Canada’s journey towards regulating Artificial Intelligence (AI) reached a significant milestone with the introduction of the Artificial Intelligence and Data Act (AIDA) as part of Bill C-27, the Digital Charter Implementation Act, 2022. This legislation aimed to ensure the responsible development and deployment of AI systems while establishing a comprehensive regulatory framework. The core objective of AIDA was to mitigate potential harms and biases associated with AI technologies, ensuring their responsible use in both the public and private sectors.
AIDA’s Ambitious Objectives
The primary goals of AIDA were twofold:
- Regulatory Framework: AIDA sought to oversee international and interprovincial trade and commerce in AI systems by setting common requirements for their design, development, and use across Canada.
- Prohibition of Harmful Practices: The Act aimed to forbid activities related to AI systems that could cause significant harm to individuals, including physical or psychological harm, property damage, or economic loss.
The Legislative Journey
Introduced in June 2022, AIDA faced extensive scrutiny and debate in parliamentary committees. Many stakeholders, including industry representatives, labour organisations, and advocacy groups, expressed concerns about the scope of the Act; the delegation of regulatory powers, and the adequacy of public consultations. Critics highlighted that several key provisions were vague, leaving important definitions and enforcement mechanisms to be determined through future regulations, which were not yet available for public review.
Parliamentary Developments
As political dynamics shifted, the prorogation of Parliament and the looming federal election caused delays in AIDA’s progress. The Act stalled in committee and did not advance to the final stages of approval.
Current Status and Future Outlook
As of early 2025, AIDA has not been enacted into law. This absence of a national AI regulatory framework has led both public and private sectors to seek interim measures. In response, the Government of Canada introduced a Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems. This code provides guidelines for AI developers and users, emphasising principles such as accountability, safety, fairness, transparency, human oversight, and robustness, pending more formal regulations.
Implications for AI Governance
The challenges faced by AIDA underline the complexities involved in regulating rapidly evolving technologies like AI. It is clear that a balanced approach is necessary—one that fosters innovation while safeguarding ethical standards and maintaining public trust. Moving forward, Canadian policymakers must engage in thorough consultations with all relevant stakeholders, including industry leaders, labour organisations, academia, and civil society, to develop a regulatory framework that is effective and adaptable to the fast-paced nature of AI technologies.
Link to 360 Business Law
As AI continues to transform industries worldwide, businesses must stay informed about emerging legal frameworks and regulations that may impact their operations. At 360 Business Law, we provide expert legal guidance to help navigate the complexities of emerging technologies like AI.