Canada’s Minister of Innovation, Science and Industry has sponsored a new law: the Artificial Intelligence and Data Act.
In short, the proposed law requires organisations that develop high-impact AI systems to identify, assess, and mitigate the risk of harm and bias.
Why does this Act exist?
- To regulate international and interprovincial trade and commerce in AI systems by establishing common requirements, applicable across Canada, for the design, development and use of those systems; and
- To prohibit certain conduct connected with AI systems that may seriously harm individuals or harm their interests.
Interpreting the Act
The Ministry proposed the Artificial Intelligence and Data Act with two other laws:
- the Consumer Privacy Protection Act; and
- the Personal Information and Data Protection Tribunal Act.
So, when you interpret the Artificial Intelligence and Data Act, you should do so with the other Acts.
Who does the Act apply to?
Everyone but government institutions
The Act applies to anyone who designs, develops, deploys, or operates an AI system (aka the responsible person).
However, the Act doesn’t apply to government institutions. It also doesn’t apply to an AI product, service or activity under the direction or control of:
- the Canadian Minister of National Defence;
- the Director of the Canadian Security Intelligence Service;
- the Chief of the Communications Security Establishment; or
- any other person responsible for a federal or provincial department or agency and prescribed by regulation.
Impact assessments
Responsible persons must conduct impact assessments to determine if their AI system is high-impact.
AI and Data Commissioner
The Artificial Intelligence and Data Act also establishes an AI and Data Commissioner under the Ministry. The Commissioner’s responsible for:
- monitoring compliance,
- ordering third-party audits of a given system, and
- sharing findings with other regulators.
Offences
If you breach sections 6 to 12 of the Act (e.g. don’t conduct an assessment or keep records), you could be fined $10 000 000 and 3% of your gross global revenue.
Alternatively, offences relating to personal data could have you fined $25 000 000 and 5% of your gross global revenue.
Actions you can take
We recognise the Act raises many questions.
But it also suggests something exciting—Canada’s taking a proactive approach to creating a future with AI we can trust.
How can you prepare for a future with regulated AI? First, we suggest you stay updated with the latest AI regulation news. Do so by subscribing to our newsletter. Otherwise, take a look at the law and reach out to us when you need help.