The Brazilian Association of Artificial Intelligence and E-commerce (ABIACOM) has sent an open letter to the National Congress expressing concern regarding the current text of Bill 2338/2023, which regulates Artificial Intelligence in Brazil. According to the entity, the proposal, which is about to be voted on, poses severe risks to the survival of Small and Medium-sized Enterprises (SMEs) and startups.
The main point of conflict highlighted by the association concerns Articles 35 and 36, which establish joint liability between developers and users of the technology. According to Fernando Mansano, president of ABIACOM, this creates disproportionate legal uncertainty.
“In practice, a small retailer who merely uses a contracted AI tool could be held fully liable for technological failures beyond its control. This risk makes the use of AI unfeasible for SMEs and discourages its adoption,” states the executive.
Beyond the legal risks, the entity warns of the prohibitive compliance costs, such as the requirement for independent audits and complex risk assessments, which, according to ABIACOM, would only be bearable for large international corporations, creating a kind of involuntary market reservation.
