Canada Artificial Intelligence Act-
In June 2022, the government of Canada tabled the Artificial Intelligence and Data Act (AIDA) as part of the C-27, the Digital Charter Implementation Act.
Part 3 of the C-27 Bill governs the regulations surrounding Artificial Intelligence in Canada. This union represents Canada’s first step to towards a new regulatory system which has been designed to positively drive AI innovation.
The AIDA act establishes a risk-based approach to govern the evolving international norms within Artificial Intelligence. This is intended to align with foreign legislation such as the EU AI Act.
The C-27 Bill is yet to be enacted and is currently with The Standing Committee on Industry and Technology pending review.
Definitions
Part 3, 2, provides definitions for key terms mentioned throughout the act. The Key definition to note is “Artificial Intelligence System”. This is defined as a technological system that, autonomously or partly autonomously, processes data related to human activities through the use of a genetic algorithm, a neural network, machine learning or another technique in order to generate content or make decisions, recommendations or predictions.
Part 1 of AIDA governs the regulations of AI in the private sector.
High Impact systems
Requirements for high impact systems:
Section 7, requires that those responsible for an Artificial Intelligence system must assess whether it is High – Risk.
If a system is identified as High – Risk, those responsible must then establish measures to identify, assess and mitigate the risks which may result. This is outlined in Section 8.
Section 11 outlines the regulations regarding making a system available for use. This section states a publicly available website must be published which, in plain language, provides a description of the system which explains the following items:
- (a) how the system is intended to be used;
- (b) the types of content that it is intended to generate and the decisions, recommendations or predictions that it is intended to make;
- (c) the mitigation measures established under section 8 in respect of it; and
- (d) any other information that may be prescribed by regulation.
If a system is likely to result in serious material harm, those responsible must notify the Minister, as per Article 12.
Ministerial Orders
The minister may order an audit which requires the person to:
- (a) conduct an audit with respect to the possible contravention; or
- (b) engage the services of an independent auditor to conduct the audit.
This may be conducted if the Minister has reasonable grounds to believe they those responsible have contravened any of the regulations relating to High Risk systems.
The Minister may require the person to implement any measures identified in the Audit report under Section 16.
Section 18 (1) outlines that the Minister may cease to make the AI system available for use if they have reasonable grounds to believe that the use of the system gives rise to serious harm.
Administrative Monetary Penalties
Under Section 29 (1) anyone found to be in violation of the regulations provided may be liable for an administrative monetary penalty.
The Governor in council may then make regulations which respect an administrative monetary penalty scheme. These regulations are outlined in Section 29 (4).
Offences
Section 30 states that a person who commits an offence under any of the following subsections, will be liable for conviction:
1. Any person who contravenes any of sections relating to High Risk AI systems is guilty of an offence
2. Any person who carries out a regulated activity is guilty of an offence if the person obstructs — or provides false or misleading information to — the Minister, anyone acting on behalf of the Minister or an independent auditor in the exercise of their powers or performance of their duties or functions under this Part.
Punishments-
(i) to a fine of not more than the greater of $10,000,000 and 3% of the person’s gross global revenues in its financial year before the one in which the person is sentenced, in the case of a person who is not an individual, and
(ii) to a fine at the discretion of the court, in the case of an individual; or
(i) to a fine of not more than the greater of $5,000,000 and 2% of the person’s gross global revenues in its financial year before the one in which the person is sentenced, in the case of a person who is not an individual, and
(ii) to a fine of not more than $50,000, in the case of an individual.
Those who establish that they exercised due diligence will not be found guilty under Section 30, subsection 4.
Administration
The Governor in Council may designate any member of the Queens Privy Council for Canada to be the Minister.
The Governor in Council may make the following regulations under Section 36.
- (a) respecting what constitutes or does not constitute justification for the purpose of the definition biased output in subsection 5(1);
- (b) establishing criteria for the purpose of the definition high-impact system in subsection 5(1);
- (c) respecting the establishment of measures for the purposes of sections 6, 8 and 9;
- (d) respecting the assessment for the purposes of section 7;
- (e) respecting what constitutes or does not constitute material harm for the purpose of section 12;
- (f) prescribing qualifications for the purposes of subsection 15(2); and
- (g) prescribing persons and entities for the purpose of paragraph 26(1)(f).
The Minister may make any of the following regulations under Section 37.· (a) respecting the records required to be kept under section 10;
· (b) prescribing, for the purposes of subsections 11(1) and (2), the time and the manner in which descriptions are to be published and the information to be included in the descriptions;
· (c) respecting the notice required to be provided under section 12; and
· (d) respecting the publication of information under section 18.
The provisions of this act come into force on a day to be fixed by order of the Governor in Council.