AI regulation in Canada: laws & policy (2026)

Legal framework

Patchwork approach: federal Directive on Automated Decision-Making (Treasury Board, 2019); sectoral rules (OSFI Guideline E-23 for financial institutions, effective May 2027); the Voluntary Code of Conduct on Advanced Generative AI Systems (ISED, 2023); existing privacy laws (PIPEDA, Quebec Law 25); plus four AI-related bills tabled in 2026 by AI & Digital Innovation Minister Evan Solomon.

Key points: artificial intelligence in Canada

1. 01AIDA / Bill C-27 dead

   The Artificial Intelligence and Data Act, introduced in June 2022 as part of Bill C-27, died on the Order Paper when Parliament was prorogued in January 2025 ahead of the federal election; the government has said any future AI law will be a new design, not an AIDA revival.

   parl.ca srinstitute.utoronto.ca

2. 02Voluntary Code of Conduct on generative AI

   ISED launched a Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems in September 2023; it is entirely voluntary with no enforcement body, penalties, or audits, and serves as an interim standard.

   ised-isde.canada.ca

3. 03Federal government AI use — Directive on ADM

   The Treasury Board's Directive on Automated Decision-Making (in force since April 1, 2019, compliance from April 1, 2020) is a mandatory, risk-based instrument governing public-facing automated decisions by ~97 federal institutions, backed by the Algorithmic Impact Assessment tool.

   tbs-sct.canada.ca canada.ca

4. 04Financial-sector AI/model risk — OSFI E-23

   OSFI's final Guideline E-23 on Model Risk Management (issued 2025) applies to all federally regulated financial institutions and explicitly covers AI/ML models; it comes into force May 2027 after an 18-month transition and establishes a principles-based framework across the model lifecycle.

   osfi-bsif.gc.ca osfi-bsif.gc.ca

5. 05National AI Strategy 'AI for All' (June 2026)

   Prime Minister Mark Carney launched Canada's National Artificial Intelligence Strategy: AI for All on June 4, 2026, emphasizing trust, sovereign compute (a CAD $2B Sovereign AI Compute Strategy from Budget 2024), and international AI cooperation agreements with Germany, Norway and Finland.

   canada.ca ised-isde.canada.ca

6. 06New AI-related bills tabled in 2026

   AI Minister Evan Solomon has tabled a package of four bills in 2026, including an update to private-sector privacy law, legislation to regulate social media and AI chatbot companies, a ban on deepfakes in elections, and a criminal offence for non-consensual sexualized deepfakes; these are proposed and not yet in force.

   betakit.com thelogic.co

Timeline of decisions

1. 1 Mar 2026Guidance · official
   Government publishes summary of inputs for renewed national AI strategy

   ISED released 'Engagements on Canada's Next AI Strategy: Summary of Inputs,' synthesizing over 11,000 public submissions and 32 Task Force reports. The themes, risk-based regulation, sovereign infrastructure, talent, and liability, will shape the AI strategy expected to launch in 2026.

   Innovation, Science and Economic Development Canada

2. 23 Feb 2026Guidance · official
   Privacy regulators issue joint statement on AI-generated imagery

   Federal, provincial and territorial privacy authorities released a joint statement on AI-generated imagery (including deepfakes) and the protection of privacy, applying existing privacy law to synthetic media. Signals continued regulator-led governance of AI in the absence of a dedicated AI statute.

   Office of the Privacy Commissioner of Canada

3. 26 Sept 2025Guidance · official
   AI Strategy Task Force and public consultation launched

   Minister Evan Solomon launched a 30-day national public engagement (Oct 1-31, 2025) and a 28-member AI Strategy Task Force to shape Canada's renewed AI strategy. It marked a pivot from the failed AIDA toward a new, adoption-focused governance framework.

   Government of Canada

4. 6 Jan 2025Law · official
   Bill C-27 and AIDA die on prorogation of Parliament

   When Parliament was prorogued, Bill C-27, containing the Artificial Intelligence and Data Act (AIDA), Canada's would-be first comprehensive AI law, died on the Order Paper without passing. Canada was left with no dedicated federal AI statute.

   Parliament of Canada (LEGISinfo)

5. 7 Dec 2023Guidance · official
   Privacy regulators launch principles for generative AI

   Federal, provincial and territorial privacy commissioners issued joint principles for responsible, trustworthy and privacy-protective generative AI, mapping existing privacy law (legal authority, consent, transparency) onto AI development and use.

   Office of the Privacy Commissioner of Canada

6. 27 Sept 2023Guidance · official
   Voluntary Code of Conduct on advanced generative AI launched

   ISED Minister François-Philippe Champagne launched a voluntary code of conduct setting commitments on accountability, safety, fairness, transparency and human oversight for advanced generative AI. It was meant as an interim bridge until AIDA came into force.

   Government of Canada

7. 3 Feb 2021Enforcement · official
   Clearview AI found to conduct mass surveillance of Canadians

   A joint investigation by federal and three provincial privacy commissioners found Clearview AI's scraping of billions of facial images was unlawful mass surveillance violating Canadians' privacy. It became a landmark application of privacy law to AI systems.

   Office of the Privacy Commissioner of Canada

8. 1 Apr 2019Guidance · official
   Treasury Board Directive on Automated Decision-Making takes effect

   The federal government's first binding AI governance instrument required departments using automated decision systems to conduct Algorithmic Impact Assessments and meet transparency, accountability and fairness requirements. It remains Canada's main operative AI rulebook for government.

   Treasury Board of Canada Secretariat

9. 22 Mar 2017Guidance · official
   Pan-Canadian Artificial Intelligence Strategy launched

   Budget 2017 committed $125 million to the world's first national AI strategy, funding research institutes (Amii, Mila, Vector) and talent. It established Canada's research-and-talent-first posture that still frames its 'enable innovation' approach to regulation.

   Innovation, Science and Economic Development Canada

Sources

1. 1.parl.ca/legisinfo/en/bill/44-1/c-27
2. 2.ised-isde.canada.ca/site/innovation-better-canada/en/artificial-intelligence-and-data-act
3. 3.ised-isde.canada.ca/site/ised/en/voluntary-code-conduct-responsible-development-and-manag
4. 4.tbs-sct.canada.ca/pol/doc-eng.aspx?id=32592
5. 5.canada.ca/en/government/system/digital-government/digital-government-innovation
6. 6.osfi-bsif.gc.ca/en/guidance/guidance-library/guideline-e-23-model-risk-management-202
7. 7.osfi-bsif.gc.ca/en/news/backgrounder-guideline-e-23-model-risk-management
8. 8.ised-isde.canada.ca/site/ised/en/canadian-sovereign-ai-compute-strategy
9. 9.canada.ca/en/innovation-science-economic-development/news/2026/06/minister-solo
10. 10.srinstitute.utoronto.ca/news/whats-next-for-aida
11. 11.betakit.com/evan-solomon-teases-new-ai-laws-as-experts-warn-canada-is-behind-inte
12. 12.thelogic.co/news/evan-solomon-privacy-laws-address-ai-trust/