EU-BRAZIL Investment Dialogue

AI Act fines increase pressure for Artificial Intelligence regulation on the Brazilian side

Since August 2, 2026, the transparency obligations under Article 50 of Regulation (EU) 2024/1689, known as the AI Act, came into force, requiring artificial intelligence system providers to clearly identify automated interactions, label synthetic content, and ensure machine-readable marking of deepfakes. The European rule directly affects Brazilian companies providing services to clients operating in the European Union, even without headquarters, branches, or servers on European territory, since the law’s applicability criterion is tied to the system’s use in the European market, not the provider’s geographic location.

The same period marked the start of enforcement by the European Commission’s AI Office on general-purpose model providers, with penalties reaching up to 35 million euros or 7% of the infringing company’s total annual global turnover, depending on the severity of the violation. For systems already available on the market prior to the rules entering into force, an additional deadline until December of this year was granted to adapt synthetic content marking. Meanwhile, Brazil remains without general legislation on the subject, as Senate Bill 2,338/23, approved by the Senate at the end of 2024, remains in the Chamber of Deputies with no scheduled vote.

This regulatory mismatch has direct relevance for trade and investment between Brazil and the European Union, as Brazilian software export companies, members of supply chains with European links, or digital service providers to clients in the bloc already need to adapt to requirements set by Brussels, even without the National Congress having concluded its own regulation. The phenomenon reinforces what experts call the “Brussels Effect”, the European Union’s capacity to project its regulatory standards beyond its borders due to the economic weight of its market, and highlights the urgency for Brazil to advance its own legal framework to preserve regulatory autonomy in commercial relations with the European bloc.

Read more at: https://www.migalhas.com.br/depeso/463366/europa-multa-brasil-debate-o-ai-act-ja-alcanca-empresas-brasileiras