In 2022, Canada proposed the Artificial Intelligence and Data Act to attempt to regulate and promote the responsible use of artificial intelligence, though the framework is not yet law.
Canada has become a leader in developing and using artificial intelligence (AI). AI has become increasingly popular in different sectors, including the law. It has led the Canadian government to recognize the need for a regulatory framework to ensure the responsible use of AI technologies.
For these reasons, the federal government proposed the Artificial Intelligence and Data Act (AIDA) in 2022. AIDA aims to “set the foundation for the responsible design, development, and deployment of AI systems that impact the lives of Canadians.”
AIDA is part of Bill C-27, the Digital Charter Implementation Act, 2022. The Bill passed a second reading in the House of Commons and was referred to the Standing Committee on Industry and Technology in April 2023. It must pass a third reading in the House of Commons and three readings in the Senate before it becomes law.
Key Aspects of AIDA
AIDA and Bill C-27 represent Canada’s most significant attempt to regulate AI. AIDA focuses on “high impact” AI systems—those that have significant effects on individuals’ health, safety, and rights. The legislation aims to ensure that AI systems used in Canada are safe and non-discriminatory and that businesses are accountable for their AI-related activities.
The current draft of AIDA requires businesses to identify and reduce risks associated with AI systems, including harm and bias. It also mandates transparency in the use of AI systems and emphasizes the importance of human oversight in their operation. Regulations that provide more detailed guidance on compliance will supplement AIDA.
The Voluntary Code of Conduct for Generative AI (genAI)
The Canadian government has also introduced a Voluntary Code of Conduct. It aims to develop and manage advanced genAI systems responsibly. The Code serves as an interim measure to provide common standards for responsible AI use until formal regulation is in effect. Organizations that sign on must “commit to support the ongoing development of a robust, responsible AI ecosystem in Canada.”
Voluntary commitment aims to achieve the following outcomes:
- Human oversight and monitoring
- Transparency
- Fairness and equity
- Safety
- Accountability
- Validity and robustness
Perspectives on AI Regulation
The push for AI regulation in Canada has gathered diverse opinions. Advocates for more regulation argue that AI presents new risks that traditional laws may not address. They emphasize the need for specific rules to prevent harm, ensure fairness, and protect human rights. For example, the Canadian Labour Congress has expressed support for AIDA. They highlight the potential of AI to improve or worsen work, job quality, and economic insecurity.
Supporters also emphasize the rapid development of AI technologies. They argue that AIDA is necessary to regulate the industry and mitigate potential harm. Harms could include discrimination, misinformation, and impacts on the labour market and mental health. Proponents, including AI experts, believe that public protection is crucial as AI systems, particularly language-generating and text-to-image programs, are advancing at an unexpected pace.
On the other hand, some industry experts and legal scholars caution against overregulation. They fear it could stifle innovation and hinder AI’s economic potential. They advocate for a balanced approach, which would provide clear guidelines without imposing excessive burdens on businesses.
Critics also argue that AIDA, in its current form, is insufficient and fails to protect Canadians from the risks associated with AI advancements. They highlight the Bill’s industry-first approach. It prioritizes the commercial aspects of AI over the broader social impacts, including human rights, equality, equity, and privacy. Furthermore, they point out significant issues with the Bill’s drafting, such as the lack of clear definitions for key concepts. The narrow focus on commercial regulation also excludes the use of AI by government agencies, which could be problematic.
Impact on Legal Industry
AI regulation is set to impact the legal industry in Canada significantly. AI has the potential to enhance productivity, reduce costs, and improve client services. However, it also raises concerns about data privacy, security, and the traditional billing model based on hourly rates.
Law firms may need to adapt their methods and billing structures to align with the efficiency brought about by AI. Additionally, ethical considerations will become more critical as lawyers must ensure that AI tools comply with privacy regulations and do not compromise client confidentiality.
The regulation of AI could also lead to new advisory services within the legal profession. Firms must navigate the complexities of complying with AIDA and other related laws. Moreover, the legal industry will play a crucial role in interpreting and applying AI regulations, potentially leading to new legal practice areas.
Proactive Steps
The Voluntary Code of Conduct and the proposed Artificial Intelligence and Data Act represent Canada’s proactive steps towards establishing a regulatory environment for AI that balances innovation with responsibility. While opinions on the extent of regulation vary, there is a consensus on the need for a framework that addresses the unique challenges posed by AI.
The legal industry will need to stay on top of these developments, as the impact of AI regulation will be far-reaching. It will affect the delivery of legal services and the very nature of legal practice in the years to come. As Canada continues to refine its approach to AI regulation, the legal community must be prepared to adapt and contribute to shaping a future where AI is used ethically and effectively.
About Jagat Bath
