Meta halts AI tools in this country because of "imminent risk of damage" to "fundamental rights"

Brazil and its 200-million population won't be subjected to some of Meta's AI tools, after the company decided to pause the use of such generative AI tools there. That's in response to a government's objection to Meta's privacy policy regarding personal data and AI.

In June, Meta held an event in São Paulo to launch its first AI-driven ad targeting program for businesses on WhatsApp. With a population exceeding 200 million, Brazil is a key market for Meta. For example, the country is the second-largest user base for WhatsApp, Meta's popular messaging service, after India.

Earlier this month, Brazil's National Data Protection Authority (ANPD) suspended Meta's new privacy policy for using personal data to train generative AI systems. ANPD ruled that Meta must amend its privacy policy to exclude the processing of personal data for generative AI training.

This decision follows ANPD's immediate suspension of Meta's new privacy policy, announced two weeks prior. The suspension, published in Brazil's official gazette on Tuesday, halts the processing of personal data across all Meta products, affecting even non-users of Meta's platforms.

ANPD warned of a daily fine of 50,000 reais (approximately $8,836) for non-compliance, citing "imminent risk of serious and irreparable or difficult-to-repair damage to the fundamental rights of affected holders".

Meta expressed disappointment in ANPD's decision, calling it a "setback for innovation" that will delay the benefits of AI for Brazilians. Meta is required to revise its privacy policy and officially confirm the suspension of personal data processing for AI training.

In a statement, Meta said it is suspending its AI tools while negotiating with ANPD to resolve concerns about generative AI.