The Significance of Regulating Artificial Intelligence in Brazil

Artificial intelligence is changing the world, and Brazil is keeping pace with this transformation. However, significant progress also entails significant responsibilities.

The Bill 2338/2023 (PL 2338/2023) aims to create rules for AI usage, safeguarding basic rights and promoting sustainable progress.

In this text, we will examine the key aspects of PL, its potential consequences, and the importance of strong regulation in Brazil.

What is stated in PL 2338/2023?

PL 2338/2023, also referred to as the AI Legal Framework, aims to establish specific regulations for the application of AI technology in Brazil.

It seeks to guarantee safety, openness, and protection of rights in the advancement and use of this technology.

The project establishes important principles like the importance of individuals, human rights, equality, non-discrimination, and safeguarding personal information.

Let’s take a look:

This legislation establishes broad national guidelines for the advancement, application, and ethical utilization of artificial intelligence (AI) in Brazil to safeguard fundamental rights and promote secure and dependable systems that benefit individuals, the democratic system, and scientific and technological progress.

The creation, execution, and utilization of systems

Artificial intelligence in Brazil is based on fundamental principles.

The importance of the individual is at the core.

Respect for human rights and democratic principles.

III – the unrestricted growth of individuality;

IV – conservation of the environment and promotion of sustainable growth;

V – fairness, absence of bias, diversity, and recognition of workers’ rights;

VI – progress in technology and creativity;

VII – promotion of free enterprise, fair competition, and safeguarding consumer interests;

Privacy, protection of data, and control over personal information.

Promotion of research and development is encouraged to boost innovation in productive sectors and public institutions.

X – information access, education, and awareness.

Artificial intelligence systems and how they are used.

The PL also provides key definitions for artificial intelligence systems, along with their suppliers, operators, and agents.

The crucial aspect of the potential new legislation is focused on outlining the rights of individuals impacted by artificial intelligence (Chapter II, PL 2338/2023) and identifying different types of risks (Chapter III, PL 2338/2023).

AI systems that impact important legal decisions should provide transparent explanations and allow for human evaluations, as stated in sections 9 and 10 of PL 2338/2023.

The PL outlines the responsibilities of “AI agents,” such as developers and system operators, requiring them to conduct detailed risk analyses and be accountable for any harm resulting from their applications (Chapters IV and V, PL 2338/2023).

What changes could occur with the approval of PL 2338/2023?

If approved, the PL will provide more legal assurance regarding the utilization of AI, benefiting both businesses and customers.

This can promote the growth of new technologies in Brazil, drawing investments and positioning the country on the global artificial intelligence stage.

Regulation will also necessitate companies currently selling AI products to adjust their operations to comply with transparency, bias prevention, and data protection standards.

Lawyers specializing in compliance and digital law will be essential in guiding companies to meet new demands.

How can AI support advocacy efforts?

PL 2338/2023: Key aspects

Main aspects addressed in PL 2338/2023 include:

  • AI’s rights impacted: Ensuring entitlements like the right to receive an explanation for automated decisions and the ability to contest those decisions (Articles 9, 10, and 11, PL 2338/2023).
  • AI systems are classified into different risk levels, including high risk and excessive risk. Strict governance measures will be implemented for high-risk applications like medical diagnostics or judicial decisions (Chapter III, PL 2338/2023).

It is worth mentioning that the risk classification in question pertains to the AI Act established by the European Union in 2021, but these categorizations exhibit notable distinctions.

The AI Act covers a wide range of categories, including minimum, limited, high, and unacceptable levels, providing clearer definitions of AI systems and delineating their responsibilities more effectively.

PL 2338/2023 categorizes the risks of Artificial Intelligence into two groups (excessive and high), limiting the detailed regulation of each AI type.

  • Providers and operators will be held responsible for any damages incurred, especially for high-risk systems, under more stringent regulations (Articles 27, 28, and 29, PL 2338/2023).
  • Mandatory steps are required to reduce biases, enhance security, and clarify decisions to users in order to ensure governance and transparency (Sections IV and VI, PL 2338/2023).
  • Controlled environments are set up to test new AI applications with reduced regulatory risk and support the implementation of innovations, as described in Section III, Chapter VIII of PL 2338/2023.

When is the voting scheduled for PL 2338/2023?

The PL 2338/2023 is currently being processed in the National Congress, with the upcoming vote scheduled for December 10, 2024.

Why is AI regulation important in Brazil?

Regulation plays a crucial role in ensuring a balance between fostering innovation and safeguarding fundamental rights.

Brazil is in danger of experiencing unregulated technological progress, leading to privacy breaches, algorithmic bias, and other ethical issues due to the absence of a legal structure.

PL 2338/2023 aims to support the ethical advancement of technology, ensure transparency, prevent harm, and hold developers and operators accountable.

Proper regulation plays a crucial role in dispelling prejudices about AIs and enhancing their accessibility.

PL offers lawyers a strong area of expertise that includes compliance matters, contracts, and consumer rights.

Brazil has the potential to become a global leader by focusing on inclusive human rights solutions and establishing an ethical environment for AI innovation.

Risks associated with Artificial Intelligence for Lawyers: What do they entail?

Long-term consequences of the Legal Framework of Artificial Intelligence.

The legal framework for artificial intelligence has significant transformative effects on Brazil.

It can encourage investments and safeguard AI users’ rights in the future by offering legal certainty to companies.

Algorithmic impact assessments in high-risk systems enhance transparency and dependability, while ensuring civil liability for potential conflicts provides substantial protection to users.

Its success will rely on finding a balance between strict regulations and encouraging innovation, as overly rigid rules can stifle startups and deter investments, while overly lenient regulations can create risky legal loopholes.

Risk assessment and governance measures require substantial resources for practical application, potentially impeding the growth of small businesses by incurring high expenses.

There is a debate about which authority should enforce the law, with some suggesting the creation of a new agency while others propose giving these functions to the National Data Protection Authority.

The future of artificial intelligence in Brazil

The PL 2338/2023 is a crucial development in regulating the application of artificial intelligence in Brazil.

By controlling technology, the nation supports secure progress and safeguards its citizens’ rights.

Lawyers now have numerous opportunities and challenges to navigate in the realm of digital law.

The future of artificial intelligence in Brazil will be shaped by finding a harmony between technological advancement and societal accountability.

References:

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Please read the complete document of PL 2338/2023.

Frequently Asked Questions

Why is it crucial to control artificial intelligence?

Regulating Artificial Intelligence is crucial for safeguarding basic rights like privacy, equality, and non-discrimination. It also enhances transparency, prevents misuse, and fosters a secure environment for the ethical advancement of technology, stimulating sustainable innovation and attracting investments.

How is the regulation of AI in Brazil?
Challenges associated with regulating artificial intelligence.
How might the absence of rules affect the confidentiality and protection of personal information?