A race to regulate: Canada falls behind as the EU sets AI legislation – Future of Good A race to regulate: Canada falls behind as the EU sets AI legislation – Future of Good

Now that the European Union has introduced artificial intelligence (AI) legislation, the expectation will be for Canada to make a further attempt at new regulations, having seen a previous effort in the form of Bill C-27 die when Parliament was prorogued in January 2025. It will be important that new Canadian AI regulations don’t discourage companies from operating or investing here, says partner Michael Fekete, Technology, in an interview with Future of Good.

“The biggest element of economic growth will come from adoption,” says Michael. “We have to be very careful not to create impediments to adoption where the cost of compliance can discourage adoption.”

Michael says over-regulation risks putting Canadian businesses at a global disadvantage. “We want to leverage AI to help generate economic well-being and to remain competitive on a global scale,” he says.

Flexible legislation is essential. “We need to be in a position to respond to risks if and when they arise,” says Michael. “The (EU) AI Act highlights just how hard it is to regulate AI.”

In 2025, Prime Minister Carney appointed Evan Solomon as Canada’s first AI minister and launched a national 30-day consultation to shape a new AI strategy, with more than 11,000 Canadians contributing. The government is working to update legislation to address deepfakes, strengthen election rules, modernize privacy legislation and introduce new protections against online harms. No timeline has been established for when a new piece of legislation could be proposed.

Read the full article by Abigail Turner posted on May 6, 2026.