The regulation of Artificial Intelligence (AI) in Brazil has been a topic of increasing importance and debate in recent months, undoubtedly driven by the undeniable technological advancement and growing popularity of AI tools in our daily lives. There has been significant progress in the approval of legislation aimed at balancing technological innovation and the protection of individual and collective rights. In 2024, the Senateapproveda proposal for AI regulation (Bill No. 2338/2023, authored by the current Senate President, Rodrigo Pacheco), which still needs to be discussed and approved by the Chamber of Deputies in 2025. This legislative milestone arises as the world discusses how to handle the rapid technological innovations brought about by AI, and Brazil is not immune to these global issues.
The proposition approved by the senators adopts a stance aligned with European legislation, the EU Artificial Intelligence Act, in effect since July 2024, placing the human being at the center of regulation, aiming to preserve human rights in the face of technological advances, similar to concepts found in the General Data Protection Law (LGPD). This approach aims to ensure that companies operating in Brazil, especially those dealing with AI, prioritize citizens' rights, protecting them from abuses that may arise from the improper or uncontrolled use of emerging technologies, requiring mature internal governance processes within these companies. Brazil also innovates by protecting the copyright of works potentially used for AI platform training, 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 frameworks within companies. In a scenario where large corporations dominate the AI market and other technological advances, the law aims to balance power between tech companies and the need to protect fundamental rights. In this regard, legislation requires a high level of maturity from companies that aim to operate in the area (both as providers and users), placing the responsibility on them to analyze the potential impacts of each tool, adopting the corresponding mitigating measures, which can become a significant challenge for corporations that will need to have a deep understanding of their operations, clients, and partners, and adapt their internal policies to ensure compliance with established standards.
From an ethical perspective, the issue of AI is one of the most discussed in the Brazilian context, gaining relevance in light of the impact of the new United States government under Donald Trump's leadership. There, the president has aligned himself with the big tech companies (the Big Techs) and proposed a discourse that prioritizes the deregulation of AI and technology in general. The impact of such a stance is significant, as by encouraging a deregulation model, Trump could undermine global efforts to pursue a more balanced and controlled approach to AI use. This movement could generate tensions in international markets, with direct implications for developing countries like Brazil, which have been striving to establish stricter regulations but may be confronted with more liberal economic interests.
For Brazilian companies, adopting strict regulation, as proposed, brings challenges and opportunities. While compliance obligations may result in additional costs and administrative requirements, regulation can also create a more trustworthy environment for consumers and investors. The responsibility of companies to look inward and adopt governance policies and measures appropriate to the risks of their operations should not sound entirely unfamiliar to the Brazilian entrepreneur, given that 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, adopting more sustainable internal governance practices has brought a welcome maturity to organizations, being very well received in a highly positive manner 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 somehow 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 revenue sharing for AI-automated productions, significantly changing the landscape of business in areas such as digital content production, entertainment, and advertising, where the use of AI is increasingly prevalent (there are many examples, but I recommend here the Beatles' "most recent" song, "Now and Then," reconstructed with the help of AI). With this, 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 specialists in the technological 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 risks becoming a vulnerable market for uncontrolled AI use, with negative impacts on both consumers and companies.
AI regulation in Brazil will be a turning point in the country's technological development and business environment. Companies will need to adapt their governance, compliance, and ethics practices to meet the new legal requirements, while Brazil can position itself as an example of responsible regulation on the global stage. However, the impact of global trends, such as those adopted by Donald Trump's government, and the pressure from large technology companies, may pose additional challenges, especially if the country fails to effectively balance economic interests and the protection of citizens' rights. It is therefore necessary to closely monitor the debates that will take place on the bill, now in the Chamber of Deputies, and whether the congressmen will be in some way impacted by the stance adopted by the USA.
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 also create a conducive environment for the sustainable growth of AI in Brazil, benefiting companies, consumers, and society as a whole.
