AI regulation: How Canada compares to efforts in Europe

On October 17 Enzai hosted a fireside chat in downtown Toronto, bringing together a panel of AI governance thought leaders and dozens of Canada’s leading AI experts to discuss the differences in approach to AI regulation between Europe and Canada.

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In addition to Enzai Founder Ryan Donnelly, the panel was made up of David Asgeirsson, R&D Partnerships and Intellectual Property at Xanadu, and Sam Ip, Partner at Osler, Hoskin & Harcourt LLP.

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Deepdive on the Emerging AI Regulatory Environment

Ryan kicked off the discussion with an overview of the current AI governance space. He spoke about how this is an increasingly complex area for businesses to get right as more legislation comes online, and how domain-specific tools, such as Enzai’s platform, can aid companies in ensuring that their AI usage is compliant with emerging regulation.

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The panel continued on this theme with a conversation around the debate on whether the need for regulation in the fast-moving AI space outweighs the potential risk of hampering innovation. The panel was in agreement that regulation is necessary to ensure sufficient AI governance, but also agreed that legislation on AI must be highly-considered and aware of the need to future-proof regulations against fast-evolving frontier AI. This means writing rules which are general enough to capture advances in technology and use-cases, while also being specific enough to have real impact. 

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A case in point is the upcoming EU AI Act, which had already been announced in draft form before the explosive debut of Chat GPT last November and the subsequent rise of LLMs. This led to a deep conversation around the progress of the Act, which is currently in the trilogue stage. This is a period of debate and discussion between the European Parliament, the Council and the Commission, with the aim of agreeing on a final version of the Act which will enter into force. This process is slated for finalisation before the end of 2023.

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On the same theme of emerging regulation, David stressed the importance of certainty for business. As more and more legislation comes online - not just the EU Act, but Canadian statutes and a possible US Executive Action - businesses will face increased uncertainty and potential costs for ensuring compliance. David was clear that companies will need specialist help to ensure they remain in compliance with multiplying laws.

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The panel then moved onto a discussion of the Canadian AI regulatory environment. Sam took the audience through Canada’s actions, in particular the Artificial Intelligence and Data Act (AIDA), which seeks to balance the protection of individuals and communities with the need to ensure the ability of Canadian firms to innovate with and adopt the latest AI.

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Much like the proposed EU AI Act, Canada’s AIDA takes a risk-based approach to the regulation of AI. The focus of the Act is on mitigating the risks of harm and bias from ‘high impact’ AI systems. The key factors the legislation uses to determine which AI falls into this category include the severity of potential harms, the scale of use, and the degree to which risks are regulated under other laws. 

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Sam also discussed Canada’s voluntary Code of Conduct for the Responsible Development and Management of Advanced Generative AI Systems, which he had a hand in developing. 

Though the Code is technically voluntary for business, it is increasingly required by the Federal Government and thus becoming effectively mandatory.

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The final topic in the discussion revolved around the need for regulators to work with industry participants in order to craft successful legislation. Ryan noted that since AI is such a fast-moving industry, it’s even more crucial than in other areas for regulators and legislators to maintain a dialogue with the AI community. In the case of Canada, Sam highlighted that there has indeed been a high level of collaboration, especially on the Code of Conduct, which was designed in consultation with a working group of industry leaders.

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Enzai would like to thank David and Sam for their participation, as well as MaRS Discovery District, Innovate UK and Invest Northern Ireland for their help with organising this fantastic event. If you are interested in how Enzai can help you and your business navigate the emerging AI regulatory landscape, please get in touch or to learn more, read about Enzai's solutions for AI Governance, Model Risk Management, AI Regulations, Generative AI and the EU AI Act.

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