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Brazil approves a new legal framework for Artificial Intelligence

By: Patricia Falcao, Mauro Ferreira

December 16, 2024

On December 10, 2024, the Brazilian Federal Senate approved the Artificial Intelligence Legal Framework (Bill No. 2338/23). With the Senate’s approval, the text will now proceed to deliberation in the Chamber of Deputies and, if approved, will be sent for presidential sanction.

The proposed legislation was prepared by the Internal Temporary Commission on Artificial Intelligence (CTIA), which consolidated a text focused on balancing the protection of the rights of those affected by AI systems and the regulatory obligations applicable to artificial intelligence agents. These agents include developers, distributors, and implementers, each with specific responsibilities.

For clarification, AI implementers are entities or individuals who apply artificial intelligence systems in their operations, integrating them into their processes or services. AI developers are responsible for the creation, design, and maintenance of AI systems. Finally, distributors are those who market or mediate the sale and supply of developed AI systems.

The legal framework adopts a risk-based approach, classifying AI systems into categories such as excessive risk, whose use is prohibited in certain cases, and high risk, which requires algorithmic impact assessments (Articles 13-28). Key obligations and responsibilities for implementers, distributors, and developers of AI include the following:

  • for implementers: Maintaining documentation on accuracy and safety; mitigating discriminatory biases; ensuring proper human oversight; transparency in system operations and outcomes; and conducting impact assessments at all stages of the AI lifecycle.
  • for developers: Recording governance measures; conducting tests to ensure safety levels; mitigating discriminatory biases; providing information to implementers; and promoting social responsibility and sustainability.
  • for distributors: Ensuring the regulatory compliance of marketed systems; providing clear information about functionality and associated risks; facilitating communication between developers and implementers when necessary; and ensuring that distributed systems are duly registered and certified, where applicable.

General-purpose and generative AI systems have additional obligations aimed at preventing specific risks.

The proposal establishes the National System for Regulation and Governance of Artificial Intelligence (SIA), coordinated by the National Data Protection Authority (ANPD), supported by the Permanent Council for Regulatory Cooperation in Artificial Intelligence (CRIA) and the Committee of Experts and Scientists on Artificial Intelligence (CECIA). Sanctions similar to those under the General Data Protection Law (LGPD) are also foreseen, including fines of up to BRL 50,000,000 (fifty million reais) per infraction.

Thus, the text aims to regulate controversial issues such as informational integrity and copyright. Regarding copyright, it provides that rights holders may prohibit the use of their content or demand remuneration when used for AI development.

Therefore, the Legal Framework represents a significant regulatory advancement, placing Brazil at the forefront of artificial intelligence regulation. However, it also poses challenges for companies and developers to adjust their practices to meet the new requirements.

To support agents on matter related to the Legal Framewok, ClarkeModet Brasil has specialized professionals who can offer tailored solutions, prevent risks, and ensure regulatory compliance. We are ready to assist our clients in adapting to this new legal landscape.

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