Madam Speaker, I rise today to speak about Bill C-27. I will focus on the artificial intelligence and data act, but before that, I would like to briefly talk about the overall digital charter implementation act.

Canadians have never been more reliant on the digital economy, yet the current privacy law was last updated over 20 years ago, before iPhones or Facebook even existed. In the new digital economy, enhanced privacy would not only benefit consumers but allow companies to innovate, compete and thrive. We are now at a juncture where, over the next few years, the rules of the road for digital privacy and AI are being written and entrenched. That is why it is crucial to have clear rules when it comes to this sector. For Canadians to prosper and benefit from the digital economy, they need to have confidence that their data is safe and trust that their privacy is being respected.

That is why the government has introduced this legislation, which would ensure that Canada has critical protections in place. Bill C-27 would ensure that Canadians have first-class privacy and data protection and that companies that break the rules face severe consequences, some of the steepest fines in the world. It would also hold organizations to a higher standard, in particular when it comes to protecting the personal information of minors by giving them and their parents more power over their information, including the ability to have it deleted. With Bill C-27, we are moving beyond traditional privacy protection to ensuring data control for all Canadians. Canadians can be reassured that we will never compromise on the trust and safety of their privacy.

Over the last decade, artificial intelligence technologies have been expanding rapidly and have been benefiting Canadians in a variety of ways. These technologies are evolving rapidly and with that, there is an increase in risk and harms due to the use of AI systems, whether intentional or unintentional. The artificial intelligence and data act, or AIDA, would establish rules to promote the responsible use of AI and the related governance practices. The framework would ensure that the development of AI systems has to include plans to mitigate bias and harm and that organizations are accountable for their practices.

The AIDA seeks to regulate international and interprovincial trade and commerce in artificial intelligence systems by requiring that certain persons adopt measures to mitigate risks of harm and biased output related to high-impact artificial intelligence systems. The act would provide for public reporting and would authorize the minister to order the production of records related to artificial intelligence systems. The act would also establish prohibitions related to the possession or use of illegally obtained personal information for the purpose of designing, developing, using or making available for use an artificial intelligence system in an intentional or reckless way that causes material harm to individuals. This would ensure that Canadians have strong privacy protections and clear rules of the road for business, as well as guardrails to govern the responsible use of artificial intelligence.

This bill would provide Canada with adequacy within the European Union's GDPR framework and international interoperability on privacy. Further, it would enable Canada to remain on the cutting edge of artificial intelligence development. This bill would help us to build a Canada where citizens have confidence that their data is safe and their privacy is respected, while unlocking innovation that promotes a strong economy.

The University of Toronto’s Schwartz Reisman Institute for Technology and Society studied this bill, and I would like to quote from an article written by policy researcher Maggie Arai:

As technology continues to advance and permeate almost all aspects of modern life, it has become necessary for regulators to grapple with how to best regulate it. New ways of collecting and processing personal information necessitate new regulations to protect those whose information is being collected, analyzed, and sold—often whenever they visit a new website or sign up to a new app like Facebook or TikTok. Advances in artificial intelligence (AI) are also top of mind for many regulators, posing unique risks and challenges that must be addressed. The recently tabled Bill C-27 represents Canadian regulators’ efforts on both fronts.

She goes on to say:

The Artificial Intelligence and Data Act (AIDA) is the federal government’s first attempt to comprehensively regulate artificial intelligence. Canada is not alone in this: AIDA comes in the wake of similar initial attempts at AI regulation by other governments around the world, such as the European Union’s 2021 AI Act and the United States’ 2022 Algorithmic Accountability Act. AIDA, like the EU’s AI Act, takes a risk-based approach to regulating AI. However, it is worth noting that Canada proposes categorizing AI based on whether it is “high-impact,” while the EU uses the language of “high-risk.” AIDA is also far less prescriptive than the EU AI Act. The draft Act is quite short, with much room left for the enactment of provincial AI laws as well as further federal regulation....

She continues:

A person becomes a “person responsible” for an AI system if they design, develop, make available for use, or manage the operation of an AI system in the course of international or interprovincial trade and commerce.

The major requirements contained in AIDA for “persons responsible” for AI systems include ensuring the anonymization of data, conducting assessments to determine whether an AI system is “high-impact,” establishing measures related to risks, monitoring and keeping records on risk mitigation, and requirements for organizations to publish a plain-language description of all high-impact AI systems on a public website. If at any time the Minister has reasonable grounds to believe that a person may be in contravention of these requirements, the Minister may order that person to conduct an audit into the possible contravention, or engage an independent auditor to conduct the audit.

She goes on to say:

The tabling of Bill C-27 represents an exciting step forward for Canada as it attempts to forge a path towards regulating AI that will promote innovation of this advanced technology, while simultaneously offering consumers assurance and protection from the unique risks this new technology...poses.

She also states:

There are also sections of C-27 that could be improved, including areas where policymakers could benefit from the insights of researchers with domain expertise in areas such as data privacy, trusted computing, platform governance, and the social impacts of new technologies.

She goes on to say:

To ensure that the powerful new technologies that shape our world today benefit everyone, it’s essential that our policies are well-informed—especially when it comes to how technical systems work, how they interact with our legal infrastructure, and how they impact society. As we approach the implementation of this landmark regulation, it’s critical that Canadians are engaged and informed on these topics and ready to make their voices heard.

I will now quote from an article written by the law firm of McCarthy Tetrault, which states:

Bill C-27, if adopted into law, is set to have a significant impact on businesses by creating new requirements for those who make, use, or work with AI. The bill imposes several new obligations on the AI sector which are backed by serious penalties for non-compliance.