South Africa has withdrawn its first draft national AI policy after revelations that it contained fictitious sources in its reference list which appeared to have been AI-generated.

"The most plausible explanation is that AI-generated citations were included without proper verification. This should not have happened," Minister of Communications and Digital Technologies Solly Malatsi said.

"This failure is not a mere technical issue but has compromised the integrity and credibility of the draft policy," he wrote in a post on X on Sunday.

The policy, unveiled this month for public comment before finalization, sought to position South Africa as a continental leader in AI innovation while addressing ethical, social and economic challenges.

It outlined plans to establish new institutions, including a National AI Commission, an AI Ethics Board and an AI Regulatory Authority, and to create incentives such as tax breaks, grants, and subsidies to encourage private-sector collaboration.

Malatsi said there would be consequences for those responsible for drafting the policy, and did not say when a new one would be released.

"This unacceptable lapse proves why vigilant human oversight over the use of artificial intelligence is critical. It's a lesson we take with humility," he wrote.