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Forging a Middle Path: Canada’s Moment to Lead in AI Governance

Forging a Middle Path: Canada’s Moment to Lead in AI Governance

Dr. Jodie Lobana, AI Governance Expert

In 2017, Canada became the first country in the world to launch a national artificial intelligence (AI) strategy. At that time, the U.S. lacked meaningful AI legislation, and the European Union’s AI Act was still years from finalization. Unsurprisingly, Canada aligned more with Europe’s human-centred, precautionary stance. Today, with the AI landscape evolving rapidly, especially with the explosive advancement of generative AI technologies, Canada finds itself pulled between two global powers: the United States, favouring open innovation, and the European Union, doubling down on strict AI regulation. Canada does have a proposed Artificial Intelligence and Data Act (AIDA), introduced in 2022 as part of Bill C-27, which aims to regulate high-impact AI systems. However, AIDA is still under review and has yet to be finalized, leaving a critical gap in national legislation.

On April 28, 2025, Mark Carney won a historic federal election, becoming Canada’s Prime Minister at a defining moment for AI governance. Carney has long demonstrated a commitment to principled, forward-looking leadership—and it appears from his broader work that he would support an approach that balances innovation with strong ethical guardrails. Now, the question is not whether AI should be governed, but how Canada can lead responsibly and effectively.

—the question is not whether AI should be governed, but how Canada can lead responsibly and effectively—

A Made-in-Canada Path Forward

Canada now stands at a crossroads. Should it lean toward the U.S.—which, under President Trump, is doubling down on an innovation-first ethos, or deepen its commitment to the EU’s rights-based regulatory model? Increasingly, the answer is neither. Canada must chart its own course—a “middle path” balancing economic competitiveness with democratic values and social responsibility.

Ten priorities for Canada to secure global AI leadership:

  1. Build Sovereign Infrastructure: Data Centres: Investments in secure, energy-efficient, and distributed data centres will power future AI capabilities.
  2. Develop Canadian Large Language Models (LLMs): Canada must fund bilingual, culturally grounded LLMs, reflecting national values and supporting public and private sector needs.
  3. Create and Govern Data Trusts: Canada should support the creation and governance of data trusts—mechanisms for collective stewardship that protect individual rights while making data available for AI companies in a controlled, responsible manner.
  4. Embrace Principles-Based Regulation: Canada should implement agile, risk-based AI regulations that are grounded in high-level guiding principles and responsive to changing technologies, evolving societal considerations, and cultural norms.
  5. Launch a Nationwide AI Literacy Campaign: Canada should prioritize AI literacy nationwide, ensuring understanding AI is fundamental from classrooms to boardrooms.
  6. Invest in AI Safety Infrastructure: Canada needs a national oversight body to audit and test high-risk AI systems, dedicating at least 33.3% of AI investment to risk management, including 5% explicitly for existential risks. Similar to the Canadian Nuclear Safety Commission’s role in nuclear oversight, a national AI body should be set up to enforce critical safety standards.
  7. Coordinate National AI Policies Across Provinces: A unified pan-Canadian approach—working constructively with provinces, territories, and Indigenous governments—can reduce regulatory confusion, foster innovation, and create policy efficiencies.
  8. Experiment with AI-Human Collaboration in Policymaking: Canada can explore the use of AI to assist in policymaking—learning from global examples such as Dubai, where AI is being used to help draft and amend laws.
  9. Make Critical Thinking Core to Digital Citizenship: Beyond technical skills, Canadians must learn how to tell truth from misinformation, spot what’s real and fake, and think clearly about the ethical impacts of technology. These skills will help people make informed choices in an AI-rich world.
  10. Establish Centralized AI Governance and Risk Management Frameworks: Canada needs a National AI Governance Framework—one that ensures fairness, privacy, transparency, and security, while also integrating AI strategy, execution, risk management, and ethical deployment. AI governance is not just about setting rules; it is about aligning the development and application of AI with national priorities, economic opportunity, and public trust. Many of the principles outlined in my forthcoming book, Holistic Governance of Artificial Intelligence—including clarity of accountability, proactive risk mitigation, and ethical alignment—can inform this national effort. The book also introduces a fast-acting Hyper Cyber AI Risk Management Framework, adaptable for public sector use, to help Canada lead responsibly in the AI era.

International Collaboration and Economic Implications

Canada should actively leverage international partnerships, building consensus with the EU, UK, Nordic countries, Asia, and—especially given our deep economic and strategic ties—whenever possible, the U.S. Such collaboration is critical because shared global standards prevent regulatory fragmentation, facilitate smoother international cooperation and trade, and help address global-scale AI risks collectively. Additionally, the Canadian government must encourage the three major AI institutes—Vector, Amii, and Mila—to unite their efforts to prepare Canada for global AI leadership.

Effective policies will not only secure fairness and safety but will boost Canada’s global competitiveness, stimulate homegrown innovation, create quality employment, and attract global investment. Strategically balancing regulation with innovation will ensure Canada’s economy thrives in the AI era.

A Defining Moment for Canada

AI is not merely technological—it’s societal. Canada’s values uniquely position it for sustainable global AI leadership. Mark Carney’s election presents an unprecedented opportunity for coherence and courage in AI policy.

Now is the time for policymakers, businesses, academia, and civil society to unite and actively participate, ensuring Canada not only adopts but exemplifies responsible, inclusive, and impactful AI governance.

Canada must act not as a follower but as a bridge builder, offering a third model others may follow. With talent, values, and institutions in place, Canada must now show speed, vision, and commitment.

Let this be the moment Canada confidently steps into global AI leadership—not just for itself, but for the world.

Cite this article in APA as: Lobana, J. Forging a middle path: Canada’s moment to lead in AI governance. (2025, April 30). https://informationmatters.org/2025/05/forging-a-middle-path-canadas-moment-to-lead-in-ai-governance/

Author

  • Jodie Lobana

    Dr. Jodie Lobana is an award-winning expert in AI governance, board director, educator, and author. She advises corporate boards, executives, and governments on responsible AI adoption, risk oversight, and ethics. Through her consulting firm, she provides training and advisory services to corporations, financial institutions, and public bodies worldwide. Her upcoming book, Holistic Governance of Artificial Intelligence, introduces a transformative framework for AI governance. She has delivered sessions to professionals in 40+ countries, including engagements with UN Agencies, OPCW, OSFI, CPA Ontario, and the IIA Global Conference. Dr. Lobana helped develop and sign off on the 2024 Global Internal Audit Standards as a member of the International Internal Audit Standards Board. She currently teaches Technology Governance at York University and has previously taught AI Ethics at Queen’s University and MBA students at McMaster. Her board and committee roles include OECM, IIA Canada, CPA Canada, and UWCISA.

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Jodie Lobana

Dr. Jodie Lobana is an award-winning expert in AI governance, board director, educator, and author. She advises corporate boards, executives, and governments on responsible AI adoption, risk oversight, and ethics. Through her consulting firm, she provides training and advisory services to corporations, financial institutions, and public bodies worldwide. Her upcoming book, Holistic Governance of Artificial Intelligence, introduces a transformative framework for AI governance. She has delivered sessions to professionals in 40+ countries, including engagements with UN Agencies, OPCW, OSFI, CPA Ontario, and the IIA Global Conference. Dr. Lobana helped develop and sign off on the 2024 Global Internal Audit Standards as a member of the International Internal Audit Standards Board. She currently teaches Technology Governance at York University and has previously taught AI Ethics at Queen’s University and MBA students at McMaster. Her board and committee roles include OECM, IIA Canada, CPA Canada, and UWCISA.