![]() ![]() Ultimately, the question is not whether financial services will fall within AIDA’s ambit, but the extent to which the legislation, once passed, will impact financial services providers. The government’s amendments to the Bill could also be tabled in the coming weeks, shedding additional light on AIDA’s application to the financial services industry. The term “harm,” however, includes “economic loss to an individual,” which is relevant to financial services. ![]() For example, key terms, such as “biased output” and “material harm,” remain undefined. Since many details of the law are left to regulation, AIDA’s full impact on the financial services sector is unclear. ![]() The government also plans to add specific obligations for generative AI systems (e.g., ChatGPT), which could impact the use of AI for customer service. Indeed, Industry Minister Champagne had previously called out such systems, targeting them for AI regulation. Thus, we expect that AI systems used to determine whether to extend credit, provide insurance, or price financial products would be classified as high-impact systems. It is proposed that AI systems used to determine whether to extend services to an individual, assess service costs and types, and prioritize the provision of services be deemed high-impact systems. Note that the government intends to propose substantial amendments to AIDA (read about those changes in our previous bulletin on Bill C-27). Under the Bill, an AI system is “a technological system that, autonomously or partly autonomously, processes data related to human activities through the use of a genetic algorithm, a neural network, machine learning or another technique in order to generate content or make decisions, recommendations or predictions.” AIDA is notably intended to mitigate risk related to high-impact AI systems. The Artificial Intelligence and Data Act (AIDA), a component of Bill C-27, is Canada’s first comprehensive attempt at regulating AI. The Digital Charter Implementation Act, 2022 (Bill C-27) is currently under review in the House of Commons. Bill C-27: The Digital Charter Implementation Act, 2022 Artificial Intelligence and Data Act This bulletin provides a snapshot of Canadian AI regulation and initiatives relevant to the financial services sector. In addition, there are a number of financial services regulatory initiatives that will impact the use of AI, along with privacy and other laws of general application that apply to the use of AI. Artificial intelligence (AI) promises to dramatically transform the financial services sector, and is being increasingly used by financial services providers.Īlthough Canada currently has no AI-specific regulatory framework, federal legislation to regulate AI is presently before the House of Commons. ![]()
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