Status: AIDA withdrawn (January 2025)

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

Canada's Artificial Intelligence and Data Act (AIDA), part of Bill C-27, died on the order paper in January 2025 when Parliament was prorogued. The current federal government is pursuing AI regulation through privacy legislation rather than AI-specific law. Provincial legislation (e.g. Ontario Bill 194) continues to advance. With the US-Canada trade relationship worth $900 billion annually, companies deploying AI into Canada should prepare for evolving requirements. AVAAS provides the independent evaluation that emerging Canadian frameworks will require.

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REGULATION STATUS
LawAIDA (Bill C-27) — withdrawn Jan 2025
StatusUnder parliamentary review
ModelRisk-based framework
ScopeHigh-risk AI in Canada
AVAAS coverageFull evaluation ready
What was proposed (now withdrawn)

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.

AVAAS: 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.

AVAAS: causal 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.

AVAAS: Multi-jurisdiction evaluation covers AIDA alongside US state laws and EU AI Act. One engagement, comprehensive North American + European compliance documentation.

$900 billion in US-Canada trade. AI compliance is part of it.

If you sell AI-powered products into Canada, AIDA compliance is coming. One AVAAS evaluation covers North American and European requirements.

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