The Brazilian Senate approved the bill establishing a regulatory framework for artificial intelligence (AI) in Brazil. The proposal now heads to the Chamber of Deputies for review. Based on Bill 2,338/2023, the text regulates the development and use of AI systems, covering topics such as copyright, privacy, and civil liability.

One of the key provisions is the classification of AI systems by risk level, with stricter rules for high-risk systems, such as medical diagnostics, border control, and emergency management. Systems with "excessive risk," such as autonomous weapons and technologies that exploit vulnerabilities, are prohibited. On the other hand, the bill excluded social media algorithms from the list of high-risk systems, a decision that sparked controversy.

Copyright protections were strengthened, ensuring that works used in AI processes for commercial purposes provide compensation to rights holders. Additionally, the use of images, voices, and personal data will be subject to prior consent, in accordance with guarantees provided by the Civil Code.

The bill creates the National AI Regulation and Governance System (SIA), coordinated by the National Data Protection Authority (ANPD), which will be responsible for oversight and sector regulation. The ANPD will also play a central role in applying sanctions, which may reach up to R$ 50 million or 2% of the economic group's gross revenue.

Citizens affected by automated decisions will have guaranteed rights, including the right to explanation, contestation, and human review of decisions that impact their lives. The text also includes measures to mitigate discrimination in biometric systems and promotes digital literacy and AI innovation in the country.

The approved text was considered balanced, seeking to protect fundamental rights while encouraging technological innovation. If approved by the Chamber, most rules will take effect within two years.

Source: Brazilian Senate

This post was summarized from its original version using ChatGPT version 4o, with human review.