In a surprising turn of events, the Canadian Chamber of Commerce has expressed deep concerns about Canadian businesses being excluded from testifying on proposed federal artificial intelligence (AI) legislation. While the House of Commons industry committee did hear from Big Tech companies, Canadian businesses were not given the opportunity to appear in front of MPs to discuss the newer AI piece of Bill C-27. This has raised alarm bells for the Chamber of Commerce, which believes that the lack of consultation and input from Canadian businesses threatens the fairness and effectiveness of the legislation.
The innovation minister, François-Philippe Champagne, outlined significant amendments to the AI portion of the bill, known as the Artificial Intelligence and Data Act, in November. However, the Canadian Chamber of Commerce argues that without a wide range of witnesses testifying on these revisions, the bill could pass without proper consultation and informed debate. In a brief published on the committee site, the Chamber emphasized the importance of a robust public consultation and fair expectations for feedback, stressing that “businesses across Canada deserve” this opportunity.
The Chamber’s concerns stem from the fact that with the proposed changes, the bill has effectively become a fundamentally new piece of legislation. It underscores the lack of opportunity for Canadian companies, in particular small and medium enterprises (SMEs), to provide input on a law that directly impacts their operations. The committee responsible for studying the bill has now concluded its study and plans to start the process of amending the legislation in April, without any additional witnesses. This exclusion of Canadian businesses has intensified the Chamber’s worry, as they believe that SMEs, which are the backbone of the Canadian economy, should have had the chance to testify and voice their concerns.
Bill C-27 seeks to update Canada’s privacy laws and enact the country’s first federal legislation specifically addressing AI. If passed, the legislation would introduce new obligations for “high-impact” AI systems. Ulrike Bahr-Gedalia, senior director of digital economy, technology, and innovation at the Canadian Chamber of Commerce, emphasizes the pervasive nature of AI in business processes. She highlights that the majority of companies are using AI, making it crucial for them to have a say in the legislation’s development. Bahr-Gedalia particularly emphasizes the impact on smaller businesses, stressing that it would be exceedingly troublesome for them to comply with the law without having the opportunity to voice their concerns or potential challenges they foresee.
In response to the Chamber’s concerns, Audrey Champoux, a spokesperson for Champagne, stated that the government has consulted with a wide range of stakeholders, including academics, experts, civil society, and the business community, including the Chamber of Commerce itself. Champoux also highlighted that the committee has been diligently studying the bill since the fall of 2023, hearing from over 100 witnesses and receiving more than 70 written submissions. The government looks forward to continuing its work to finalize the legislation.
As the committee prepares to begin the process of amending the bill, the exclusion of Canadian businesses from testifying has raised significant questions about the fairness and involvement of those directly impacted by the legislation. The Canadian Chamber of Commerce’s concerns shed light on the need for thorough consultations and the inclusion of diverse perspectives to ensure effective and balanced regulation of AI in Canada.
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