The Policy Innovation Lab, in collaboration with The Presidency of South Africa, hosted a Digital Dialogue in March 2025 to explore the opportunities, risks and strategies for using AI in government. The event brought together the global experts Andrew Cooke, global policy lead for Microsoft’s public sector organisation, Thabo Makenete, head of public policy for Southern Africa at Meta, Shimon Shmooely, head of public affairs and AI policy for emerging markets at Google and Rachel Adams, CEO and founder of the Global Centre on AI Governance.

AI offers the public sector and government the opportunity to improve administrative efficiency, automate routine tasks and improve service delivery through AI tools like chatbots and digital assistants. The speakers highlighted AI’s ability to unlock value from underutilised public data, support real-time service delivery and help small businesses navigate existing legislation and policies. Through investment in AI infrastructure, governments can drive productivity, create jobs, and boost GDP growth, highlighting the tangible economic benefits AI can offer. AI-powered analytics can further strengthen government resilience, helping detect security threats and manage crises.

However, AI adoption comes with risks. Weak regulatory frameworks can undermine transparency and accountability, while AI-driven decision-making may reinforce biases and deepen inequalities. Data privacy is another major concern, particularly regarding security and digital sovereignty. Governments also face procurement challenges and job displacement risks as AI automates tasks. Without reskilling efforts, the workforce could struggle to adapt.

The dialogue outlined imperatives for making the most of AI in government:

• Policy imperatives: Develop clear AI regulations and modernise procurement to ensure responsible and strategic AI investments.
• Societal imperatives: Engage the public, invest in digital skills and design inclusive AI solutions to prevent widening inequalities.
• Innovation imperatives: Strengthen data infrastructure, establish AI testing sandboxes and foster public-private partnerships to drive ethical innovation.

With AI adoption accelerating globally, South Africa must act decisively to shape its own AI trajectory. The discussion underscored the need for clear policies, investment in digital skills and a structured approach to AI innovation. The Presidency and its partners will need to develop regulatory frameworks, update procurement policies and establish public-private collaborations to ensure AI serves the public good. By taking these steps, South Africa can leverage AI to modernise governance while ensuring fairness, accountability and long-term sustainability.