Brazil announces R$ 23 billion investment in AI by 2028, but bureaucracy could halt progress

The federal government has announced the final version of the Brazilian Artificial Intelligence Plan (PBIA), forecasting investments of up to R$ 23 billion by 2028. Coordinated by the Ministry of Science, Technology, and Innovation (MCTI), the initiative aims to consolidate the country's position as a leader in the sector, encompassing pillars such as infrastructure, capacity building, governance, and regulatory support. Among the planned goals is the acquisition of one of the world's five most powerful supercomputers, which is expected to significantly enhance national data processing capacity and advanced AI research.

This move aligns with the global race for the technology, but according to Lucas Mantovani, partner and co-founder of SAFIE, an expert in new business for SMEs and startups,it also exposes internal challenges. According to the expert, while China has over a decade of billion-dollar investments and public-private integration to gain AI leadership, Brazil still faces regulatory hurdles, excessive bureaucracy, and legal uncertainty that may reduce the strategy's effectiveness.

In this scenario, Lucas Mantovaniemphasizes the importance of simplifying rules and reducing entry barriers for entrepreneurs and startups. "The success of the PBIA depends less on the volume of resources alone and more on creating an environment conducive to innovation. The PBIA is a positive signal—it defines pillars, allocates resources, and organizes stakeholders. But the reality is that if entrepreneurs remain trapped in the regulatory 'Brazil cost,' with multiple licenses, overlapping agencies, and legal uncertainty, innovation will not scale," he states.

The lawyer points out that streamlining bureaucracy must go hand in hand with investments. "Simplifying processes is as strategic as injecting capital. This is what attracts investors, retains talent, and ensures new products reach the market competitively," adds Mantovani..