Microsoft President Brad Smith warns AI is less regulated than milk
Microsoft President Brad Smith called for global AI safety regulations, warning that advanced technology faces fewer rules than household items like milk.
In a blunt assessment of the global technology landscape, Microsoft President Brad Smith warned on Monday that advanced artificial intelligence systems currently face fewer safety regulations than a common carton of milk or a household washing machine. Speaking to the BBC, Smith advocated for a robust international framework that includes mandatory independent safety evaluations, formal incident reporting, and "kill switches" to halt autonomous AI agents if they escape human control.
The warning from one of the tech industry’s most prominent executives highlights a growing regulatory vacuum. While tech giants have recently agreed to voluntary safety pacts—including pledges to work with independent auditors—Smith argued that voluntary measures are no longer sufficient to protect the public. He emphasized that while responsible companies will willingly take safety precautions, mandatory rules are necessary to govern less responsible actors in the rapidly expanding AI sector.
This debate carries significant weight for emerging economies like Brazil, which are rushing to establish their own digital guardrails. The Brazilian Congress is currently debating Bill No. 2338/2023, also known as the Legal Framework for Artificial Intelligence (Marco Legal da IA). Introduced by Senate President Rodrigo Pacheco, the bill passed the Federal Senate in late 2024 and is currently under review in the Chamber of Deputies. Heavily inspired by the European Union’s AI Act, the Brazilian proposal seeks to establish a risk-based classification system for AI tools, imposing strict governance rules and civil liability on developers.
Under the current draft of the Brazilian bill, companies that fail to comply with safety and transparency standards could face severe administrative sanctions. Penalties include daily fines and blockages, with maximum financial penalties reaching up to 50 million reais (approximately $9 million USD) or 2% of the company's annual turnover in Brazil. Tech companies operating in the country are closely watching the legislative process, as the final text will dictate how international platforms deploy autonomous agents and consumer-facing AI products in Latin America’s largest economy.
What it touches
The push for formal AI regulations directly impacts major technology companies expanding their digital footprints in South America. In Brazil, tech giants like Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) are heavily exposed to these regulatory shifts as they invest in local cloud infrastructure and enterprise software. If Bill No. 2338/2023 is enacted in its current form, these companies will face increased compliance costs, mandatory risk audits, and potential administrative liabilities for their AI operations in the Brazilian market.