We continue to consider Canada's Bill C-27. In a previous article, we talked about the Consumer Privacy Protection Act (CPPA).
We will now look at the Artificial Intelligence and Data Act and the Personal Information and Data Protection Tribunal Act.
New rules are expected to be included in the planned Artificial Intelligence and Data Act to strengthen the government's permission to create and use AI systems. By establishing uniform standards that apply across Canada for the design, development and use of these systems, it seeks to control international and interprovincial trade and commerce in artificial intelligence systems. In addition, it prohibits any action involving AI systems that could seriously harm people or their interests.
A key requirement of the AI and Data Act is that all personal information used to train AI programs must be encrypted and permanently de-identified before it can be used to draw any conclusions about its owners. Although the word "high-impact systems" is not defined in the proposed legislation, it is also intended to eliminate potential bias in the analysis (this is left to regulation).
Below is a list of some of the key components of the AI and Data Act:
1. Identifying, assessing, and mitigating risks of harm and bias in high-impact AI systems during development and deployment to protect Canadians.
2. Appointment of an AI and Data Commissioner to assist the Minister of Innovation, Science and Industry in carrying out his or her ministerial duties under the Act, such as overseeing corporate compliance, commissioning external audits, and, where necessary, sharing data with other regulators and executors.
3. Establishing clear legal restrictions and sanctions on the use of data obtained illegally for the development of artificial intelligence, if the artificial intelligence is used carelessly and causes significant harm, or when there is a fraudulent intent to cause significant harm to the economy.
4. Creation of an artificial intelligence mechanism, a ministry with a data commissioner in the state to help with enforcement. If there is a "serious risk of imminent harm", the Minister can give the Commissioner access to information and the power to issue orders, including those requiring organizations to carry out audits, fix problems and stop the operation of specific high-impact systems.
The AI Act provides penalties for non-compliance with the Act, as well as administrative financial penalties for violations of the rules.
The Consumer Privacy Protection Act will be partially enforced by the Personal Information and Data Protection Tribunal, which will be established under Bill C-27. The Tribunal will separately consider proposals by the Canadian Privacy Commissioner to impose administrative penalties for specific breaches of the Act. "An available mechanism for organizations and individuals to seek a review of the Privacy Commissioner's decisions" is what it means.
It should be emphasized that the current PIPED Act already establishes a tribunal to oversee personal information on the Internet. However, the new law will increase the powers of the tribunal to the level of a higher tribunal. Any decision made by the Personal Data Tribunal may be converted into an order of the Federal Court or other higher court and shall have the same legal effect as a court order.
If the investigation finds it necessary, it can also penalize the company, but only after allowing both the organization and the Office of the Privacy Commissioner to respond.
If passed, Bill C-27 would introduce long-overdue changes to Canadian privacy laws. Recognizing that data is the source of competitiveness and innovation, this new law tries to strike a balance between people's rights to their personal information. The implementation of the law is one of many important reforms planned. Businesses in Canada and, increasingly, around the world must be prepared for these legal changes.
This is just the beginning of what we can expect in terms of future technologies, such as artificial intelligence, used to regulate data. By preparing early, businesses can benefit from more streamlined, compliant, and reliable processes under the new law.
If you have questions about the legal aspects of AI regulation, please contact Avitar.
Subscribe to our channels on social networks:
Contact us:
business@avitar.legal
Serhii Floreskul
,
Violetta Loseva
,
