SAO PAULO, July 17 (Reuters) - Meta Platforms ( META )

said on Wednesday it decided to suspend use of generative

artificial intelligence tools in Brazil in response to the

government's objections to its new privacy policy regarding

personal data and AI.

WHY IT'S IMPORTANT

With more than 200 million people, Brazil is a crucial

market for Meta. For example, Brazil has the second-largest

user base for Meta's WhatsApp after India.

In June, Meta hosted an event in Sao Paulo to launch its

first AI-driven ad targeting program for businesses on the

popular chat service.

CONTEXT

Earlier this month, Brazil's National Data Protection

Authority (ANPD) decided to suspend with immediate effect the

validity of Meta's new privacy policy for the use of personal

data to train generative artificial intelligence systems in the

country.

ANPD ruled that the company would need to adapt its privacy

policy to exclude the section related to the processing of

personal data for generative AI training, according to the

Brazilian authority.

KEY QUOTE

In a statement, Meta said it has decided to suspend the

tools while it is in talks with ANPD to address the authority's

doubts over generative artificial intelligence.