Canada’s AI Laws Delayed? Québec Leads Ethical Innovation

AI Regulation | Sep 17, 2024

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Federal Election Could Delay or Change Canada's AI Regulation under AIDA

Canada's AI regulations are still developing but they seek to combine federal and provincial initiatives to create a balance between promoting innovation and responsible AI. Quebec is at the forefront of ethical governance with the Montréal Declaration for Responsible AI and 10 Principles for Public Bodies, while other provinces are aligning frameworks to comply with the proposed federal regulations known as the Artificial Intelligence and Data Act (AIDA), consistent with global AI regulatory standards.  This article provides an overview of the developments in Canadian AI regulation.

1. The Artificial Intelligence and Data Act (AIDA) - Federal AI Regulation

The most significant attempt at AI regulation in Canada federally is the Artificial Intelligence and Data Act (AIDA), which is a part of Bill C-27 that was introduced in 2022. AIDA is intended to control the development and commercialization of AI, especially for 'high impact' systems.  Once enacted, AIDA will impose regulatory requirements on businesses including risk assessment, bias reduction, and transparency, and would be overseen by a newly appointed AI and Data Commissoner with non-compliance resulting in penalties.  AIDA is aligned with emerging global AI standards including the Organization for Economic Co-operation and Development (OECD) and the European Union's Artificial Intelligence Act.

However, Bill C-27 is progressing slowly through Parliament and has faced delays.  Combined with a federal election now on the table, there is growing uncertainty that legislative disruptions and changing policy priorities may result in the bill either being amended or shelved.  In either case, it means that Canada's approach to AI regulation could fall further behind compared to other jurisdictions.

In September 2023, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry announced a voluntary code of conduct for the responsible development and management of advanced GenAI systems, providing a voluntary common standard to follow until formal regulations are in place.

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So, depending on the results of the election and the goals of the next administration, a federal election may create uncertainty about the direction of AI legislation in Canada, which might postpone or change AIDA's future.

2. Québec Leads AI Governance

Québec is a pioneer in AI governance in Canada, a stark contrast to the federal government's snails pace.  The province has actively created ethical frameworks and guiding principles to influence the application of AI across sectors.

Montréal Declaration for Responsible AI

In 2018, Québec introduced the Montréal Declaration for Responsible AI, a groundbreaking document that outlined ten key ethical principles for the responsible development of AI.  The AI declaration statement was a collaborative effort between industry stakeholders, researchers and human rights/ethics experts.  It serves as a template for commercial ventures to use when developing their AI initiatives.

• Well-being
• Autonomy
• Privacy and intimacy
• Solidarity
• Democracy
• Equity
• Inclusion
• Prudence
• Responsibility
• Sustainability​

Over 277 organizations dedicated to ethical AI have signed the Montréal Declaration for Responsible AI across a range of industries from healthcare to academia. Currently, there are over 277 organizations that have signed the declar, demonstrating the broad support for Québec's leadership in ethical AI research. Below are a few notable signatures:

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• Ville de Montréal
• Mila (Quebec’s leading AI research institute)
• IVADO (Institute for Data Valorization)
• Université McGill
• Centre hospitalier de l’Université de Montréal
• Montreal AI Ethics Institute
• OpenNorth
• Imagia​

Québec’s Ten Principles for Public Bodies

In February 2024, a new Statement of Principles for the Responsible Use of Artificial Intelligence by Public Bodies (French only) was adopted by the Ministère de la Cybersécurité et du Numérique (MCN), providing comprehensive guidelines on how public entities should use AI properly. These 10 guidelines highlight a number of fundamental ideas and are in line with both international standards and AIDA's goals:

• Respect for individual rights and the rule of law
• Inclusion and equity
• Reliability and robustness
• Security
• Efficiency and effectiveness
• Sustainability
• Transparency
• Explainability
• Responsibility
• Competence​

3. Ontario, British Columbia, Alberta

British Columbia, Ontario, and other provinces are all moving closer to regulating AI but are more the consultation phase compared to Quebec's more established frameworks.

Ontario is focusing on developing a framework for consultation on Trustworthy AI. Transparency in autonomous decision making and making sure the public is informed when AI is engaged in choices that impact them are two primary areas of concern. Ontario has also stressed the freedom to challenge judgments made by AI and is pursuing legislative changes that would probably comply with federal AIDA regulations.

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BC and the Yukon are researching the application of AI in public sector services with regards to justice, accountability, and openness. Similar to Ontario, BC has emphasized the importance of informing individuals when AI is used in decision making and allowing individuals to question or dispute AI judgments.

Alberta has not yet developed any specific AI policy equivalent to Montreal's declaration, however Alberta is home to the Alberta Machine Intelligence Institute (Amii), which encourages responsible AI development and study, and is a key player in Canada's artificial intelligence ecosystem (prioritizing research over regulation).

Conclusion

With Québec setting the example with its ethical principles and the Montréal Declaration, Canada is heading toward a more organized approach to AI governance. AIDA is a major step forward for the federal government, but its future is questionable because of legislative delays. As AI becomes more integrated into the public and business sectors, there is growing support to harmonize AI governance across Canada.

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