Regulation of AI in Canada
Things to know
- There is no law in Canada that sets out a general framework for regulating AI models and systems. The bill that included Canada’s proposed Artificial Intelligence and Data Act (AIDA) died on the Order Paper when Parliament was prorogued on January 6, 2025.
- The Department of Innovation, Science and Economic Development has published a voluntary code of conduct applicable to generative AI systems that have advanced capabilities enabling them to be adapted for a wide variety of uses in different contexts. Developers and managers of advanced generative systems that become signatories to the code make commitments in respect of accountability, safety, fairness and equity, transparency, human oversight and monitoring, and validity and robustness.
- There are multiple laws of general application that govern specific elements of the development and use of AI models and systems. Relevant laws include:
- federal and provincial privacy laws which regulate the collection, use and disclosure of personal information in the context of the training of AI models and the generation of output. Privacy laws in Quebec include additional rules applicable to automated decision systems
- copyright law which is relevant to the generation of training datasets, the training of AI models, and the generation of model output
- federal and provincial human rights laws which prohibit discrimination on enumerated grounds (including race, colour and gender) in specific contexts (including employment and the provision of goods, services, facilities and accommodation)
- tort laws (and similar provisions in Quebec’s Civil Code) which hold organizations or individuals liable for damages caused through their negligence, including for products that they create or deploy. Other potentially relevant torts include defamation, misrepresentation, intentional infliction of mental distress, placing a person in a false light, and non-consensual distribution of intimate images
- competition law which govern agreements, conduct and transactions that may prevent or lessen competition, and has been identified as a key area of focus given AI’s potential to facilitate anti-competitive practices, such as collusion and deceptive marketing
- employment laws, which regulate the use of AI in employment contexts such as hiring, monitoring, performance evaluation and termination
- Sector-specific requirements applicable to the use of AI models and systems also exist, including in connection with:
- financial services (e.g., guidelines of the Office of the Superintendent of Financial Institutions that govern the use of models)
- capital markets (e.g., Staff Notice and Consultation of the Canadian Securities Administrators on how securities legislation applies to the use of AI)
- transportation (e.g., regulations applicable to the testing and use of autonomous vehicles on public roadways)
- legal services (e.g., guidelines issued by provincial law societies applicable to the use of generative AI by lawyers)
- public sector entities (e.g., guide for federal institutions on the use of generative AI)
Things to do
- Identify all existing laws and regulator guidance that may apply to your development or use of AI models or systems.
- Monitor legislative developments at the federal, provincial and municipal levels of government to identify regulatory requirements that may apply to your activities.
- Monitor guidelines, directives and decisions of regulators for rules governing the development or use of AI models or systems.
- Consider if, or to what extent, laws of other jurisdictions (such as the E.U.’s Artificial Intelligence Act) may apply to your AI-related activities.
Useful resources
- “Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems,” Innovation, Science and Economic Development Canada, September 2023
- “Ethical Design and Use of Artificial Intelligence by Small and Medium Organizations,” Digital Governance Council, CAN/DGSI 101:2025
- “Artificial intelligence and competition – Discussion Paper,” Competition Bureau of Canada, March 2024
- “Consultation on Artificial Intelligence and Competition: What We Heard,” Competition Bureau of Canada, January 27, 2025
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