Canada is implementing a multi-faceted regulatory approach to address the societal and industrial impacts of Artificial Intelligence, moving away from a single, comprehensive federal AI statute. This strategic shift follows the demise of the Artificial Intelligence and Data Act (AIDA), which was part of Bill C-27 and died in January 2025 when Parliament was prorogued, as reported by legal firms like Aird & Berlis LLP and AI regulation trackers such as Regulations.ai and Resemble AI [S1, S3, S7]. Instead, the nation is now pursuing a broader range of policy and regulatory tools to manage the rapidly evolving AI landscape [S1].
Canada's National AI Strategy: "AI for All"
Central to Canada's updated approach is "Canada's National Artificial Intelligence Strategy: AI for All," launched on June 4, 2026, by Prime Minister Mark Carney [S8]. This five-year plan aims to solidify Canada's position as a global leader in the responsible development and adoption of AI, a detail reported by Aird & Berlis LLP [S1]. The strategy signals a clear departure from the pursuit of a single, comprehensive AI statute like AIDA, opting instead for an integrated framework that leverages various legislative and policy instruments [S1]. The "AI for All" Strategy also includes significant funding, with a proposed $500 million Canadian Tech Growth Fund and an additional $700 million in affordable sovereign compute for Canadian SMEs through an expansion of the Compute Access Fund [S1, S8]. The government also commits to building a world-leading public supercomputer by 2031 [S1].
Modernizing Privacy and Online Safety Legislation
In parallel with the national strategy, the Canadian government is advancing new legislative measures to address specific AI-related challenges. Bill C-36, tabled on June 15, 2026, proposes to modernize consumer privacy legislation [S8]. This bill aims to strengthen individual control over personal data, protect children's information, and address harmful practices such as deepfakes and surveillance pricing [S8]. It mandates organizations to disclose information about automated systems and their decision-making criteria, and to provide individuals with a mechanism to challenge decisions made by these systems, according to the Government of Canada and Regulations.AI [S8, S3]. As of October 2026, Bill C-36 has completed its first reading, and its full impact will depend on its progression through Parliament and its final form.
Concurrently, the "Safe Social Media Act" (Bill C-34) was introduced on June 10, 2026, to hold online services accountable for addressing harmful content and fostering a safer online environment, particularly for children [S8]. This legislation also extends its regulatory scope to certain AI chatbot services, imposing obligations related to harmful content, harmful chatbot behavior, crisis intervention, user reporting mechanisms, and the implementation of digital safety plans [S8].
Further addressing specific harms, the Protecting Victims Act, introduced in December 2025, directly targets the proliferation of non-consensual sexual deepfakes [S8]. This act proposes to prohibit the distribution of such deepfakes, increase penalties for distributing intimate images without consent, and outlaw threats to distribute these images, as noted by the Prime Minister's Office [S8].
Broader Regulatory Frameworks and Institutional Support
Beyond new legislation, Canada has implemented a Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems, announced in September 2023 [S3]. This code provides temporary standards for Canadian companies developing and using generative AI systems, serving as an interim measure until formal regulation is in effect, as reported by Innovation, Science and Economic Development Canada and Regulations.ai [S8, S3].
The federal government also regulates its own use of AI through the Treasury Board's Directive on Automated Decision-Making, last amended on June 24, 2025 [S3]. This directive mandates an Algorithmic Impact Assessment and impact-level controls for public sector AI applications [S3]. To further bolster AI safety and understanding, the Canadian Artificial Intelligence Safety Institute (CAISI) was launched in late 2024 within Innovation, Science and Economic Development Canada (ISED) [S3]. CAISI's mandate includes advancing the scientific understanding of advanced AI risks, developing evaluation toolkits, and collaborating with international safety institutes [S3].
Provincial Initiatives and Future Considerations
While federal efforts are underway, provinces are also developing their own AI-related legislation. Quebec's Law 25, in force since September 22, 2023, requires notice of decisions based exclusively on automated processing, an explanation upon request, and a mechanism for human review of such decisions [S3]. Ontario's Bill 194, the Enhancing Digital Security and Trust Act, 2024, enables the province to require prescribed public sector entities to publish information about their AI use, develop accountability frameworks, implement risk management measures, avoid prohibited uses, and ensure human oversight in specific cases [S3]. However, the duties outlined in Ontario's Bill 194 will only become legally binding once specific regulations are prescribed, and as of October 2026, the existing regulations are not AI-specific [S3].
Looking ahead, while the "AI for All" strategy does not indicate an immediate return to a standalone AI statute, the government intends to build on its framework through an open and transparent regulatory development process. This leaves open the possibility of future comprehensive legislation. Government projections forecast that AI adoption could contribute to the creation of up to 250,000 new jobs by 2031 and up to 90,000 AI-related job opportunities for young Canadians. The "AI for All" Strategy aims for an additional $200 billion of economic growth and an increase in Canadian business AI adoption from 12% to 60% by 2034. Furthermore, partnerships are being finalized with a forecast to provide 850 MW of compute capacity by 2030, with a potential to scale up to 2.3 GW, involving investments in the tens of billions. The Office of the Superintendent of Financial Institutions (OSFI) Guideline E-23, Model Risk Management, is also set to take effect on May 1, 2027, applying to federally regulated financial institutions. These economic and infrastructure projections, along with the future of a general AI statute and the full impact of Bill C-36 and Ontario's Bill 194 regulations, remain forecasts or unconfirmed details as of October 2026.