Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
Experts Urge for AI Regulation: How is Canada Responding?
AI Regulation | Jul 31, 2023
As AI technology advances rapidly, experts urge for regulation. How is Canada responding?
Urgent Call for Regulation
AI pioneers and industry leaders, including CEOs of OpenAI and Google Deepmind, have issued warnings about the rapid development of AI technology. They have called for a global priority to mitigate the risk of extinction from AI, alongside other societal-scale risks such as pandemics and nuclear war.
See: Human Rights and Artificial Intelligence Governance
Canada has been part of the effort to draft a voluntary code of conduct for the AI industry, led by the United States and the European Union. Innovation Minister François-Philippe Champagne has been directly involved with his EU and US counterparts on this matter. Furthermore, a group of MPs and Senators are spending the summer meeting with those involved in AI to understand the issues better.
Top 5 Risks and Concerns
1. Data Privacy and Security
Without regulation, there's a risk that AI systems could misuse or mishandle consumer data, leading to breaches of privacy and potential identity theft. Businesses could also suffer from data breaches, leading to loss of customer trust and potential legal repercussions.
2. Bias and Discrimination
AI systems can unintentionally perpetuate and amplify societal biases if they're trained on biased data. This could lead to unfair outcomes in areas like hiring, lending, and law enforcement, affecting both consumers and businesses.
3. Lack of Transparency and Accountability
AI algorithms can be complex and opaque, making it difficult for consumers to understand how decisions about them are being made. This lack of transparency can also make it hard to hold businesses accountable for the actions of their AI systems.
4. Job Displacement
AI has the potential to automate many jobs, leading to displacement of workers. While new jobs may be created, the transition could be difficult for many workers and businesses.
5. Market Concentration
Without regulation, a few large tech companies could dominate the AI market, stifling competition and innovation. This could lead to higher prices and fewer choices for consumers, and make it harder for other businesses to compete.
See: Balancing AI Innovation and Intellectual Property Rights: Key Insights from the U.S. Senate Subcommittee Hearing
Canada's Legislative Response
The Canadian government is working on the Artificial Intelligence and Data Act (AIDA), which would introduce new obligations for "high impact" AI systems. However, the legislation is broad and leaves many specifics undefined until regulations are adopted. There have been calls for the government to prioritize this bill and ensure it is agile enough to address the rapid changes in AI technology.
See: How AI is Shaping the Future of Financial Services in Canada
Conclusion
As AI technology continues to evolve at a rapid pace, the need for regulation becomes increasingly urgent. Canada, as a significant player in the AI field, has a crucial role in shaping these regulations. The country's actions in the coming months, particularly regarding the Artificial Intelligence and Data Act, will be pivotal in setting a precedent for AI governance.
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