Future of Canadian privacy and AI landscape in absence of Bill C-27
The recent prorogation of Parliament effectively ended the progress of Bill C-27 which included new AI regulations and privacy reforms. This development leaves no new federal privacy or AI legislation anticipated for the foreseeable future. However, the landscape of privacy and AI standards is continuously evolving, presenting new challenges for Canadian organizations to navigate without the guidance of Bill C-27.
It is imperative for Canadian organizations to stay vigilant and keep abreast of the rapidly changing privacy and AI environment. While federal legislation may be stalled, recent provincial reforms in Québec and other regions will likely impact organizations as these changes set new industry standards. Moreover, regulatory actions and guidance point towards specific areas of priority such as AI, biometrics, deceptive design practices, and the safeguarding of children’s and health information, which are expected to face increased scrutiny.
In addition to provincial laws, international standards also play a significant role in influencing practices and risks within the Canadian market. Québec’s Act respecting the protection of personal information in the private sector (Law 25) stands out as one of the most stringent privacy laws in Canada, imposing penalties of up to $10 million or 4% of an organization’s global revenue. The broad reach of Law 25 highlights the importance of compliance even for organizations outside Québec. Many entities have chosen to adopt Québec’s standards across the board, whether or not they are directly subject to the law, to maintain a uniform approach and foster strong business relationships.
Ontario has shown a willingness to address privacy and AI concerns independently through recent legislation. While the possibility of provincial intervention was previously hinted at, there have been no recent public statements on the matter. Alberta, on the other hand, has taken proactive steps by enacting reforms to its public sector privacy laws, reinforcing privacy protections and increasing penalties for non-compliance. The support these reforms have received suggests a potential appetite for similar changes in the private sector.
Regulatory actions and guidance further shape the privacy and AI landscape, with specific focus on generative AI, children’s privacy, biometrics, deceptive design practices, health information protection, and employee surveillance. These areas are set to face heightened regulatory scrutiny, posing elevated risks of litigation and reputational damage for non-compliant organizations. The Competition Bureau, human rights watchdogs, financial regulatory bodies, and other entities are also closely monitoring the impact of AI on various sectors, signaling a collective effort towards comprehensive AI regulation.
In light of these developments, Canadian regulators stress the importance of collaboration across sectors to effectively navigate the complex challenges posed by AI regulation. As the privacy and AI landscape continues to evolve without the framework of Bill C-27, organizations must remain vigilant, adapt to changing standards, and prioritize compliance to mitigate risks in this dynamic environment.
