Europe Emerges as the 3rd Force in AI: Will Brazil Be Swallowed or Will It Take Its Place?

The global game of artificial intelligence is changing rapidly. The European Union, known for its regulatory rigor, has just made a surprising shift in its AI strategy, announcing a massive investment of 200 billion euros during the AI Action Summit held in France. This move places Europe as the third major power in the AI race, alongside the US and China, and has profound implications for countries like Brazil.

The European strategic shift and the Brazilian dilemma

It is particularly interesting to observe this transformation in the European approach. For years, Europe has positioned itself as the major regulator of global technology, establishing standards that were often adopted by the rest of the world – including Brazil. Now, without completely abandoning its regulatory vocation, the bloc understood that simply regulating would not be enough to be relevant in the global technological scenario.

Second UOL report, this change is seen as a response to concerns about falling behind the United States and China in terms of technological innovation. Meanwhile, Brazil's situation is described as worrying: without its own big tech and extremely dependent on European regulation, the country finds itself at risk of being “swallowed up” in the new global technological order.

This analysis resonates strongly with what I have observed in my work with startups over the past few years. The Brazilian ecosystem is still struggling to find its position in the global AI economy, oscillating between being just a consumer of imported technologies or developing their own capabilities.

The race for technological sovereignty

A movement that illustrates well the importance of technological sovereignty comes from Meta, which is developing its own AI chips to reduce dependence on Nvidia. According to Tecnoblog, Mark Zuckerberg's company intends to use these chips to optimize energy consumption and reduce costs in Facebook and Instagram recommendation systems.

And Meta is not alone on this journey. report from Hardware.com.br confirms that the company has already started testing the first samples of these chips, produced in partnership with TSMC.

This trend towards verticalization in the development of specific hardware for AI is a strategic move that should serve as a lesson for Brazil. Countries and companies that control their technological infrastructure gain not only efficiency, but strategic independence.

Brazil at a crossroads: regulate or innovate?

One of the main dilemmas Brazil faces is the balance between regulation and innovation. The discussion on AI regulation in healthcare, for example, perfectly illustrates this challenge. According to article published in Jota, PL 2338/2023, inspired by European regulation, raised concerns about the classification of AI in healthcare as high risk and the need to establish a new regulatory authority.

In my experience working with startups and public policies for innovation, I have noticed that overly restrictive regulations before the market matures often stifle the emergence of innovative solutions. Brazil needs to find its own regulatory path, which protects fundamental values without impeding innovation and the development of national technologies.

The democratization of AI and new opportunities

Not everything is a challenge on the horizon. The good news is that we are seeing a movement towards the democratization of AI tools, which can benefit Brazilian companies of all sizes.

An example is the WhatsApp has started rolling out a feature that allows users to create custom AI bots. This new feature, initially available in beta for iOS, allows any person or company to create virtual assistants without the need for advanced programming knowledge.

Likewise, the Sandy Carter talk at SXSW highlighted that generative AI can already be used without the need to write software codes, through hundreds of AI agents. Carter also pointed out that AI will transform jobs, but not necessarily generate mass unemployment – a perspective that I share based on my experience developing training programs for the technology market.

Intellectual Property Challenges in the Age of AI

Another topic that deserves attention is the impact of AI on the creative industries. Sony Music has already removed over 75,000 AI-generated songs from streaming platforms, arguing that such content commercially harms real artists.

Similarly, Game voice acting stars have united against the use of AI through the Pixel Pack initiative, seeking to preserve human involvement in the gaming industry.

These cases illustrate the delicate balance we need to find between technological innovation and protecting human creation. It is a debate that Brazil needs to face with maturity, considering both the transformative potential of AI and the need to protect our creators and artists..

The Future of AI-Powered Robotics

Looking at longer term trends, the Google has introduced a version of Gemini specifically for physical robots. This platform aims to improve the interaction between robots and humans, allowing robots to perform a variety of tasks in everyday life.

This development points to a future where AI will not only be in our smartphones and computers, but embedded in physical devices that will act in the real world. The implications of this trend are enormous and open up opportunities for Brazilian startups and companies that manage to position themselves in this new technological frontier.

Ways for Brazil not to be 'swallowed up'

Given this challenging scenario, what can we do to ensure that Brazil is not just a passive spectator of the AI revolution? Based on my experience supporting thousands of startups and working with public innovation policies, I see some possible paths:

• Strategic investment in technological education: We need to train more professionals capable of AI, not just to consume, but to create technology. This has been one of the focuses of my work in recent years, including in the training of technology professionals.
• Balanced public policies: Brazil needs regulations that protect fundamental values without impeding innovation. My experience leading programs like Start-Up Brasil has shown that it is possible to have public policies that encourage innovation in a responsible way.
• Building robust ecosystems: AI development does not happen in a vacuum. We need to strengthen the connection between universities, companies, investors and government. This is work I have been doing throughout my career, helping to build bridges between these different actors.
• Focus on Brazilian problems: We must encourage the development of AI solutions for specific challenges in Brazil, creating technologies that make sense for our reality.

A call to action

The current situation demands a more proactive stance from Brazil in relation to AI. We cannot afford to wait for other countries to define the path. We need to build our own strategy, which combines smart regulation with incentives for innovation..

In my mentoring sessions for startups and companies, I have reinforced the importance of looking at AI not only as an operational tool, but as a strategic element. Brazilian companies, regardless of their size, need to understand how AI can transform their businesses and prepare for this new reality.

Likewise, our policymakers need to take a broader view of what is at stake. This is not just about regulating a technology, but about positioning the country in a new global economic order.

Europe understood this and changed its approach. Brazil can do the same, finding its own path that reflects our needs and potential.

In my consulting and mentoring work, I have helped companies and organizations navigate this complex landscape, developing strategies that leverage AI’s opportunities while mitigating its risks. If you are looking to better understand how to position your company or organization in this new era, get in touch to discuss possibilities for collaboration..

The future of AI in Brazil depends on the choices we make today. Let’s work together to ensure that we are not just spectators, but protagonists of this technological revolution.