The European Union (EU) has taken a significant step in regulating artificial intelligence by implementing, since August, the first comprehensive legislation on the subject, known as the AI Act. This new regulation, which will be fully applicable from 2026, establishes strict standards for the development and use of AI systems in European territory, aiming to ensure safety, ethics, and respect for fundamental rights. The EU initiative could set a precedent for other countries, including Brazil.
The AI Act adopts a risk-based approach, classifying AI systems into different categories, from minimal risk to unacceptable risk. This methodology sets a new global standard and may prompt other countries to expedite their own regulations. In Brazil, the topic has been under discussion in parliamentary chambers since 2020, and more recently, Bill 2,338/2023 (PL AI) started discussing regulation with a similar approach, showing how the country can follow the EU’s footsteps.
Alan Nicolas, an AI expert for businesses and founder of the Lendár[AI] Academy, sees the new European legislation as a signal for all countries without specific laws for artificial intelligence. “The implementation of the AI Act in Europe is a milestone that highlights the need for Brazil to advance its own AI regulation. If we do not keep up with this trend, we may face challenges not only in adapting to international rules but also in ensuring that our companies are aligned with global governance and security practices,” explains the expert.
Consequences of Legislation
The impact of the AI Act can be profound, especially for companies operating in global markets or using AI systems developed outside of Brazil. The new legislation from the European Union establishes clear guidelines on transparency and security of artificial intelligence systems, issues that are also being discussed in the Brazilian context.
As pointed out by Alan Nicolas, local companies have already started to anticipate regulatory changes. “Many corporations in Brazil are preparing, with some even developing AI impact reports and adjusting their practices to align with future legal requirements,” he lists.
In addition, the new European legislation imposes penalties for non-compliance with its provisions, something that is also being considered in the Brazilian AI PL. In the EU’s case, fines can reach up to 7% of the company’s global turnover, reinforcing the need for a strict and quick adaptation by companies that need to operate in compliance with these new standards.
Path to Regulation in Brazil
With the approval of the AI Act, the pressure on Brazil to establish its own regulatory framework increases. This urgency is mainly evidenced by the fact that the largest country in South America is among those with the most internet users globally, behind only China, India, the United States, and Indonesia. In Latin America, Brazil leads, followed by Mexico and Argentina.
The PL AI can still be voted on this year and brings elements inspired by European regulations, such as risk classification and the civil liability of AI system providers. “Brazil has the opportunity to create robust, modern legislation aligned with the best global practices. This will help promote innovation and ensure that technological advances are used ethically and safely,” concludes Alan Nicolas.
Implementing legislation in Brazil will be important to protect citizens’ rights and promote a sustainable innovation environment. With the global trend set by the AI Act, the expectation is that other territories where regulation is already underway will follow the European Union’s lead, creating a framework that balances innovation with responsibility.
