Parliamentary review

Canada's AI and Data Act will regulate high-risk AI across the world's 10th-largest economy.

Canada's proposed Artificial Intelligence and Data Act (AIDA), part of Bill C-27, establishes a risk-based regulatory framework requiring impact assessments, transparency, and bias mitigation for high-risk AI applications. With the US-Canada trade relationship worth $900 billion annually, AIDA will affect every US company selling AI-powered products and services into Canada. AI Asset Assurance provides the independent evaluation and documentation AIDA's framework anticipates.

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REGULATION STATUS

LawAIDA (Bill C-27)

StatusUnder parliamentary review

ModelRisk-based framework

ScopeHigh-risk AI in Canada

AI Asset Assurance coverageFull evaluation ready

What's proposed

AIDA requirements — preparing for Canadian AI compliance

AIDA focuses on high-impact AI systems with requirements for assessment, mitigation, transparency, and ongoing monitoring. Companies already evaluating AI for US state laws or the EU AI Act will find significant overlap.

High-impact AI assessment

Operators of high-impact AI systems must assess and mitigate risks of harm or biased output. "High-impact" includes AI used in employment, financial services, healthcare, law enforcement, and essential services.

AI Asset Assurance: Independent evaluation assesses bias across all protected grounds under the Canadian Human Rights Act. Prescriptive remediation provides actionable steps to mitigate identified risks before deployment.

Transparency and explanation

Clear descriptions of how high-impact AI systems work, what data they use, and how decisions are made. Persons affected by AI decisions must be notified and provided with explanations.

AI Asset Assurance: Shapley attribution provides per-decision variable-level explanations. The evaluation documents the AI system's decision-making process in human-readable format suitable for both regulatory and consumer-facing transparency obligations.

Cross-border implications

US companies selling into Canada or processing Canadian user data with AI are within AIDA's scope. The US-Canada data relationship means most major US tech companies will need compliance.