The policy crossroads
Canada’s Artificial Intelligence and Data Act (AIDA) — expected to take effect in 2026 — positions the country as one of the first G7 economies with a full AI governance regime. Yet compliance uncertainty is already affecting innovation velocity.
| Metric | 2023 | 2025 (est.) | 2026 (proj.) | Source |
|---|---|---|---|---|
| AI start-ups funded (annual) | 280 | 210 | — | NRC / CVCA |
| Avg. regulatory-readiness score (1–5 scale) | — | 2.8 | 4.1 | ISED Pilot Study |
| Public trust in AI (%) | 44 | 46 | 48 | Arcus |
Emerging dynamics
- Mandatory risk classification and audit frameworks will raise costs short-term but enhance market credibility.
- Data-governance interoperability with EU and U.S. rules will determine export potential for AI products.
- Canada’s “safe but slow” reputation could either attract ethical-AI investment or deter fast movers.
What leaders can do
- Build compliance into design. Align R&D, privacy, and legal early.
- Appoint a Chief AI Governance Officer. Treat as fiduciary role.
- Use explainable AI frameworks. Transparency drives adoption.
- Engage with regulators proactively. Pilot sandbox programs to shape standards.
Arcus Insight: Trust will be the currency of the AI economy. Canada’s regulatory credibility can become a global export — if execution keeps pace with ambition.