Canada AI regulation: what applies now
Canada's proposed federal AI law, the Artificial Intelligence and Data Act (AIDA), did not become law. It was part of Bill C-27, which died when Parliament was prorogued in January 2025. As far as we know, there is still no federal AI-specific statute in force, but several existing rules apply to AI.
Privacy law is the main constraint
- PIPEDA governs how private-sector organisations collect, use and disclose personal information in commercial activity across much of Canada. If your AI processes personal data, PIPEDA principles on consent, purpose and accountability apply.
- Quebec Law 25 adds stronger privacy duties, including transparency when a decision is made exclusively by automated processing, and rights to ask about it.
- Other provinces such as Alberta and British Columbia have their own private-sector privacy laws.
Public sector rules
The federal Directive on Automated Decision-Making sets requirements for government use of automated systems, including impact assessments. Ontario has also passed legislation setting rules for AI use in its public sector.
Voluntary codes
Canada introduced a voluntary code of conduct for advanced generative AI systems in 2023. It is not law, but signing on can matter commercially and for reputation.
Other laws still apply
Human rights law, consumer protection law and sector rules (financial services, health) apply to AI-driven decisions just as they do to human ones.
What may change
The federal government has said it wants to take a different approach to AI policy than AIDA, but timing and form are uncertain. Check official announcements before assuming anything.
Practical steps
- Treat privacy compliance as your core AI compliance task in Canada.
- If you serve Quebec, check Law 25 requirements on automated decisions.
- Document your AI systems and decision logic so you can explain outcomes.
- If you also serve EU customers, check the EU AI Act, because Canadian companies can fall under it.
Official sources: the Office of the Privacy Commissioner of Canada and the Treasury Board Secretariat.
This article is general information, not legal advice. Rules change often, so check official sources before you rely on it.