SAO PAULO (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.