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AI, ESG, LRA, POPI, and BCEA may be unwieldy acronyms to many, but the business world is fast waking up to their impact on reputations, bottom lines and the need for social justice.

Zaeem Soofie, a senior partner at Dentons in SA, the world’s largest law firm, told the recent HR Leadership Summit at the Sandton Convention Centre that it is essential for business leaders and HR professionals to familiarise themselves “with what is coming down the tracks”, citing recent changes to the Employment Equity Act (as amended) and designated groups, the Companies Act in respect of remuneration disclosures and approvals and the AI Policy Framework published by the Department of Communications and Digital Technologies, as well as experiences in other markets.

“What’s more is that if you see it as a tick box exercise, it will amount to nothing more than malicious compliance, defeating the objectives of sustainable progress and transformation.”

Among the significant changes will be how the law, HR, and companies manage the “rise of the machine” (AI, or artificial intelligence) which has seen the globalisation of the labour market, job redistribution and a heightened need for risk detection and mitigation in systems and processes where large fines and reputational harm loom for those who get it wrong. Added to this is the continued need for social justice and salary equity in the workplace and a balanced approach to workplace policy and corporate financial and strategic planning.

For instance, many people do a Google search on AI and realise they must contend with a “data mountain”.

“The risks are high if wrong decisions are made on how this new technology is harnessed across an organisation,” said Zaeem.

Moreover, drafting more specific AI regulations and transforming existing legislation is a pressing concern. South Africa has no existing legislation or regulatory framework to govern the use of AI. Thus, South Africa is heavily dependent on the application of data protection legislation for the regulation of AI. AI regulation in South Africa is presently enforced through the Protection of Personal Information Act (POPIA), the Consumer Protection Act, the Electronic Communications Act, and the Electronic Communications and Transactions Act, among others.

Social justice

The department of communications and digital development recently published the draft National AI Policy Framework for public input.

Zaeem said that while the Framework lays out 12 strategic pillars and charts a progressive way forward into the AI economy, including recognising the critical need for transparency and the avoidance of data processing bias, it is only the start—it is expected to be followed by a policy document and new or amended laws and regulations to support the steps regulators, enterprises and individuals should take to participate in the AI economy

“With data, machine learning and AI reshaping the business world, it is important to get ahead of these changes and not be taken by surprise. The mobile economy will open up many new avenues for work that will need to be managed and legally protected,” he said.

Zaeem went on to say that the drive for social justice, transparency, and pay equity continues, and executives in particular need to be fully aware of them. The days of hundred-fold pay disparity between lowest and highest paid employees may well be drawing to a close he said given the marked shift globally and the ever present challenges locally in wage negotiations, restructuring and retrenchments over the years.

In this regard, President Cyril Ramaphosa recently signed the Companies Amendment Act into law. This law is directly linked to the Employment Equity Amendment Act, 2022, particularly section 27, which refers to the statement of income differentials required from designated employers. Companies will need to disclose the average and median total remuneration of all employees, the remuneration gap between the total remuneration of the top 5% highest paid employees, and the total remuneration of the bottom 5% lowest paid employees.

 

 

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