StartArticlesRegulation of AI in Brazil: A delicate balance between innovation and protection

Regulation of AI in Brazil: A delicate balance between innovation and protection

The regulation of Artificial Intelligence (AI) in Brazil has been a topic of increasing importance and debate in recent months, driven, without a doubt, due to the undeniable technological advancement and growing popularity of AI tools in our daily lives. There has been a significant advance in the approval of legislation that seeks to balance technological innovation and the protection of individual and collective rights. In 2024, the Senateapproveda proposal for AI regulation (Bill n.º 2338/2023, by the current President of the Senate, Rodrigo Pacheco, that still needs to be discussed and approved in the Chamber of Deputies in 2025. This legislative milestone arises as the world discusses how to deal with the rapid technological innovations brought about by AI, and Brazil is not immune to these global issues

The proposal approved by the senators adopts a position aligned with European legislation, the EU Artificial Intelligence Act, in effect since July 2024, placing the human person at the center of regulation, seeking the preservation of human rights in the face of technological advancements, something that refers to concepts similar to those of the General Data Protection Law (LGPD). This approach aims to ensure that companies operating in Brazil, especially those that deal with AI, prioritize the rights of citizens, protecting them from abuses that may arise from the inappropriate or uncontrolled use of emerging technologies, requesting, for that, mature internal governance processes in these companies. Brazil also innovates by protecting the copyright of works that may be used for training AI platforms, something that has no parallel in European legislation

The regulation of AI in Brazil, by ensuring that the use of these technologies is carried out ethically, also proposes the implementation of robust governance and compliance structures within companies. In a scenario where large corporations dominate the AI market and other technological advancements, the law aims to balance the power between technology companies and the need to protect fundamental rights. In this sense, the legislation requires a high level of maturity from companies that intend to operate in the area (both as suppliers, as users, falling on them the responsibility to analyze the possible impacts of each tool, adopting the corresponding mitigating measures, what can become a great challenge for corporations, that will need to have a deep understanding of their operations, clients and partners, and adapt your internal policies and ensure that they comply with the established standards

In the ethical aspect, the issue of AI is one of the most discussed in the Brazilian context, what gains relevance in light of the impact of the new government of the United States under the leadership of Donald Trump. There, the president has aligned himself with the big technology companies (the Big Techs) and proposed a discourse that prioritizes the deregulation of AI and technology in general. The impact of a stance like this is considerable, because, by promoting a deregulation model, Trump may undermine global efforts for a more balanced and controlled approach to the use of AI. This movement may generate tensions in international markets, with direct implications for developing countries, like Brazil, that have been working to establish stricter regulation, but can be confronted with more liberal economic interests

For Brazilian companies, the adoption of strict regulation, like the proposal, brings challenges and opportunities. If, on one hand, compliance obligations can result in additional costs and administrative requirements, on the other, regulation can create a more trustworthy environment for consumers and investors. The responsibility for companies to look at themselves and adopt governance policies and measures appropriate to the risks of their operations should not sound entirely strange to the Brazilian entrepreneur, considering it has already been adopted in more recent legislation, such as the LGPD and the Anti-Corruption Law (Law 12.846/13). In these examples, the adoption of more sustainable internal governance practices has brought a welcome maturity to organizations, being very well received in a quite positive way by clients and business partners, in an increasingly sophisticated business environment

The creation of a legal framework for AI can also serve as a model for other Latin American nations, positioning Brazil as a leader in the responsible regulation of this technology on the continent. However, it is necessary to carefully assess how companies will be able to adapt to these requirements, especially small and medium-sized enterprises that may face difficulties in implementing the required governance practices

Another relevant aspect is the impact of regulation on copyright in an AI scenario. In a scenario where we are daily impacted by works that have been created or in some way assisted by AI tools. The proposal under discussion seeks to establish a balance between the rights of innovative companies and those of artists whose works are used to "train" AI systems. For example, in the music and entertainment sector, this could redefine royalties and the revenue sharing of automated productions with AI, significantly changing the business landscape in areas such as digital content production, entertainment and advertising, for example, where the use of AI is increasingly present (examples are not lacking, but I recommend here the "most recent" song by the Beatles, "Agora e Depois", reconstituted with the help of AI. With that, companies will need to rethink their monetization strategies and ensure that their business models are aligned with the new legal requirements

The urgency of this regulation is something that continues to be reinforced by experts in the technology and legal sectors in Brazil. In common, it is always emphasized that AI regulation is a fundamental and urgent step to ensure that the technology is used responsibly and beneficially for society. These agents emphasize that, without a clear regulatory framework, Brazil runs the risk of becoming a vulnerable market for the uncontrolled use of AI, with negative impacts for both consumers and companies

The regulation of AI in Brazil will be a turning point in technological development and the business environment of the country. Companies will have to adapt their governance practices, compliance and ethics to meet new legal requirements, at the same time Brazil could position itself as an example of responsible regulation in the global scenario. However, the impact of global trends, such as those adopted by the government of Donald Trump, and the pressure from large technology companies, you can add additional challenges, especially if the country cannot effectively balance economic interests and the protection of citizens' rights. It is necessary, therefore, to closely follow the debates that will take place regarding the bill, now in the Chamber of Deputies, and whether the congress members will be in some way impacted by the stance taken by the US

Ultimately, the success of regulation will depend on its ability to keep up with the rapid evolution of technology without stifling innovation. If implemented correctly, this regulation will not only protect citizens, but it will also create a conducive environment for the sustainable growth of AI in Brazil, benefiting companies, consumers and society as a whole

Emilio Duque Bugs
Emilio Duque Bugs
Emilio Duque Bugs is Data Protection Officer and Legal Director LATAM & USA of GFT Technologies
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