Canada’s ambitious plan to regulate artificial intelligence (AI) through the Artificial Intelligence and Data Act (AIDA) has come to an unexpected halt. AIDA, which was introduced as part of Bill C-27 in 2022, officially died in 2025 in committee due to prolonged inaction, effectively terminating the entire bill.

Bill C-27 aimed to introduce significant privacy reforms while simultaneously establishing a regulatory framework for AI development and use in Canada. The failure to advance the legislation leaves the country without a dedicated AI regulation, raising questions about the future of AI governance in Canada.

The dissolution of Bill C-27 leaves Canada without a specific regulatory framework for AI. This absence comes at a critical moment as AI technologies increasingly influence industries ranging from healthcare to transportation. Key issues like liability for AI-generated harms, data protection in AI training, and ethical guidelines for AI deployment remain unresolved at the federal level.

Despite this legislative setback, Canada remains committed to advancing discussions on AI. Earlier efforts, such as the Voluntary Code of Conduct for Advanced Generative Artificial Intelligence Systems introduced in September 2023, demonstrate the government’s interest in fostering responsible AI development. However, voluntary measures lack the enforceability of formal laws, leaving significant gaps in oversight.

The failure of Bill C-27 does not mark the end of Canada’s pursuit of AI regulation. The concepts introduced in AIDA could reemerge in future legislative efforts under a new government or Parliament session. A revised bill might address the shortcomings of AIDA, offering clearer provisions and a more targeted scope. The Canadian government also has the option to explore other mechanisms, such as expanding existing data protection laws or collaborating with provincial governments to fill regulatory gaps in the interim.

As the global race to regulate AI intensifies, Canada’s stalled progress raises concerns about its ability to keep pace with other jurisdictions like the European Union, which has moved forward with comprehensive AI legislation under the EU AI Act. For now, Canadian businesses and AI developers face an uncertain regulatory landscape, with many turning to voluntary guidelines and industry best practices for direction.

Need Help?

If you’re concerned or have questions about how to navigate Canada’s, or any country’s, AI regulatory landscape, don’t hesitate to reach out to BABL AI. Their Audit Experts can offer valuable insight and ensure you’re informed and compliant.