In the global scenario of technological advancements, the regulation of artificial intelligence (AI) is emerging as a crucial issue, with transcendental implications. Last March 13, the European Parliament approved the Artificial Intelligence Regulation (AI Act), a historic milestone in the sector’s legislation. This pioneering legislation establishes comprehensive guidelines for the development, sale, and use of AI systems in the European Union, with the aim of ensuring that these technologies respect fundamental rights and ethical principles.

In Brazil, the most discussed bill in the field of AI is Bill (PL) 2.338/23, which is currently being discussed in the Federal Senate. Inspired by the European AI Act, this bill seeks to establish comprehensive national regulations for the development and use of AI in the country. However, the debate over Bill 2.338/23 reflects concerns about the need to balance the protection of individual rights with stimulating innovation and economic growth.

The European regulation is structured around risk assessment, distinguishing among minimum, limited, high risk, and prohibited practices. This classification will direct the application of specific rules for AI technologies, including a ban on the use of AI to manipulate human behavior that could pose risks to the user or others, as well as the exploitation of vulnerabilities, real-time biometric recognition in public spaces, and subliminal manipulation techniques.

In the context of penalties, the AI Act provides for fines for violations of its provisions, calculated on the basis of the annual global turnover of the offender or an amount fixed in advance, whichever is higher.

Although the debate on this subject is still underway in Brazil, Brazilian companies operating in Europe as AI developers or users shall act in accordance with the new rule. This is due to the extraterritorial nature of the European AI Act, which extends beyond the borders of the European Union. In other words, any Brazilian company that develops or uses AI systems with an impact on the European Union may be required to comply with the requirements stipulated by the European regulation and be subject to possible sanctions.

Other countries, including Brazil, can be expected to accelerate their regulatory efforts in AI after the EU’s sanction of the AI Act – using the new legislation as a reference, in order to align their legislation with international standards and promote greater legal certainty for companies and individuals.

In Brazil, AI-related issues are currently considered within a legal framework that does not explicitly contemplate AI, such as the Consumer Protection Code, the General Personal Data Protection Law (LGPD), the Civil Code, and intellectual property legislation.

The future of legislation on artificial intelligence will not only shape the development of the sector, but will also have significant repercussions on various aspects of society, from ethics to the economy and digital security. In view of that, it is essential that Brazilian companies that act as providers or users of AI technologies begin to effectively prepare for the regulation of this matter.

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For more information on the above or other matters, please contact Maristela SA Rossetti (mar@rraa.com.br) or Gilberto Rossetti (gmr@rraa.com.br).

This article is based on publicly available information and given for informational purposes only. It is not intended as legal advice foreign subsidiary as a comprehensive analysis of the matters referred to herein.