Global AI Policy Updates to Know in 2025

As artificial intelligence (AI) continues to reshape industries and societies, governments worldwide are racing to establish regulatory frameworks that balance innovation with ethical and societal considerations. In 2025, several key AI policies, including the European Union’s AI Act and the African Union’s Continental AI Strategy, are set to influence global AI governance. South Africa, as a regional tech leader, is also advancing its AI policy framework while leveraging its robust data privacy laws. These developments, discussed at the AI Summit South Africa 2025, have significant implications for developers and small to medium businesses (SMBs). Below is a summary of these policies, their impact, and how South Africa’s data privacy laws intersect with these global trends.

EU AI Act: A Global Benchmark

The European Union’s AI Act, enacted in July 2024 and entering full effect by August 2026, is the world’s first comprehensive AI regulation. It adopts a risk-based approach, categorizing AI systems into four risk levels: unacceptable, high, limited, and minimal. Starting February 2025, bans on high-risk practices, such as predictive policing and biometric identification in public spaces, will take effect. High-risk AI systems, like those used in healthcare or hiring, face stringent requirements, including transparency, accountability, and human oversight. Non-compliance can result in fines up to 7% of global annual turnover, compelling developers and SMBs to prioritize compliance.

For developers, the EU AI Act sets a precedent for global standards, requiring robust documentation, risk assessments, and explainability in AI systems. SMBs, particularly those operating in or exporting to the EU, must adapt to these regulations to avoid penalties, which could strain limited resources. However, the Act’s clarity fosters trust, potentially encouraging investment in compliant AI solutions.

African Union’s Continental AI Strategy

Endorsed in July 2024 by the African Union (AU) Executive Council, the Continental AI Strategy provides a unified framework for AI governance across 55 member states, aligning with Agenda 2063 for inclusive and sustainable development. The strategy, set for formal adoption at the AU Summit in February 2025, emphasizes five focus areas: harnessing AI benefits, building capabilities, minimizing risks, fostering cooperation, and stimulating investment. Its phased implementation (2025–2030) prioritizes governance frameworks, national AI strategies, and infrastructure development, including broadband and high-performance computing.

For African developers and SMBs, the strategy encourages local innovation by promoting AI startups and research hubs. However, challenges like limited internet access (28% of South Africans lack connectivity) and data sovereignty concerns—due to reliance on foreign data centers—could hinder adoption. The strategy’s call for data localization and ethical AI development aligns with Africa’s need to protect its data as a national asset, as exemplified by Rwanda’s Vision 2025 policy.

South Africa’s AI Policy Framework and Data Privacy Laws

South Africa’s National AI Policy Framework, released in August 2024 by the Department of Communications and Digital Technologies (DCDT), is under public consultation until November 2025, with gazetting expected by April 2025. Built on nine strategic pillars—talent development, digital infrastructure, ethical guidelines, and privacy protection—it aims to position South Africa as an AI leader in Africa. The framework draws inspiration from the EU AI Act but emphasizes a human-centered approach tailored to local challenges, such as the digital divide and historical inequities.

South Africa’s Protection of Personal Information Act (POPIA), fully effective since July 2021, is a cornerstone of its data privacy regime. POPIA regulates the processing of personal information, requiring explicit consent for data transfers abroad and robust cybersecurity measures. For AI developers, POPIA mandates secure data handling and transparency in AI systems, aligning with the AU’s and EU’s emphasis on privacy. SMBs using AI for customer data analytics or personalized services must ensure compliance to avoid fines up to ZAR 10 million or legal action, which could disproportionately impact smaller firms with limited budgets.

Implications for Developers and SMBs

Developers: The EU AI Act’s global influence means South African developers targeting international markets must align with its risk-based standards, increasing development costs for compliance but fostering trust in their products. The AU strategy and South Africa’s framework encourage local AI solutions, particularly in sectors like healthcare and agriculture, but developers face challenges in accessing high-quality datasets and computing resources. POPIA’s strict requirements necessitate integrating privacy-by-design principles, such as anonymization and secure data storage, into AI systems.

SMBs: For SMBs, compliance with POPIA and emerging AI regulations requires investment in training and legal expertise, which may strain resources. However, the AU’s focus on investment and South Africa’s skilling initiatives, like Microsoft’s $300M AI investment, provide opportunities for SMBs to access training and funding. Those leveraging AI for efficiency—e.g., in retail or logistics—can gain a competitive edge, but failure to comply with privacy laws risks reputational and financial damage.

AI Summit South Africa 2025: Shaping the Future

The AI Summit South Africa 2025, held from November 12–14 at Tsogo Sun, Monte Casino, Johannesburg, served as a critical platform for discussing these policies. The event brought together global AI pioneers, policymakers, and industry leaders to explore AI’s role in Africa’s growth. Key sessions highlighted South Africa’s draft AI Policy Framework, the AU’s Continental Strategy, and lessons from the EU AI Act. Workshops offered practical training on ethical AI development, while the exhibition showcased AI tools tailored to African needs. The summit emphasized the need for regulatory clarity to attract investment and retain talent, with speakers like Dumisani Sondlo from DCDT stressing Africa’s voice in global AI governance.

Looking Ahead

The EU AI Act and AU Continental AI Strategy set the stage for responsible AI governance, with South Africa’s emerging policies and POPIA providing a local foundation. Developers and SMBs must navigate a complex landscape of compliance and opportunity, balancing innovation with ethical and legal obligations. The AI Summit South Africa 2025 underscored the urgency of cohesive policies to prevent brain drain and ensure equitable AI adoption. As South Africa hosts the G20 Summit in 2025, it has a unique opportunity to advocate for Africa-centric AI governance on the global stage.

What are your thoughts on how these AI policies will impact innovation and growth in South Africa? How can developers and SMBs prepare for these changes? Share your insights in the comments below!

Sources

• ISS Africa: Artificial intelligence regulation in South Africa
• White & Case LLP: AI Watch: Global regulatory tracker – South Africa
• TechCabal: South Africa’s AI policy framework set for public input review
• MIT Technology Review: Africa’s push to regulate AI starts now
• African Business: Global AI Summit on Africa
• White & Case LLP: AI Watch: Global regulatory tracker – African Union
• ITWeb: SA’s National AI Policy framework under construction
• AI Summit South Africa 2025: Event Details
• Brookings: How AI is impacting policy processes and outcomes in Africa
• PolicyVault.Africa: South Africa National Artificial Intelligence Policy Framework 2024
  Patience

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