Canada’s AI Governance at a Crossroads: Balancing Innovation and Oversight

Maybe Gavin Belson was onto something. AI is ripe for more tethics.

The Balance Between Innovation & Responsible AI

In 2017, Canada became the first country to implement a national artificial intelligence (AI) strategy, committing $125 million to support AI research and innovation. Since then, Canada has ranked among the top countries for AI research output — and for good reason.

The potential benefits of AI are astounding. But so too are the risks, ranging from mass job displacement to unprecedented cybersecurity breaches.

The global AI sector has attracted over $3 billion in investments to date and employs more than 50,000 people. Its contribution to the global economy is projected to reach $15.7 trillion by 2030, and Canada aims to play a pivotal role in the sector's responsible development.

However, AI governance in Canada still faces gaps, particularly in the areas of ethics and public benefit.

Led by Dr. Blair Attard-Frost, researchers at the University of Toronto and McGill University reviewed 84 AI governance initiatives from 2017 to 2022. They found that only a fraction of AI initiatives focused on ethics, societal benefits, and workforce development.

Considering AI's powerhouse potential — with economic and existential implications — the study highlights a widening gap between our understanding of benefits and tradeoffs.

Core Findings on AI Governance Suggest Guardrails are Needed

The team's findings suggest Canada should strengthen its governance approach to balance innovation with ethical responsibility.

Strong Industry & Innovation Focus

• The majority of AI governance initiatives focused on supporting innovation, research, and technology deployment.

• Investments and policies primarily target economic growth and leadership in AI development.

Limited Ethics & Social Initiatives

• Less emphasis was placed on developing ethics guidelines and standards.

• Few initiatives focus on workforce development and social services, leading to gaps in responsible AI implementation.

Policy Implications

• Research & Public Engagement: The researchers suggest that more empirical research and public participation is required to improve the sector's public transparency and trust.

• Unified National Strategy: The study recommends that the country take a more cohesive approach to integrating global stakeholders (government, industry, academia, and civil society) to better serve the needs of the greater public.

The research reveals a need for balance, including clear ethical guidelines and public engagement to determine AI's impact and its potential tradeoffs.

Why It Matters: People Come First

Like any healthy feedback loop, checks and balances are needed to maintain momentum while preventing AI misuse and maintaining public trust.

From shifting job market dynamics to warfare implications, the signs of AI's impact are clear on the horizon:

• Workforce Shifts: McKinsey projected that AI could force 375 million workers to switch occupations by 2030, a global displacement of 400-800 million jobs.

• Deepfake Fraud Surge: In 2022, deepfake fraud incidents increased by 1,740% in North America and 1,530% in the Asia-Pacific region.

• Warfare Concerns: The Council of Europe's Framework Convention on AI, signed by multiple countries including Canada, aims to ensure AI aligns with human rights and democratic values, addressing risks like autonomous weapons.

• AI Influence: Google holds 89% of the global search engine market, Apple holds 51% of the U.S. mobile phone and tablet market, and Microsoft powers 62% of desktop operating systems. These concentrations have raised concerns about influence over AI technologies.

Although gaps exist, legal frameworks are emerging. For instance, in 2022, Canada's Artificial Intelligence and Data Act (AIDA) became the country's first legal framework to address adverse impacts and systemic bias within corporate AI systems. 

Global Perspectives: Taming the AI Behemoth?

The research team also recommends a global approach to governance, as policy variations can lead to inconsistencies. However, building an integrated international approach will be challenging.

Countries like the U.S. and those in the European Union (EU) have taken disparate approaches to tech governance and regulation. While the EU emphasizes stringent data privacy and ethical guidelines, the US often takes a more decentralized approach that is deeply integrated with the private sector.

Other areas may be easier to coalesce.

Canada's focus on developing industry and innovation has aligned with global trends. Countries like China and South Korea, for instance, both emphasize AI's role in boosting technological competitiveness and economic growth.

If ethical initiatives are ramped up, the question remains: how might they be enforced? The UK and Germany, for instance, are proponents of ethical standards but often struggle to successfully implement them across environments.

"By taking this opportunity to strengthen public participation in AI governance, Canada could fill this international gap and position itself as the global leader in participatory AI governance."

Future in Focus: Global Frameworks on the Horizon

Divergent strategies between nations are all the more reason for ongoing public discourse. As the AI sector expands and evolves, coordinated governance frameworks are expected to be critical for fully harnessing benefits while mitigating risks.

Of course, more guardrails mean increasing the likelihood of censorship. Such issues will need to be addressed transparently.

While Canada's AI governance approach has made it a global leader, the above research highlights the need for a greater balance, with clear ethical guidelines and further empirical studies of AI's social implications.

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