Brazil’s AI Ambition: Autonomy at Any Cost?

When I think of Brazil, two images come to mind: the dense canopy of the Amazon rainforest and the vibrant streets of São Paulo, where innovation and social tension meet every day. It is here that a country is taking shape that no longer wants to rely on imported technology but is finding its own path in artificial intelligence.

Brazil faces the challenge of balancing technological progress with democratic values. In São Paulo, facial recognition systems promise more safety but spark criticism. In the Amazon, AI is helping to protect the forest. A nation caught between control and progress, now shaping its own AI strategy. How far has Brazil really come, and what can other countries learn from it?

In São Paulo, a network of 25,000 cameras uses facial recognition to identify wanted criminals every day without a single shot being fired. In the Amazon, AI systems analyze satellite images to predict illegal deforestation before the chainsaws start. As impressive as these examples sound, they raise important questions. How advanced is Brazil really in the field of artificial intelligence, and what can other countries learn from this emerging AI nation? The story is one of opportunities and risks, from ambitious national strategies and booming startups to data protection and digital inequality.

Snapshot

• Population: around 213.4 million (2025)

• GDP: approx. 2.2 trillion USD (largest economy in Latin America)

• R&D spending: about 1.19% of GDP (relatively low)

• Internet penetration: about 88% of citizens use the internet (2023)

• Key institutions: Ministry of Science, Technology and Innovation (MCTI); National Data Protection Authority (ANPD)

• National AI strategy: Estrategia Brasileira de Inteligência Artificial (EBIA, 2021), updated in 2024 as IA para o Bem de Todos (“AI for the Good of All”)

• Notable AI startup: Unico (São Paulo), a digital ID unicorn valued at over USD 1 billion with around 800 corporate clients

Brazil, the largest democracy in the southern hemisphere, was late to the AI race but is now catching up quickly. The country introduced its first AI strategy (EBIA) in 2021, though without a defined budget or roadmap. For years, investment in research remained low at just over 1% of GDP, while education gaps and social inequality slowed technological progress.

Still, Brazil has notable strengths. It has a vibrant tech community, ranks above the OECD average in open data initiatives, and established early internet rights with the Marco Civil in 2014. The current government under President Luiz Inácio “Lula” da Silva aims to build on this foundation. After years of political turbulence, AI is now meant to drive development and inclusion. Made in Brazil instead of imported. Much depends on the outcome of this catch-up phase, not only for Brazil itself but also as a potential roadmap for other emerging economies.

From Follower to Rulemaker as Brazil’s AI Governance Takes Shape

Who sets the rules? Leading the way is the Ministry of Science, Technology and Innovation (MCTI), supported by a newly active data protection authority (ANPD) and a network of scientific advisory councils. In July 2024, the government introduced a comprehensive national AI strategy. Under the motto “AI for the Good of All,” Brazil plans to invest around 23 billion reais (about 4 billion USD) in sustainable, public-interest AI projects by 2028.

The plan, developed by experts from government, business, and civil society, focuses on digital sovereignty. “Instead of waiting for AI from China or the United States, why not build our own?” President Lula explained when announcing the initiative. The program includes 54 immediate measures covering areas from education and healthcare to environmental protection.

Brazil aims to promote innovation while strengthening regulation. Following the EU’s lead, the country is working on its own AI law that classifies systems by risk level. The bill (PL 2338/2023) was approved by the Senate in December 2024 and is now before the lower house. It includes transparency requirements, an AI ombudsman, and heavy fines for misuse of up to 50 million reais.

But the details are still being debated. Industry groups warn of overregulation, while civil rights advocates demand minimum safeguards. One of the most controversial ideas is the principle of “information integrity,” which requires AI systems to distribute only reliable content. Tech companies see this as potential censorship, while government officials argue it builds trustworthy AI. “The concept is new and disputed,” says Rafael Zanatta from the NGO Data Privacy Brasil, “but Brazil wants to set a benchmark here.”

It remains to be seen when the law will pass and how strict it will be, but agencies like the ANPD are already positioning themselves as guardians of ethics and privacy in the age of AI. Brazil shows that even in the Global South, governance around artificial intelligence can be actively shaped when government and civil society work together. Lula’s goal is ambitious: to make Brazil a leading voice of the Global South in shaping global AI regulation. The coming months will show whether the country can live up to that promise.

São Paulo Leads as Brazil’s Startups Drive the AI Boom

Despite (or perhaps because of) some delays in official strategy papers, Brazil’s AI ecosystem is already booming. São Paulo has become the epicenter of Latin America’s tech surge. Eighty-three percent of Brazil’s unicorns are based here. Of the roughly 500 AI startups across Latin America, the vast majority are located in Brazil and have attracted around 2 billion reais in investment. After a slowdown between 2020 and 2022, venture capital has been flowing back into the country since 2024. Confidence is returning. A prime example is Unico, a São Paulo-based startup specializing in biometric identity verification, which raised more than 338 million USD in 2023–24 and joined the ranks of unicorns. With its AI-driven solutions for fraud prevention and facial recognition used by over 800 corporate clients, Unico shows that Brazilian firms can compete globally.

