Introduction
Artificial intelligence (AI) promises to dramatically transform the financial services sector, and is being increasingly used by financial services providers.
Although Canada currently has no AI-specific regulatory framework, federal legislation to regulate AI is presently before the House of Commons. In addition, there are a number of financial services regulatory initiatives that will impact the use of AI, along with privacy and other laws of general application that apply to the use of AI. This bulletin provides a snapshot of Canadian AI regulation and initiatives relevant to the financial services sector.
Bill C-27: The Digital Charter Implementation Act, 2022
Artificial Intelligence and Data Act
The Digital Charter Implementation Act, 2022 (Bill C-27) is currently under review in the House of Commons. The Artificial Intelligence and Data Act (AIDA), a component of Bill C-27, is Canada’s first comprehensive attempt at regulating AI. Under the Bill, an AI system is “a technological system that, autonomously or partly autonomously, processes data related to human activities through the use of a genetic algorithm, a neural network, machine learning or…
