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Canada’s National AI Strategy: What It Signals for AI Regulation, Privacy and Online Safety

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Overview

Information Technology Bulletin

Overview

On June 4, 2026, the Government of Canada released Canada’s National Artificial Intelligence Strategy: AI for All, a five-year plan to accelerate AI adoption, strengthen domestic AI capacity and build public trust in AI systems. With the release of the AI for All strategy, the Government does not announce a new omnibus AI statute. Instead, it sets out a more targeted policy framework, informed by industry and stakeholder feedback, that organizes federal AI policy around six pillars:

  1. protecting Canadians and safeguarding democracy;
  2. empowering Canadians;
  3. powering AI adoption for shared prosperity;
  4. building the Canadian sovereign AI foundation;
  5. scaling Canadian AI champions; and
  6. building trusted partnerships and global alliances.

The AI for All strategy should be read as both an economic policy document and a regulatory signal. Its principal focus is growth: increasing AI adoption, improving productivity, modernizing public services, building sovereign compute capacity, supporting Canadian AI companies and positioning Canada competitively with international partners. At the same time, it treats trust, safety, democratic resilience, privacy and AI literacy as necessary conditions for that growth. The resulting policy direction is not protection from innovation, but protection in service of sustainable adoption and long-term competitiveness.

Key Signals from the Strategy

No near-term return to AIDA. The most important legislative signal is what the AI for All strategy does not include. For organizations watching for a revival of the Artificial Intelligence and Data Act (AIDA), or for a federal AI statute modelled on the European Union’s AI Act, the strategy is notable for its restraint. It suggests that the federal government may seek to address AI-related risks through targeted and more adaptable tools rather than through a single comprehensive statute that would need to apply across very different sectors, technologies and use cases. The likely result is an incremental framework built through privacy reform, online safety, consumer protection, standards, certification, procurement policy and sector-specific regulation.

Privacy modernization as AI trust infrastructure. Privacy is central to the AI for All strategy’s trust-based approach. Rather than treating privacy reform as a stand-alone legal exercise, the strategy presents modernized privacy laws as part of the infrastructure needed for responsible and trusted AI adoption. It links public trust to stronger control over personal information, safeguards for children’s data, transparency, protections against harmful practices such as deepfakes and surveillance pricing, and alignment with international privacy standards. This framing is consistent with Bill C-36, which seeks to enact the Protecting Privacy and Consumer Data Act (PPCDA) and replace Part 1 of the Personal Information Protection and Electronic Documents Act (PIPEDA) with a new federal private-sector privacy law. Notably, the PPCDA would advance privacy reform without a stand-alone AI statute, while remaining consent based and codifying many of PIPEDA’s principles and longstanding guidance from the Office of the Privacy Commissioner.

Online safety as AI risk management. Online safety is also part of the strategy’s approach to public trust. The AI for All strategy does not treat online harms as a separate policy issue from AI. It identifies safer online environments as one condition for broader AI adoption, particularly where AI systems may affect children, amplify harmful content or support automated interactions with users. It also connects trust in AI to platform accountability, stronger protections for vulnerable users and measures to address harmful content. To accomplish this, the Government has tabled Bill C-34, the Safe Social Media Act, which seeks to enact the proposed Digital Safety Act and Digital Safety Commission of Canada Act. Notably, Bill C-34 aims to regulate certain AI chatbot services (along with social media services) in a manner similar to what was contemplated under AIDA, without the need for a stand-alone AI statute, by imposing targeted obligations relating to harmful content, harmful chatbot behaviour, crisis intervention, user reporting, digital safety plans, record-keeping and regulatory oversight.

Adoption, sovereignty and Canadian AI companies. The remaining pillars move from trust and empowerment to deployment, infrastructure, scaling and international engagement. They focus on broader AI use in business and government, domestic compute and data infrastructure, research strength and AI talent, support for Canadian AI companies, and alignment with trusted partners on governance, security, standards and competitiveness. The AI for All strategy also treats AI literacy as a foundation for adoption, including through resources for schools, post-secondary institutions, workplaces and community organizations. For organizations, the practical takeaway is that AI adoption, procurement, vendor management and governance programs should be assessed not only for efficiency and innovation, but also for alignment with emerging expectations around sovereignty, data stewardship, transparency, security and trust.

Practical Takeaways for Organizations

Use the absence of AIDA to build practical, risk-based governance. The move away from AIDA-style legislation provides organizations greater flexibility to develop AI governance programs that are tailored to their actual use cases rather than designed around a single, broad legislative framework. This may be a constructive development for organizations seeking to innovate responsibly. As Bill C-36 and Bill C-34 illustrate, organizations should expect AI-related obligations to emerge through more targeted sources, including privacy reform, online safety legislation, sector-specific regulation, procurement requirements, standards and certification programs.

Build transparency and review into AI deployments. Organizations should be prepared to explain when AI is being used, what role it plays in decision-making, what information it relies on and how affected individuals can seek human review or escalation where appropriate.

Review procurement and vendor management. Organizations should assess whether AI vendors provide sufficient commitments on data use, training, model governance, auditability, security, explainability, cross-border processing, subcontracting, service continuity and compliance with emerging Canadian standards.

Conclusion

Canada’s AI for All strategy is not legislation and does not itself impose compliance obligations. It is nevertheless likely to shape the federal government’s near and mid-term approach to AI-related law, policy, funding, procurement and regulatory guidance. For organizations, the strategy is best understood as an early indication of where Canadian AI policy is headed: toward a framework that seeks to protect Canadians and build public trust while also treating innovation, investment and the growth of Canada’s AI ecosystem as critical policy objectives. Bill C-36 and Bill C-34 are early examples of that more targeted approach. Organizations should begin preparing AI governance programs that support responsible adoption without unnecessarily constraining innovation. 

Contact the Authors

For further detail, please contact any of the authors.

Contact the Authors

Authors

  • Ariel Laver, CPA, CA, Partner | Information Technology, Vancouver, BC, +1 604 631 3201, [email protected]
  • Keihgan Blackmore, Associate | Corporate/Commercial, Toronto, ON, +1 416 868 7870, [email protected]
Ariel Laver, Partner | Information Technology Ariel Laver, CPA, CA Partner | Information Technology Vancouver, BC +1 604 631 3201
Keihgan Blackmore Toronto Law Student Keihgan Blackmore Associate | Corporate/Commercial Toronto, ON +1 416 868 7870