The state is also fueling the market. In 2024, the government launched an ambitious semiconductor program called Brasil Semicon to promote local chip production. Brazil currently covers only about 8 percent of its domestic chip demand. In parallel, the country is accelerating its 5G rollout and exploring new technologies such as Open RAN to improve connectivity in remote regions.

Global tech giants have already taken notice. IBM operates the Center for Artificial Intelligence (C4AI) together with the University of São Paulo, developing advanced AI applications from medical imaging to Portuguese language processing since 2020. Nvidia sees Brazil as a future AI hub, supporting startups and supercomputing projects. The Santos Dumont supercomputer was upgraded with Nvidia technology in 2023 to speed up AI model training. Cloud providers including AWS, Google, and OpenAI have also established regional data centers, giving local businesses faster access to AI services.

Brazil has specific advantages in sectors such as agriculture and energy. As an agricultural powerhouse, it is investing heavily in AgriTech from AI-based yield prediction to optimized livestock feed. In the energy sector, AI is being used to make hydropower plants and power grids more efficient. At the same time, the country is steadily building its own AI talent base. Universities such as USP and UNICAMP now offer AI degree programs, and initiatives like Ciência Sem Fronteiras (“Science Without Borders”) have produced a generation of tech-savvy professionals, many of whom are now founding startups.

The market is in motion. Brazil no longer wants to rely on raw materials and agricultural exports alone. It aims to climb to the top tier through AI-driven value creation. The path forward depends on stronger infrastructure, sustained investment, and the smart use of local assets from a vast Portuguese-language data base to the urgent need for AI solutions in megacities and rainforest protection.

AI with Both Feet on the Ground: Real Solutions for Brazil

Brazil’s AI applications are as diverse as the country itself. Take the rainforest: in the Amazon, AI is being used to protect the “lungs of the Earth.” The Brazilian environmental organization Imazon has developed a platform called PrevisIA, which uses machine learning to process vast amounts of satellite data. Its unique feature is prediction. The system forecasts where illegal logging is most likely to happen next. This early detection is a game changer, allowing authorities to act before the chainsaws start. “In the past, we could only react once the forest was already gone,” says Imazon researcher Carlos Souza. “Now, by identifying risk zones in advance, we can actually prevent deforestation.” Early results are promising and could transform how forest monitoring works.

Thousands of kilometers south, in the courtrooms of São Paulo and Brasília, AI is helping to ease the burden of bureaucracy. With more than 70 million pending cases, Brazil has one of the most overloaded judicial systems in the world. To manage this caseload, courts are experimenting with AI assistance: robo-judges filter routine cases, chatbots handle public inquiries, and algorithms help prioritize urgent proceedings. More than 140 AI pilot projects are already underway across the country. An ironic side effect has emerged: with tools like ChatGPT, some lawyers now submit AI-generated filings, temporarily adding to the pile. Still, officials hope automation will eventually reduce the backlog and improve public access to justice.

AI is also entering everyday life. In São Paulo, hospitals have begun testing virtual queues: patients register through an app, and an AI system dynamically plans appointment order, significantly reducing waiting times. At the same time, hospitals use AI to analyze radiology images and assist doctors with diagnoses such as detecting tuberculosis on X-rays. A real benefit in rural areas with doctor shortages. In education, adaptive learning software supports teachers and helps students individually. In the state of Ceará, AI tools are being used to identify at-risk students and prevent dropouts, with encouraging results.

And finally, there is fintech. Brazil’s digital banking revolution, led by companies like Nubank, relies on AI algorithms to assess creditworthiness and extend financial services to millions of previously “invisible” citizens. These examples show that AI in Brazil is not a distant vision but an everyday reality on farms, in forests, in offices, and on apps. Often, it is used to solve distinctly Brazilian problems, from tropical medicine to traffic management in the chaos of São Paulo’s 21 million-strong metropolis. This grounded approach might just inspire others.

When Technology Amplifies Inequality

Where there are opportunities, there are also risks, and Brazil is a prime example of the tension between security, privacy, and equality.

Data protection and surveillance:

Cities like São Paulo and Rio de Janeiro already operate large-scale AI-powered video surveillance systems. The “Smart Sampa” project in São Paulo, for instance, connects around 25,000 cameras with facial recognition software that automatically matches faces against police databases. Officials proudly report results: more than 1,000 wanted suspects identified within six months. But the other side alarms activists. “Big Brother” is no longer fiction when more than one-third of the population, over 70 million people, could be under biometric surveillance.

The error rates of these systems are not evenly distributed. Studies show that facial recognition technologies generate far more false positives for people of color. In one case, the false match rate for Black women reached 34 percent compared to less than 1 percent for white men. The consequences are real. In 2023, an innocent Afro-Brazilian man was arrested in Bahia and spent 26 days in jail after an AI system misidentified him as a suspect - a case that made national headlines.

