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Federal Privacy Law Bill C-27 Will Bring Potential Changes to AI Sector

Changes could be coming for AI Systems in Canada.

On June 16, 2022, Bill C-27 was introduced in the House of Commons. This will be the first federal law for regulating the creation and use of Artificial Intelligence (AI).

Bill C-27 is part of a worldwide push to create and strengthen privacy regulations and follows GDPR (General Data Protection Regulation) in the European Union and Bill 64 in Quebec. Bill C-27 proposes to enact AIDA (Artificial Intelligence and Data Act).

AIDA will regulate interprovincial and international trade and commerce in AI systems. This will be done by creating common requirements for designing, developing, and using AI across Canada. This Act will prohibit certain conduct with AI systems that have the potential to harm an individual physically or psychologically, the individual’s property, or economically.

AIDA focuses on regulating organizations involved in designing, developing, and making AI systems available for use, as well as managing operations. Prohibited activities include unlawfully obtaining personal information using an AI system, physical or psychological harm, or property damage due to an AI system, and using an AI system to defraud the public and cause economic loss.

AIDA has requirements for general AI systems and “high-impact” systems. The regulations for these systems have yet to be drafted. Organizations will need to assess their systems and decide if they fit into general or high-impact. 

AIDA will provide the Minister with order-making power, as well as audit rights. The Minister can appoint an Artificial Intelligence and Data Commissioner to assist in the administration and enforcement of AIDA. There will be administrative penalties, fines, or imprisonment for non-compliance. 

Bill C-27 will be enacted when a date is set by order of the Governor in Council. The bill has not yet been passed, it is only in the second reading stage. As it goes through Parliament, there will be more amendments and debates.

 For further information, read Bill C-27: Canada Reintroduces Sweeping Changes to Federal Privacy Law, Proposes New AI Legislation

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