In 2023, Brazilian senators introduced Project Law 2.338/23 (PL), aimed at regulating the use of Artificial Intelligence in Brazil. The Law underwent a public referendum, resulting in 31,547 votes against and 35,806 in favor, reflecting a modest portion of the country’s population, which exceeds 220 million. Despite debates regarding the representativeness of this voting outcome, the project Law (PL) received approval and is currently under consideration in legislative houses. The project Law 2.338/23 currently comprises 80 Articles, including provisions for establishing new government organizations, such as the National System for Regulation and Governance of Artificial Intelligence (Sistema Nacional de Regulação e Governança de Inteligência Artificial—SIA). This legislation has far-reaching ethical, epistemic, and social implications, many of which remain underexplored. This text explores the epistemic, legal, and ethical dimensions of Project Law 2.338/23 (PL), evaluating it in light of AI academic literature and the European AI Act. Our analysis will focus on two primary objectives. They are: first, to identify general epistemic, ethical, and legal issues within the PL; and second, to examine two critical concerns in AI: the classification of risk outlined in the PL and the lack of a precise definition of transparency in the context of AI. By examining these foundational aspects, we identify potential risks and suggest improvements to establish a more robust framework. Ultimately, this study seeks to serve as a valuable resource for academics, policymakers, and stakeholders, contributing to the creation of a legally sound, ethically responsible, and epistemically rigorous framework for AI governance in Brazil.