Regulations · Canada
AI REGULATION

Canada

PROPOSED

Canada's proposed AIDA would create a federal AI regulatory framework focused on high-impact systems, though the bill died when Parliament was dissolved in 2025.

KEY LEGISLATION 4 laws
Artificial Intelligence and Data Act (AIDA) - Bill C-27 PROPOSED
2022-06
Would establish requirements for high-impact AI systems including risk assessments, transparency, and bias mitigation
Voluntary Code of Conduct on Generative AI ENACTED
2023-09
Voluntary commitments for generative AI developers covering safety, transparency, and fairness
Directive on Automated Decision-Making ENACTED
2019-04
Requires federal government agencies to assess and mitigate risks of automated decision systems
Pan-Canadian AI Strategy ENACTED
2017-03
National AI research and talent strategy with $2.4 billion in funding through CIFAR
ANALYSIS

Regulatory Landscape

Canada was an early mover in AI governance, launching the world’s first national AI strategy in 2017 and implementing automated decision-making requirements for federal agencies in 2019. However, comprehensive federal AI legislation remains elusive after AIDA (the Artificial Intelligence and Data Act) died with the dissolution of Parliament in early 2025.

Canada’s approach reflects its position as a significant AI research hub—home to pioneers like Yoshua Bengio, Geoffrey Hinton, and major research labs—balanced against the desire to maintain competitiveness with the US.

Key Laws

AIDA, introduced as part of Bill C-27, would have established requirements for “high-impact” AI systems including mandatory risk assessments, measures to address bias, transparency obligations, and the creation of an AI and Data Commissioner. The bill underwent extensive committee review but did not pass before Parliament dissolved.

The Directive on Automated Decision-Making, applying to federal government systems, requires algorithmic impact assessments, peer review for high-impact systems, and meaningful explanations for affected individuals. It serves as a model for what federal AI regulation might look like.

The voluntary code of conduct for generative AI, signed by major companies operating in Canada, covers safety testing, transparency, content labeling, and research collaboration.

Enforcement

Currently, enforcement relies on existing authorities: the Privacy Commissioner for data-related AI issues, the Canadian Human Rights Commission for discrimination, and sector-specific regulators. The proposed AI and Data Commissioner would have had dedicated AI enforcement powers.

Business Impact

The regulatory uncertainty following AIDA’s failure to pass creates a gap for businesses seeking clear compliance frameworks. Many Canadian AI companies default to EU AI Act compliance given its extraterritorial reach and the likelihood of serving EU customers. Canada’s strong AI research ecosystem continues to attract investment despite regulatory ambiguity.