The Consumer Defense Institute (Idec) expresses deep concern about the setbacks incorporated into the new text of Bill 2,338/2023, released today (3), which aims to regulate the use of artificial intelligence in Brazil. Each new version of the text weakens mechanisms of protection for citizens and aligns more with the interests of big technology companies, to the detriment of the rights of the population and national sovereignty.
Increased risks with the new wording
The current proposal drastically reduces safeguards to mitigate the negative impacts of artificial intelligence systems. Among the main points of concern, we highlight:
Facilitation of scams on social networks
The exclusion of the classification of large-scale content distribution systems as high risk favors the proliferation of scams, frauds, and misinformation. This represents a setback in consumer protection and digital environment integrity.
Weakening the fight against child sexual exploitation
The new version of the text presents gaps that hinder the accountability of AI systems used to produce and disseminate content related to child sexual exploitation. The change may make it difficult to hold companies or developers indirectly contributing to the creation or dissemination of this content accountable if the bill is approved.
Risk assessment as a mere ‘best practice’
The text maintains replacing the requirement of a preliminary risk assessment with a mere recommendation of best practices, which undermines the ability to supervise and control damage before it occurs.
Lack of regulation of credit scoring
The persistence of omission regarding credit scoring as a high-risk activity ignores the negative impacts that automated systems can have on consumers’ financial lives, especially the most vulnerable and over-indebted.
Support from Big Tech and the lack of commitment from the Legislative
It is clear that with each new version of the project, more rights are taken away and more support from big technology companies grows for the text. This reflects the strength of the lobby of these corporations, which have managed to shape the bill to favor their commercial interests.
Meanwhile, the Federal Senate demonstrates a concerning complacency with the industrial sector while ignoring the appeals of society that seeks to protect those who need it the most. This stance compromises national sovereignty and hands over the regulatory future of artificial intelligence in Brazil to the hands of the private sector.
What’s at stake?
The PL 2,338/2023, as it stands, fails to establish a robust and balanced regulatory framework that protects the rights of citizens and promotes responsible technological development. The regulation of artificial intelligence should prioritize safety, privacy, and the dignity of the population, and not serve as a blank check for the unrestricted profit of big tech companies.
The Idec appeals to lawmakers to urgently review the project’s text, prioritizing public interest over external pressures. Without that, Brazil runs the risk of being turned into a laboratory for unregulated technological experiments, with devastating impacts on fundamental rights and the country’s sovereignty.
