The Future of AI Regulation in South Africa, India, and Brazil

Artificial intelligence (AI) is rapidly reshaping global economies. South Africa, Brazil, and India are each leveraging AI to boost innovation in important areas, but they face different challenges. As a result, each country has developed its own rules on using AI, as well as on privacy, cybersecurity, and other efforts for digital transformation.

Compliance with existing laws and alignment with emerging frameworks will be crucial in navigating the regulatory landscape and mitigating risks associated with global AI deployment. Businesses in these countries must stay informed about changing AI regulations. Following current guidance, frameworks, and laws, as well as adapting to new rules, will help companies avoid problems and use AI effectively.

South Africa

Clients operating in South Africa should be aware that while there are no specific AI regulations yet, the country has launched the Draft National Artificial Intelligence Plan. The plan was introduced by the Department of Communications and Digital Technologies (DCDT) during the National AI Summit, and it outlines the government’s vision for integrating AI into various sectors to boost innovation. The draft plan will also guide the development of legal and regulatory frameworks for AI and aims to provide a clear roadmap for developing and implementing AI solutions, encouraging individuals and organizations to adopt the technology.

At the same time, existing laws, such as the Protection of Personal Information Act (POPIA), the Copyright  Act, the Patents Act, and the Competition Act impact AI development and deployment, and should be reviewed before developing or using AI technology in South Africa.

India

India is in the process of formulating and implementing policy frameworks to govern various aspects of AI regulation. While comprehensive AI-specific regulations are still evolving, several initiatives and guidelines are in place to guide the responsible development and deployment of AI technologies.

In 2018, India introduced its National Strategy for  AI, known as #AIFORALL. In February 2021, India introduced Part 1 of Principles for Responsible AI as a follow-up to the national strategy. It serves as India’s roadmap for the creation of an ethical, responsible AI ecosystem across sectors. In August 2021, India released Part 2, which concentrates on operationalizing the principles derived from the ethical considerations in Part 1.

India has also created special rules for areas like finance and health. Businesses in India should be cautious to follow these guidelines and any rules for their specific industry. In addition, the proposed Digital India Act (DIA) of 2023, if enacted, would replace the Information and Technology Act of 2000.

Brazil

Brazil is considering Bill No. 2,338/2023, a comprehensive effort to regulate AI, but the measure has not been approved. Most notably, this proposed law would classify AI systems by how risky they are and set rules for those who create and use them. The proposed AI regulation defines high or excessive risk systems as those that can harm health or safety, can exploit specific vulnerabilities, like age or disability status, or can be used by public authorities to unfairly evaluate, classify, or rank people, affecting their access to goods, services, and public policies. Businesses should assess the risks of their AI systems and set up proper management to follow the upcoming rules.

In July 2024, Brazil’s government unveiled a $4.07 billion proposal to invest in AI to achievement technological autonomy and competitiveness. The proposal is set to advance public and private investments for AI as part of the country’s 2024 to 2028 AI plan.

Conclusion

Overall, these developments indicate a robust regulatory environment for AI in South Africa, India, and Brazil, emphasizing global considerations which will impact various sectors and stakeholders. As such, it is critical that clients prepare for the potential enactment of AI regulations, which will impose new compliance obligations, especially for high-risk AI systems.

Staying updated on global AI developments is crucial to anticipate and adapt to new requirements. As new rules and regulations move forward, Crowell & Moring, LLP will continue to follow AI, advising clients on all global compliance needs.