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Draft SA National AI Policy
- 05 May 2026
- Legal and Compliance
- South African Accounting Academy
The Policy was approved by Cabinet on 25 March 2026, and officially released for public comment shortly before, but has now been withdrawn in late April 2026 by Communications and Digital Technologies Minister Solly Malatsi – well before the intended comments deadline date of 10 June 2026.
In addition, 2 DCDT officials have since been placed on precautionary suspension. The scandal broke after a News24 report.
The policy was pulled after it was discovered to contain "AI hallucinations"—specifically, at least 6 of its 67 academic citations, journals and authors were fabricated in its references. So, this indicated that the policy was compiled using AI tools without proper human verification - rendering it unreliable and unacceptable. It had cleared the highest levels of government, including the President’s cabinet, before anyone checked whether its academic foundation was real.
The blunder is particularly stinging given that the policy was designed to govern the very technology that appears to have sabotaged it.
The publication of SA's Draft National AI Policy marked a turning point for organisations that develop, deploy or rely on artificial intelligence (AI). Beyond signalling the emergence of formal AI regulation, the Draft Policy introduced new expectations around governance, ethics, accountability and sector-specific oversight.
The objective of this policy was the development of a comprehensive, inclusive and ethically grounded national policy that ensures responsible innovation, protects the public interest and advances socio-economic transformation.
The policy itself was ambitious, proposing the creation of 5 new oversight bodies including a National AI Commission, AI Ethics board and a Road Accident Fund-style AI Insurance Superfund to compensate citizens harmed by AI. (An AI Ombudsperson office and AI Safety institute was also proposed).
With no timeline for a revised draft, the scandal leaves South Africa’s digital economy in regulatory limbo and hands the continent a stark warning about unsupervised AI use in government.
The withdrawal also presents an opportunity to:
- Strengthen governance and quality control processes
- Rebuild trust in public policy development
- Ensure future frameworks are robust, credible and fit for purpose
The Draft Policy identified 6 strategic pillars that were central to the development of the final policy and which would have guided sectoral approaches to AI regulation.
Access the 86-page Draft AI Policy at https://www.gov.za/sites/default/files/gcis_document/202604/54477gen3880.pdf
The Draft National AI Policy was based on the South Africa National Artificial Intelligence Policy Framework of August 2024, the 32 submissions received on this Framework available at https://www.dcdt.gov.za/sa-national-ai-policy-framework.html
Click here to download the official withdrawal statement:
https://www.sanews.gov.za/south-africa/minister-announces-withdrawal-draft-ai-policy
Relevance to Auditors, Independent Reviewers & Accountants:
- Draft AI legislation is what your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer and accountant, you should be aware of the latest developments regarding AI as identified by various regulators and newsmakers.
- You also need to consider the latest publications and news articles to keep abreast of changes and important information.
Relevance to Your Clients:
- Entities that must comply with the relevant legislation that is drafted, should be aware of the latest developments regarding AI as identified by various regulators and newsmakers.
- Your clients also need to consider the latest publications and news articles to keep abreast of changes and important information.