New Steps in the Regulatory Framework for AI: Federal Senate receives draft bill from the Jurists' Commission

The final report prepared by the Committee and delivered to Senate President Rodrigo Pacheco has over 900 pages, and consolidates contributions from specialists and civil society. The report also analyzes OECD member countries’ regulatory systems.

In its explanatory memorandum, the report recognizes that the new legal framework must possess two objectives which are not mutually exclusive: to establish rights for the protection of individuals, at the same time creating legal certainty for innovation and economic and technological development.

In its explanatory statement, the report recognizes that the new legal framework should have two objectives, which are not mutually exclusive: to establish rights for the protection of individuals, while creating an environment of legal security for innovation and economic-technological development.

To this end, the report reconciles a risk-based approach with a regulatory model based on rights: the greater the risks inherent to using AI – especially discrimination –, the greater the rights guaranteed to citizens. In this sense, using technologies that the Committee considers riskier — such as biometric identification systems that are continuous, at a distance, in public places – now require a special federal law.

A recent case involving an electronic monitoring system on subway lines in the city of São Paulo illustrates the need for greater legal certainty concerning the topic: at first, the São Paulo Court of Justice of issued a decision based on the lack of compliance with the requirements of Brazil’s General Data Protection Law (LGPD), determining suspension of the system due to the risks that this technology could offer public transport users. A later decision, however, considered that the situation falls within the exceptions to LGPD application, and authorized installation of the system.

To achieve its objectives, the proposed regulatory framework provides for various instruments to combat discrimination – such as the right to information and understanding; the right to object; and the right to amend discriminatory, illegal or abusive biases; as well as preventive governance measures. An impact assessment tool and a public database that gathers such assessments so as to ensure information and transparency are also highlighted.

It is in the symbiosis between privacy and technological innovation that the greatest risks to individuals exist, so that, as the Committee of Jurists itself recognizes, the issue – although complex – requires predictability. Thus, monitoring the development of legislative discussions on the topic is crucial to new digital businesses.

If you would like more information on the subject, please contact our specialized Data Privacy and Protection team!