Brazil’s AI Law Faces Uncertain Future
Over the past two years, Brazilian lawmakers have been engaged in extensive debates on how to effectively regulate artificial intelligence. Following months of discussions, the Senate voted on a controversial bill in December, which is now proceeding to the lower house of Congress. The tech landscape has shifted dramatically in the few months leading up to this pivotal moment, particularly with the political changes in the United States.
The Changing Political Climate
In the U.S., the political landscape has been transformed with the return of Donald Trump to office. His administration has rolled back a previous Executive Order on AI, aiming to bolster America’s global AI dominance. This shift in governance has led to increased lobbying from tech leaders, which could significantly impact the trajectory of Brazil’s AI legislation.
The Senate’s ‘Watered Down’ AI Framework
Brazil commenced its regulatory efforts for AI in February 2022, when Senate President Rodrigo Pacheco established a committee of legal experts tasked with drafting a report to guide lawmakers in developing AI legislation. In December 2022, the experts provided a report advocating for a risk-based approach to AI regulation.
Many recommendations from this report were included in a bill proposed by Pacheco in May 2023. A temporary commission was formed to review the draft, which held numerous discussions, public hearings, and sought input from outside experts over a period of 19 months.
In December 2024, the commission approved a watered-down version of the bill, which passed the Senate shortly after. Data Privacy Brazil, an organization focused on data protection, asserted that the legislation still protects fundamental rights and establishes crucial standards for a fair informational ecosystem.
The bill primarily favors a risk-based regulatory model, imposing obligations on developers, distributors, and users of high-risk AI systems to produce risk assessments addressing biases and potential discrimination. High-risk applications include areas such as traffic control, student admissions, hiring processes, and immigration control.
Key Carveouts and Provisions
Despite the regulatory progress, significant lobbying from the tech industry resulted in key carveouts. Notably, algorithms used for curating, recommending, and distributing social media content were exempted from heightened scrutiny, sparing these platforms from increased transparency requirements.
A distinctive feature of the legislation mandates that companies must compensate copyright holders when their content is used to train AI systems. However, it also permits academic institutions to use third-party content for research purposes without the same restrictions.
Comparisons with Global Standards
The Brazilian bill shares similarities with the European Union’s AI Act, which also adopts a risk-based framework. However, analysis indicates that Brazil’s legislation imposes broader obligations on a wider range of actors within the AI supply chain than the EU’s approach, which primarily focuses on developers.
The Role of Big Tech and Lobbying Dynamics
While the AI bill faced opposition from right-wing politicians, the lobbying efforts from tech companies were notably different from previous campaigns against legislation, such as the failed “Fake News” bill. This time, tech companies refrained from openly opposing the AI bill; instead, their critiques were voiced through sympathetic senators and external experts.
Furthermore, a Brazilian delegation, including senators, met with U.S. tech executives, which led to several amendments aimed at weakening the bill. Advocates for a less stringent regulatory approach, supported by Brazilian industry groups, echoed the narrative that regulation could stifle innovation.
Looking Ahead
As Brazil’s AI bill transitions to the Lower House of Congress, civil society anticipates increasing pressure from oppositional politicians and the private sector, particularly from big tech. With the renewed support for Trump amongst Silicon Valley leaders, the upcoming months will reveal how these dynamics will influence Brazil’s regulatory landscape.
In conclusion, Brazil’s experience may highlight the extent to which U.S. tech giants, bolstered by government support, will go to shape global AI regulations in alignment with their interests.
