Brazil Partners with OpenAI to Cut Legal Costs with AI Solutions

Brazil's government has enlisted the help of OpenAI to streamline the analysis and review of thousands of lawsuits using artificial intelligence (AI). This initiative aims to prevent costly court losses, which have increasingly burdened the federal budget.

AI-Powered Legal Insights

The AI service will assist the government by identifying the need for proactive measures in ongoing lawsuits before final decisions are made. It will also map trends and pinpoint potential action areas for the solicitor general's office (AGU). This strategic approach is intended to enhance the government's ability to manage and mitigate legal risks.

Microsoft and OpenAI Partnership

Microsoft will provide these AI services through its Azure cloud-computing platform, leveraging technology from OpenAI, the creator of ChatGPT. While the exact cost of these services to Brazil has not been disclosed, the investment reflects the government's commitment to leveraging advanced technology for improved efficiency in legal processes.

Rising Court Costs and Budget Impact

Court-ordered debt payments have been consuming a significant portion of Brazil's federal budget. The government projects that next year, it will spend 70.7 billion reais ($13.2 billion) on judicial decisions that are no longer subject to appeal. This amount does not include smaller claims, which historically add up to around 30 billion reais annually.

The total expenditure of over 100 billion reais marks a sharp increase from 37.3 billion reais in 2015. This figure represents approximately 1% of the country's gross domestic product (GDP) and is 15% more than the government's anticipated spending on unemployment insurance and wage bonuses for low-income workers next year.

AI as a Support Tool, Not a Replacement

AGU has emphasized that the AI project will not replace the work of its staff. Instead, it is designed to enhance their efficiency and accuracy, with all activities being fully supervised by humans. This ensures that the technology serves as a supportive tool rather than a substitute for human expertise.

Investment in Technology

In March, the Planning Ministry allocated 25 million reais in supplementary credits to AGU. This funding is intended to support initiatives such as the implementation of strategic information technology projects, including the integration of AI into legal processes.

Summary

Brazil's collaboration with OpenAI signifies a proactive step towards managing the increasing financial burden of court-ordered payments. By leveraging AI, the government aims to enhance its legal analysis capabilities, reduce costs, and improve overall efficiency in handling lawsuits.