Artificial Intelligence regulation project should harm SMEs and startups, according to ABIACOM

The Brazilian Association of Artificial Intelligence and E-commerce (ABIACOM) sent the National Congress an open letter expressing deep concern about the impact of Bill 2338/2023, a text that should go to the vote soon and establishes rules for the use of artificial intelligence systems in the country.

Representing the productive sector, which drives the digital economy and Brazilian retail, the entity recognizes the importance of a modern regulatory framework that ensures fundamental rights.However, it points out that the current wording of the PL creates severe barriers to the operation of companies, especially Small and Medium Enterprises (SMEs), which may discourage innovation and reduce the generation of formal jobs.

In the document sent to parliamentarians, ABIACOM warns that articles 35 and 36, by instituting objective and solidarity responsibility between developers and AI operators, place small entrepreneurs at high legal risk. “In practice, a small retailer that only uses a contracted AI tool can be fully held responsible for technological failures beyond its control. This legal risk makes it impossible for SMEs to use and brakes ACHR hiring, says Fernando Mansano, president of ABIACOM.

The letter also criticizes the transparency requirements provided in the text. For the entity, it is technically impossible to require companies using AI to offer detailed explanations about systems to which they do not have internal access. “The project ignores the reality of the global innovation chain. Most companies use AI via API, without technical mastery over their architecture. Demanding absolute transparency from those who only rents the technology creates insecurity and discourages the use of AI in the country‘, Mansano points out.

Another point of concern is the compliance costs provided for by the proposal, considered prohibitive for startups and SMEs. Independent audits, risk assessments and reliability tests would be unfeasible for most Brazilian companies. “Without differentiated treatment for startups and SMEs, Brazil will eventually create an involuntary market reserve for large international corporations.

Given this scenario, ABIACOM asks Congress to review the passages considered critical before the vote. “We defend a regulation that punishes misuse, not the tool or the entrepreneur. Brazil needs an environment that stimulates technology as a driver of productivity and employment, and not a bureaucratic system that penalizes those who want to innovate”, he concludes.

The association reinforces that it is available to contribute technically to the improvement of the project and to collaborate in the construction of a balanced regulation, capable of protecting the citizen without compromising the development of the digital economy in the country.