R$ 23 Billion in Sovereign AI While Young People Lose Jobs - Why This Paradox Defines the Most Important Brazilian Strategy of the Decade

Two news items from the last 24 hours perfectly capture the historic moment we are living in: the Brazilian government announces an investment of R$ 23 billion in “inclusive and sovereign” artificial intelligence, while studies show that young professionals are losing their jobs to automation. This is no coincidence. It's a reflection of a transformation that requires strategy, not just reaction.

As someone who has spent the last 25 years in the Brazilian innovation ecosystem, I see this moment not as a contradiction, but as a unique opportunity for Brazil to position itself as a global player in responsible AI.

Brazil bets big on digital sovereignty

Minister Esther Dweck revealed an ambitious plan at the Telebrasil 2025 Panel: R$ 23 billion by 2028 to develop an “inclusive, sovereign, ethical and people-centered” AI policy. According to report by Agência Brasil, The investment will include infrastructure, server training, governance and the acquisition of supercomputers.

But let's go beyond the numbers. What really matters is the strategy behind them.

The plan foresees partnerships between Serpro and Dataprev to create a “secure national cloud” for strategic data, avoiding dependence on foreign public clouds. It's a smart geopolitical move in a world where data is the new oil.

When I see initiatives like this, I'm reminded of the first startup support programs I helped structure in the federal government. The difference now is the scale and urgency. We are no longer talking about technological niches, but about the digital infrastructure that will define our competitiveness in the coming decades.

The Generational Paradox in the Labor Market

While the government invests heavily in AI, a study by Stanford University provides worrying data: 6% drop in the employment rate among 22 to 25 year olds in the last three years, with 20% in occupations susceptible to automation by AI. According to Veja report, in areas such as software engineering, marketing and sales are the most affected.

Paradoxically, the demand for experienced professionals aged 35 to 49 in these same sectors has increased by 9%. Why? Because AI still depends on human experience to validate results and make strategic decisions.

This scenario makes me think of the evolution of the concept of “AI fluency”. According to Folha article, The number of job postings with references to AI has almost tripled in a year, but often without a clear definition of what this means.

The truth is “AI fluency” is not a specific technical skill, but a new digital literacy which includes everything from the basic use of generative tools to the ability to design strategies that combine automation with human value.

What it means to be “fluent in AI” in 2025

Based on what I've seen in the market, fluency in AI involves:

• Prompt engineering capacity: Knowing how to ask the right questions and structure effective contexts
• Understanding limitations: Understanding when AI is useful and when it is not
• Workflow integration: Incorporate AI tools into existing processes
• Critical thinking: Validate outputs and identify biases
• Adaptability: Ability to learn new tools as they arise

The most interesting thing is that these skills are more human than technical. It's not about programming algorithms, but about think strategically about how to amplify human capabilities with technology.

Global Governance and Ethical Challenges

While Brazil is structuring its national strategy, other countries are moving ahead with regulation. China, for example, made it mandatory to identify AI-generated content, This is one of the first measures of its kind in the world.

Australia has announced that it will require big tech to prevent the use of tools to create AI-generated nude images, especially against children.

And we even have complex geopolitical cases, such as Venezuela accusing the US of using AI to forging videos of military attacks.

These examples show that AI governance is not just a technical issue, but a geopolitical one. Brazil is well placed to lead discussions on ethical and responsible AI, especially considering our history of multilateral diplomacy.

Why trust is still the main obstacle

A Capgemini survey of 1,500 executives reveals that only 2% of companies have implemented AI agents at scale. Confidence in autonomous agents has even declined in the last year, with 40% leaders seeing more risks than benefits.

It reminds me of the early days of startups in Brazil. There was skepticism, resistance and fear of the new. But those who knew how to navigate this transition with responsibility and strategic vision came out ahead.

The same dynamic is happening now with AI. Organizations that manage to balance responsible adoption with aggressive innovation will have a sustainable competitive advantage.

