Regulating the development and use of AI has become a key focus for governments around the world, with an emphasis on accountability, transparency, and mitigating potential risks. This comes as no surprise given the current context and speed of development of these technologies. The opportunities AI presents to solve anything from the climate crisis to help cure human diseases are as present as the potential threats it presents, such as misinformation or fear of AI “outsmarting” humans. Targeted AI regulation would create the need for both developers and users to implement AI compliance programs and governance regimes within their organizations.
Canada has been working on a regulatory response to AI in the form of the Artificial Intelligence and Data Act (“AIDA”), part of Bill C-27. AIDA would impose safeguards aimed to generate a foundation for the responsible design, development, and deployment of AI systems in Canada.1 AIDA has generated significant debate in Canada, both in Parliament and the general community. AIDA is quite controversial as key aspects of the law are at issue, as it is unclear which types of AI would be caught by relevant laws. In the interim, a voluntary AI code of conduct exists to guide industry stakeholders through the responsible development and management of AI systems.
Canada is not first past the post in this initiative. Several other countries have already adopted or are currently working on their development of AI legislation and regulations.
The European Union (“EU”) introduced the first comprehensive legal framework on AI, the Artificial Intelligence Act (the “EU AI Act”). The EU AI Act seeks to foster safe and trustworthy AI development and uptake across the EU. The EU AI Act applies a mechanism to regulate AI systems proportionately to the level of risk they pose. While the EU AI Act entered into force on August 1, 2024, certain provisions will not be enforced until specified times within the next three years, giving countries within the EU a transition period to bring themselves in compliance with the new legislation. The EU AI Act is more prescriptive than what is being proposed in Canada’s AIDA (which leaves more detail to be provided by regulation at a later date). The EU AI Act will no doubt have a significant impact on Canadian developers and users of AI, and will very likely inform any future Canadian-grown AI legislation. Some AI applications may be strictly regulated while others may be prohibited altogether.
The United States are currently experiencing a change of tone regarding AI regulation. Joe Biden’ Executive Order, introduced in late 2023, surpassed prior efforts, moving beyond high-level principles to create tangible obligations for government bodies and tech companies. President Trump’s Executive Order (January 23, 2025) has since revoked the Biden AI Executive Order, and it calls for a rescission of all actions that are “inconsistent with enhancing America’s leadership in AI.” Several US States, on the other hand, have either signed laws aimed at AI regulation (California, Colorado, and Utah) or are in the process of considering legislative proposals covering transparency, governance, and individual rights.
China has been the subject of attention through its public declarations that promote international cooperation and governance in the field of AI. China’s technological and financial partnerships with emerging economies will likely contribute to shape the landscape of AI governance going forward.
Organizations involved in the development or use of AI are faced with the challenge of identifying and complying with international regulatory regimes, as well as with consumer and customer expectations, which includes ethical considerations that surround the use of AI. In this dynamic environment, the ability of organizations to proactively adapt and contribute to the shaping of responsible AI governance will be pivotal for its successful integration in Canada.
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- With the recent resignation of Prime Minister Trudeau, Parliament will be prorogued until March 24, 2025. As a result, AIDA and Bill C-27 have died on the Order Paper, and the Standing Committee on Industry and Technology’s work with Bill C-27 has ceased as of Jan 6, 2025. ↩︎
