The inclusion of search and social media results as "high impact" systems will lead to new regulations and powers, including risk mitigation, record keeping, and public disclosures. Non-compliance could result in penalties of up to 3% of gross global revenues. The government is aiming to align its regulatory powers with those in the EU, but the specific obligations remain uncertain as the actual text of the amendments has not been released. The move has surprised many, as it equates AI search and discoverability with issues such as bias in hiring or uses by law enforcement, making Canada an outlier compared to the EU and the U.S. on this issue.
Key takeaways:
- The Canadian government plans to regulate the use of artificial intelligence (AI) in search results and content prioritization on search engines and social media services.
- The government intends to identify 'high impact' AI systems within Bill C-27, which includes AI use for hiring, biometric information, health care, administrative decisions, and law enforcement.
- By including search and social media results as 'high impact' systems, the bill establishes a range of regulations and new powers, including risk mitigation, record keeping, and public disclosures, with penalties for non-compliance as high as 3% of gross global revenues.
- While the government says it is aligning its rules more closely with the EU, the inclusion of content moderation and discoverability/prioritization makes Canada an outlier compared to both the EU and the U.S.