How to Build Trust in AI

In my experience helping companies adopt new technologies, a few factors are key:

• Transparency in processes: Document how AI makes decisions
• Clear governance: Establish responsibilities and limits
• Gradual implementation: Start with low-risk use cases
• Team training: Invest in continuing education
• Quality metrics: Constantly monitor performance and bias

The Transformation of Education and Work

Fred Trigueiro, in an article in Valor Econômico, makes an important point about education in times of AI: the arrival of AI is not a threat due to the ease of “copy and paste”, but an opportunity to transform education to favor critical thinking and creativity.

This vision is in line with what I've been saying about the future of work. The CACACA skills (Creativity, Autonomy, Collaboration, Adaptability, Connection and Affection) become even more relevant in a world with AI.

Bishop Borys Gudziak, reflecting on American Labor Day, pointed out that AI should enrich, not diminish, the dignity of work. It's a perspective that resonates deeply with Brazil's proposal for “people-centered” AI.

Strategic opportunities for Brazil

I see at least four fronts where Brazil can excel globally:

1. AI for Social Inclusion

With our experience in digital social programs such as Auxílio Brasil and PIX, we have the know-how to develop AI applications that reduce inequalities rather than amplify them.

2. Agribusiness and Sustainability

We are world leaders in agtech. AI applied to sustainable agriculture can be our global competitive edge.

3. Public Health

The SUS, despite its limitations, is one of the largest public health systems in the world. AI for public health management and care has transformative potential.

4. Digital Democracy

We can lead discussions on how to use AI to strengthen, not weaken, democratic processes.

How to prepare for this transition

Some practical recommendations for professionals and companies:

For Professionals:

• Invest in continuous learning: AI is evolving fast, be curious
• Develop complementary skills: Focus on what humans do best
• Try out tools: Use AI in your daily life to understand limitations and potential
• Build a network: Connect with other professionals navigating the same transition

For Companies:

• Start with specific use cases: Don't try to revolutionize everything at once
• Invest in training: Your team needs to understand AI to use it well
• Establish governance: Define clear usage policies
• Measure results: AI must generate measurable value

The Historic Moment We Can't Waste

We are living in a unique moment in Brazilian history. We have a government investing massively in sovereign AI, a mature start-up ecosystem, quality universities and an active digital society.

The challenge isn't technological, it's strategic. We need to navigate the tension between automation and employment, innovation and ethics, competitiveness and inclusion.

The debate in the House on intellectual property in the use of generative AI shows that these discussions are maturing. But we need to speed things up.

We can't repeat the mistakes of the past, when we missed windows of opportunity in disruptive technologies due to a lack of integrated strategic vision.

AI as a Sovereignty Tool

What excites me most about Brazil's strategy is its focus on sovereignty. It's not about technological isolationism, but about national capacity to define our own ethical and strategic parameters for AI.

When Google launches the “Nano-banana” for image generation and the CNN questions Google's leadership in AI, or when we see operators charging scale and legal certainty for AI, It's clear that the global game is just beginning.

Brazil has all the conditions to be a protagonist, not just a passive consumer of technologies developed in other countries.

A Final Reflection: AI and Purpose

In all this discussion about investments, regulation and the labor market, we can't lose sight of one fundamental issue: what is AI for?

Technology is a powerful tool, but tools have no purpose of their own. The purpose comes from the humans who use them.

If we only use AI to optimize profits and reduce costs, we will reproduce existing inequalities on an amplified scale. But if we use it to expand opportunities, democratize access to knowledge and solve complex social problems, we can build a fairer and more prosperous future.

The choice is ours. And the time is now.

In my mentoring work with startups and companies, I have seen that the most successful organizations in adopting AI are those that start with a clear purpose and stay true to their values while experimenting with new technologies. It is this balance between innovation and humanity that can make Brazil a global benchmark in responsible AI.