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Artificial Intelligence regulation project should harm SMEs and startups, according to ABIACOM

The Brazilian Association of Artificial Intelligence and E-commerce (ABIACOM) has sent an open letter to the National Congress expressing deep concern about the impact of Bill No. 2338/2023, a text expected to be voted on soon that establishes rules for the use of artificial intelligence systems in the country.

Representing the productive sector, which drives the digital economy and Brazilian retail, the entity acknowledges the importance of a modern regulatory framework that safeguards fundamental rights. However, it points out that the current wording of the bill creates severe barriers to business operations, especially for Small and Medium-sized Enterprises (SMEs), potentially discouraging innovation and reducing the generation of formal employment.

In the document sent to lawmakers, ABIACOM warns that Articles 35 and 36, by establishing objective and joint liability between AI developers and operators, place small business owners at high legal risk. “In practice, a small retailer who merely uses a contracted AI tool could be held fully liable for technological failures beyond its control. This legal risk makes the use of AI unfeasible for SMEs and hinders hiring,” states Fernando Mansano, president of ABIACOM.

The letter also criticizes the transparency requirements outlined in the text. According to the entity, it is technically impossible to require companies that use AI to provide detailed explanations about systems to which they have no internal access. “The bill ignores the reality of the global innovation chain. Most companies use AI via API, without technical mastery over its architecture. Demanding absolute transparency from those who merely ‘rent’ the technology creates uncertainty and discourages the use of AI in the country,” emphasizes Mansano.

Another point of concern lies in the compliance costs foreseen by the proposal, considered prohibitive for startups and SMEs. Independent audits, risk assessments, and reliability tests would be unfeasible for the majority of Brazilian companies. “Without differentiated treatment for startups and SMEs, Brazil will end up creating an involuntary market reserve for large international corporations. The national entrepreneur will be left behind,” states the entity.

Given this scenario, ABIACOM requests that Congress review the sections deemed critical before the vote. “We advocate for regulation that punishes misuse, not the tool or the entrepreneur. Brazil needs an environment that encourages technology as an engine of productivity and employment, not a bureaucratic system that penalizes those who want to innovate,” it concludes..

The association reiterates that it is available to contribute technically to the improvement of the bill and to collaborate in building balanced regulation, capable of protecting citizens without compromising the development of the digital economy in the country.

E-Commerce Uptate
E-Commerce Uptatehttps://www.ecommerceupdate.org
E-Commerce Update is a benchmark company in the Brazilian market, specializing in producing and disseminating high-quality content on the e-commerce sector.
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