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.
Request evaluationAIDA 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.
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.
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.
$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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