In recent years, we have followed many debates regarding awareness of the challenges and ethical implications of Artificial Intelligence (AI) around the world, and Brazil is no exception. Although there is still no specific regulation on AI in place in the country, many discussions take place about the need to regulate AI to ensure its ethical and responsible use.
The Federation of Trade in Goods, Services and Tourism of the State of São Paulo - FecomercioSP, through the Digital Economy and Innovation Council, held last Friday, 30/06/2023, the seminar “The Regulatory Framework for Artificial Intelligence in the Brazil in the post-ChatGPT era”, with the aim of debating the development of AI in the country and assessing the Brazilian regulatory environment. The panels highlighted opinions on how complex AI regulation is and, most of the time, full of questions that still do not have answers. There is also a lot of talk about how big tech will or will not adopt these regulations.
In addition to the launch of Artificial Intelligence and Cybersecurity Committee, in the same event, conducted by Andriei Gutierrez, president of the Council of Digital Economy and Innovation of FecomercioSP, the entity released a decalogue with essential principles for the regulation of AI in order to assess the Brazilian regulatory environment. Faced with the current scenario in the country, the proposed principles try to reconcile AI with issues of ethics, governance and responsibility, in addition to suggesting pillars for long-term economic and social growth in Brazil. Are they:
1.
Regulate usage, not technology;
2.
Evaluate the application of the legislation in force and the competence of the constituted bodies;
3.
Comply with existing civil liability rules;
4.
Comply with the current regime of administrative sanctions;
5.
Principled and contextual risk-based approach;
6.
soft law combined with regulatory flexibility;
7.
Promote regulated self-regulation;
8.
Employ decentralized regulation with regulatory interoperability and central coordination;
9.
Encourage responsible innovation;
10.
Participate in the global standardization debate.
Gutierrez pointed out that "We are not talking about a mere fourth stage of the industrial revolution. This is a digital revolution. We are on our way to becoming a fully digital society and we need to discuss strategies to invest in this".
It is already expected that AI will bring significant improvements in terms of efficiency and productivity in various industries, performing tasks faster, more accurately and without errors, thus boosting the economy and leading to productivity gains in different sectors. In contrast, a common speculation is that AI and automation will have a significant impact on the job market, replacing many traditional jobs with automated systems, including debates about which sectors and professions will be most affected and how society should adapt to these changes. .
Another much-discussed example is that AI has the potential to improve security in a number of areas, including detecting financial fraud, identifying suspicious activity, and preventing cyberattacks. It is hoped that AI can help identify abnormal patterns and behaviors, providing a safer environment in different sectors. But some issues raised by the Brazilian market in relation to AI regulation include, for example, the concern about the ethical use of AI systems and the need for transparency regarding the decisions made by these systems. Many believe that companies that develop and use AI should be transparent about how the algorithms work and how decisions that affect individuals are made.
Another issue discussed is who is responsible for damage caused by AI systems. It is expected that a clear definition of legal responsibilities will be created when failures occur in automated systems. Additionally, with the increasing amount of data collected and processed by AI, there are concerns about the privacy and protection of that data. Regulation could address these concerns and establish safeguards to ensure that data is handled properly and protected from misuse.
In the context of social and economic impact, it is argued that AI has the potential to transform many sectors of the economy and society as a whole. In this case, regulation can help ensure that this transformation takes place in a fair, equitable manner and with benefits for all involved, minimizing possible negative impacts, such as mass unemployment or excessive concentration of power.
With regard to promoting the development and adoption of AI in Brazil, opinions are also divided. There are those who argue that overly restrictive regulation could slow down the country's innovation and competitiveness in this area, while others argue that regulation is necessary to ensure a safe and ethical environment for the use of AI.
It is important to emphasize that these are just some of the issues that have been discussed in the Brazilian market in relation to AI regulation. Opinions vary across different sectors and stakeholders. Aderbal Hoppe, auditor and partner at TATICCA Allinial Global, has a positive view of regulation. According to him, “the regulation of AI is important to bring a north in this initial moment, a path that is as visible as possible”.
These speculations may vary and evolve over time as AI technology and applications develop. Aderbal also states that “without regulation, the scenario will still generate a lot of speculation and, consequently, will create generalized insecurity with the world of AI. And in a context of insecurity, people are confused by the uncertainties in decision-making”.
In many debates, the importance of finding a balance between regulation and how to properly promote innovation and technological progress is perceived. Overly restrictive regulation can stifle innovation and competitiveness, making it essential that regulations are developed with the help of experts, stakeholders and society at large, taking into account a wide range of perspectives and considerations.
EGet in touch with TATICCA – ALLINIAL GLOBAL, which provides integrated services for auditing, accounting, taxes, corporate finance, financial advisor, risk advisory, technology, business consulting and training. For more information, access www.taticca.com.br or e-mail taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.