The advancement of Artificial Intelligence in Brazil is being shaped by two bills that operate on distinct but complementary fronts: Bill 2338/2023, focused on governance and the protection of rights, and Bill 5960/2025, aimed at fostering the digital economy. How these bills are harmonized will determine whether the country can balance ethics, competitiveness, and technological innovation.
While Bill 2338/2023 establishes safeguards and security criteria for the development and use of AI, Bill 5960/2025 seeks to create conditions for Brazil to produce technology, strengthen its infrastructure, and reduce external dependencies. It's not about choosing between regulation or incentive, but about understanding how both operate and what each delivers to the digital ecosystem.
PL 2338/2023: Governance, Rights and Security
Bill 2338/2023 is the regulatory framework focused on the centrality of the human person and the mitigation of risks. It adopts a model based on risk assessment and proportional accountability, requiring that systems with high social impact—such as those used in justice, health, or infrastructure—meet requirements of robustness, documentation, and continuous supervision.
Among the main benefits, the strengthening of public trust stands out. The requirement for the right to explanation, human review, and mechanisms to prevent discrimination leads to a more transparent and secure usage environment. Furthermore, the creation of the AI Regulatory Sandbox allows for testing innovative solutions under controlled conditions, encouraging responsible experimentation.
The project, however, also presents challenges. Obligations such as Algorithmic Impact Assessment can increase operational costs for startups and small businesses, which may not have sufficient infrastructure to meet all the requirements. Furthermore, the prohibition of practices considered excessively risky, such as real-time biometric recognition in public spaces, could be interpreted as restrictive if the application of exceptions is unclear.
PL 5960/2025: Development, Infrastructure and Technological Sovereignty
While Bill 2338/2023 regulates, Bill 5960/2025 drives the process. Its objective is to strengthen the digital economy and give Brazil a real capacity to compete globally. To this end, the bill creates financing instruments, strategic incentives, and guidelines for infrastructure development.
The highlight is the National Digital Economy Fund (FNED), designed to support startups, laboratories, foundational AI models, and cutting-edge research. The bill also encourages the creation of sustainable data centers and establishes anonymized databases of public interest, with differentiated access for universities and research centers—crucial elements for scientific advancement.
Another relevant point is the National AI Certification System (Sincai), which establishes quality seals for high-risk systems. This certification can reduce information asymmetries and allow Brazilian solutions to better position themselves in international markets.
The risks, however, are significant. The obligation to pay royalties when copyrighted content is used in AI training can increase the cost of developing large-scale models, hindering local innovation. Furthermore, charging for access to public databases could limit the entry of new players into the ecosystem.
Conclusion: Balance as a National Strategy
Building a healthy innovation environment depends on the coherent integration of governance and funding. Bill 2338/2023 is indispensable to ensure that AI operates ethically, safely, and transparently, preventing abuses and protecting fundamental rights. Bill 5960/2025, on the other hand, is essential for Brazil to move beyond being merely a consumer and become a producer of technology, with autonomy and global competitiveness.
The risk of stifling innovation lies not in regulation itself, but in the lack of harmony between requirements, costs, and incentives. Both projects, by providing for differentiated regimes for startups and small businesses, already demonstrate a concern to avoid premature regulatory suffocation.
The future of AI in Brazil will depend on the ability to balance responsibility and growth. To regulate without hindering, to encourage without weakening. As with any high-impact technology, governance and promotion are not opposing forces: they are the two pillars that support a solid, secure, and innovative digital ecosystem.
REFERENCES
BRAZIL. Chamber of Deputies. Bill No. 2.338 of 2023. Provides for the use of Artificial Intelligence in Brazil and establishes principles, guidelines and foundations for its development and application. Brasília, DF, 2023. Available at: https://www.camara.leg.br/proposicoesWeb/prop_mostrarintegra?codteor=2868197&filename=PL%202338/2023. Access at: December 2, 2025BRAZIL. Chamber of Deputies. Bill No. 5.960 of 2025. Establishes the Framework for Promoting the Digital Economy, establishes the National Digital Economy Fund (FNED), and provides for incentives for the development of emerging technologies. Brasília, DF, 2025. Available at: https://www.camara.leg.br/proposicoesWeb/prop_mostrarintegra?codteor=3051792&filename=PL%205960/2025. Access at: December 5, 2025.