Human rights organizations such as Amnesty International and local NGOs like Instituto Sou da Paz and Data Privacy Brasil have called for a moratorium on facial recognition in public spaces. The debate mirrors that in Europe: how much surveillance is acceptable in the name of public safety before it violates basic rights? Brazil’s 2018 Data Protection Law (LGPD) already provides protections similar to the EU’s GDPR, but there are no specific rules for AI-based policing technologies. The country remains in a gray area.

Bias and the digital divide:

Another challenge is fairness and bias in AI. Most training data used in Brazil’s systems come from abroad, often not even from Portuguese-language sources. Activists warn of “algorithmic colonialism”: when AI systems that approve loans or rank job applicants rely on biased foreign data, marginalized groups may face discrimination. The government insists it will not “import discriminatory AI” and has introduced ethics guidelines based on UNESCO recommendations, though implementation remains uncertain.

The digital divide also persists. While more than 89 percent of people in urban areas are online, the figure drops to around 76 percent in rural regions. Similar gaps exist across education and income levels. The risk is clear: AI could deepen existing inequalities if only the well-educated benefit from the new tech boom. Civil society groups are pushing back, calling for transparency and inclusion. In some cities, their pressure has already led to temporary halts on facial recognition programs until new laws are in place.

Labor and education:

By 2030, an estimated 15 to 20 percent of jobs in Brazil could be affected by automation, especially in customer service, manufacturing, and even public administration. Labor unions are urging retraining programs to ensure that “AI does not become the middle class’s job killer.” The first initiatives, such as AI Upgrade, a government-funded upskilling program, are underway.

Still, unease remains. Brazil has experienced previous technology waves that created a few winners and many losers. This time, the goal is different. The central question is whether Brazil can use AI to advance both security and progress without sacrificing privacy and rights. The next steps from finalizing the AI law to applying these systems in schools, courts, and favela communities will provide the answer.

What to Watch

• AI law nearing approval: In 2025, Brazil’s lower house will vote on the country’s first AI law. Observers are asking whether parliament will weaken the ambitious proposal or set new global standards.

• Investment and implementation: The 4-billion-real “AI for All” plan is entering its decisive phase. Early projects from university AI labs to pilot programs in schools, public administration, and startups are getting underway. The key question is whether Brazil can put its 23 billion reais of planned funding to effective use.

• AI for climate and the world stage: At the end of 2025, Brazil will host the UN Climate Conference (COP30) in Belém, deep in the Amazon. The country wants to showcase how AI can support environmental protection, for example by monitoring illegal deforestation. At the same time, Brazil is positioning itself as a leading voice of the Global South in AI governance within international organizations such as the United Nations. The world is watching to see whether those ambitions turn into action.

Insights from Brazil’s AI Story

Brazil’s path in artificial intelligence offers two main lessons.

First, ambitious national strategies are possible and necessary for emerging economies to stay competitive. Brazil shows that with political will and expert input, a government can build a clear vision where AI becomes a driver of inclusive growth and digital sovereignty. Other countries can learn from this and define their own strengths instead of importing ready-made solutions.

Second, regulation and innovation need to move together. Brazilians are finding that surveillance systems and automated decisions lose trust when there are no safeguards. The country is therefore working to promote AI while keeping it accountable, a balance that matters everywhere.

Brazil also proves that AI is not reserved for industrialized nations. A diverse democracy with social challenges can still create relevant and creative solutions, from favelas to research labs. The essential lesson for others is simple: AI policy should stay human-centered, with the courage to act and the honesty to face its risks. Brazil is walking that fine line, and the world is watching.

When I look back at the previous chapters of our AI Around the World series, Brazil feels like the missing piece. In South Korea, precision and structure dominate, a country that has turned AI into industrial policy. In Saudi Arabia, money takes center stage, with AI as a symbol of power, progress, and control. Canada is still figuring out how to turn academic excellence into economic impact. New Zealand shows that values and trust can become real competitive advantages. And Kenya proves that innovation can flourish even where infrastructure is still developing, as long as it grows from local needs.

Brazil combines parts of all these stories yet tells a different one. It is not about perfection but about balance between progress and fairness, between global technology and local reality. The country shows that AI does not have to be a luxury product of industrial nations but a tool for development, justice, and identity.

What I take away from Brazil may be the most honest message of this series. AI is not a race for supercomputers but a collective task of embedding technology in our societies. Every country we have visited offers a different answer to the same question: what is AI really for?

And perhaps that is the lesson from Brazil, and from all the places before it. AI is understood differently everywhere, yet it always reflects our values. The more we learn from one another, the clearer it becomes that the future of AI will not be decided in one country but in many.

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 AI Around the World is a series by PANTA. In each edition, we take a closer look at one country: how artificial intelligence is understood, promoted, regulated, and applied there. We tell stories about technology and society, about political strategies and practical use cases. Not from a bird’s-eye view, but up close. Because anyone who takes artificial intelligence seriously has to think globally and understand it locally.