AI Regulation in Ontario’s Public Sector: What's Here and What's Ahead

Generative AI technologies are developing quickly as more people are using them and as more organizations are adopting them.

Lawmakers and regulators are working to catch up, and important developments are brewing.

In Canada, the Federal Artificial Intelligence and Data Act is making its way through the House of Commons. In the meantime, 23 major Canadian companies have signed on to the Federal Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems.

However, these Federal laws will not apply to Ontario’s public sector.

Ontario’s Beta Principles for the Ethical Use of AI Establish Key Guardrails for the Public Sector

Ontario is in the process of developing a Trustworthy Artificial Intelligence Framework that will govern AI adoption, usage and risk management by public sector entities.

That Framework does not yet include new "black-letter" law. Instead, for the time being, Ontario has released a set of Principles for Ethical Use of AI [Beta] that establish guardrails for public sector AI usage and that will likely inform future regulation. Developed by the Ontario Government in collaboration with at AI Expert Working Group, these Principles are modelled on laws in jurisdictions such as New Zealand, the United States, and the European Union, and are consistent with the research of the Organization for Economic Cooperation and Development (the OECD).   

Six Principles for Public Sector AI

Ontario’s six Beta Principles for Ethical Use of AI are as follows:

1. Transparent and explainable: AI systems must be understandable and their decisions open for review and discussion.

2. Good and fair: AI systems must respect the rule of law and human rights, civil liberties and democratic values, all as broadly defined.

3. Safe: Every AI application must function securely and safely, with risks continuously assessed and mitigated.

4. Accountable and responsible: Clear lines of responsibility must be maintained within organizations, ensuring that decisions made by or with AI are justifiable and equitable.

5. Human centric: AI should be developed with a focus on public benefit, involving input from those who use and are impacted by these systems.

6. Sensible and appropriate: Consideration must be given to the sector-specific and the broader societal impact of AI technologies.

What Remains Ahead

These six Principles are a starting point. There’s more to come.

The Government of Ontario has stated that future steps will aim to bring the Principles “to life”. What that looks like remains to be seen, but may include significant measures such as:

• New laws and legislated rules on AI use.

• New regulators overseeing AI usage in the public sector.

• New powers and expanded mandates for existing regulators such as the Office of the Information and Privacy Commissioner of Ontario.

Whatever the path for regulation will be, early adopters of Ontario’s Principles will likely be in the best position to adapt quickly, successfully, and with minimal interruption to their operations.   

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