Canada Still Has No Meaningful AI Regulation
Introduction
Policymakers and industry leaders have spent years making promises regarding how advances in digital technology and artificial intelligence (AI) will transform the economy and everyday life. The Canadian federal government has proposed over $1 billion over the next five years to build up Canada’s AI and quantum computing ecosystems while embedding AI technology deeper into federal operations.
Current AI Regulatory Landscape
In navigating a tumultuous shift in Canada’s relationship with the United States, Prime Minister Mark Carney’s government advocates for an AI approach centered on AI and data sovereignty. However, AI Minister Evan Solomon insists on moving away from “over-indexing on warnings and regulation” to ensure economic benefits from AI.
Yet, Canada’s failure to regulate the development and implementation of AI technologies remains a significant problem. Despite developing many non-binding frameworks, Canada lacks binding AI regulation, leaving Canadians vulnerable to privacy and human rights harms from AI.
Government Initiatives
In September 2025, the federal government launched an AI Strategy Task Force and a 30-day “national sprint” to gather public input for a renewed AI Strategy. However, this initiative has missed the mark, as highlighted by human rights and civil liberties organizations. They argue that Canadians cannot have sovereignty over a technology without proper protections against its harms.
Previous Attempts at AI Policy
In 2022, the Artificial Intelligence and Data Act (AIDA) was Canada’s first attempt to regulate AI and address concerns regarding privacy and human rights. However, it was criticized for its exclusionary public consultation process and lack of independent regulatory oversight. The AIDA focused on high-impact AI systems but failed to consider environmental and community-level impacts.
Critics highlighted that the AIDA did not protect the most vulnerable populations against AI harms, and federal consultations prioritized private sector interests over marginalized communities. Ultimately, Bill C-27, associated with AIDA, lapsed when former Prime Minister Trudeau resigned, leaving Canada without binding legal obligations for AI.
Recent Developments
On February 3, 2026, Innovation, Science and Economic Development Canada released the results of its national sprint, echoing concerns raised by human rights groups. Issues highlighted include privacy, safety, transparency, accountability, and systemic bias. The pressing need for effective legislative guardrails to harness the potential of AI and mitigate its harms remains unaddressed.
Recommendations for Meaningful Regulation
As AI technologies evolve rapidly, a more holistic approach is necessary for assessing AI use and its impacts. The federal government should consider establishing a complaint mechanism for AI-related harms, potentially through an AI federal ombudsperson or collaboration with the Canadian Human Rights Commission.
Additionally, mechanisms for investigation and enforcement, such as an AI and Data Commissioner, should be implemented to proactively assess AI-related harms. The government must reconcile AI regulations with the economic benefits of these technologies, introducing legally binding instruments that protect Canadians.
Moreover, Canada should adopt a tiered risk-based approach to categorize AI systems, similar to the European Union’s model, which categorizes systems based on their risk levels. This would enable a more nuanced assessment of potential harms beyond just high-impact systems.
Conclusion
As AI technological advancements accelerate, the absence of effective policies and regulations puts Canadians at risk. A diligent and collaborative effort to create and implement AI policies centering on human rights is imperative to ensure that the benefits of AI do not come at the cost of privacy, dignity, and safety.
