FROM FOSTERING INNOVATION TO REGULATORY BURDEN: THE BRAZILIAN STARTUP LEGAL FRAMEWORK, ARTIFICIAL INTELLIGENCE, AND PROPORTIONALITY IN BILL Nº 2.338/2023

Abstract

This article aims to analyze the regulatory tension between the Legal Framework for Startups and Innovative Entrepreneurship, established by Complementary Law No. 182/2021, and Bill nº 2.338/2023, which regulates the development and use of artificial intelligence in Brazil. Starting from a brief historical overview of entrepreneurship and the origin of startups, the study examines the structural barriers to entrepreneurship in the country, the foundations of the Legal Framework, and the role of artificial intelligence as a driver of scalability and business model transformation, identifying the main legal risks arising from its use. Based on the analysis of Bill nº. 2.338/2023, the article discusses to what extent the governance, transparency, and accountability obligations it establishes, as well as the sanctioning regime it provides for, may represent a disproportionate regulatory burden on startups, undermining the progress achieved by the Legal Framework. For this purpose, the study will adopt a theoretical research methodology, based on a comprehensive review of the relevant literature and legal scholarship.