowledge and best practices. By addressing privacy, security, and ethical concerns, these strategies can create a robust AI framework that drives innovation, economic growth and social development.
Public trust is critical to this effort. The EY study notes that nearly half of citizens across 15 countries have recently used AI-driven government services, indicating growing acceptance.
However, trust depends on transparent data practices and ethical frameworks that mitigate bias. SA must prioritise these to ensure AI serves the public interest while addressing privacy concerns, fostering confidence in AI-driven services.
Globally, the 14 countries surveyed — including Australia, Canada and the US — face similar pressures: fiscal constraints, workforce shortages and geopolitical complexities. AI offers a pathway to address these, but only with decisive leadership. SA pioneers, such as the SA Revenue Service, demonstrate that progress is achievable.
AI could optimise healthcare delivery in underserved areas, predict agricultural yields to support farmers, or enhance access to quality education, aligning with proven use cases like AI chatbots for citizen engagement or predictive analytics for resource allocation.
The EY study calls for immediate action. For SA, the implementation gap is both a challenge and an opportunity. Delaying risks undermining the government’s ability to fulfil its responsibilities. A strategic approach — built on data foundations, partnerships and a commitment to trust — can unlock AI’s potential to improve services, efficiency and public confidence.
The nation’s future depends on decisions made today.
• Hlophe is EY partner and Africa government & infrastructure industry leader.
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