Proposed AI law risks “chilling” innovation, out of step with global standards, Big Tech tells MPs

Representatives from major tech companies warned that the government bill aimed at regulating AI is too broad and risks hindering its development and use in Canada. Executives from Amazon.com, Inc.’s Web Services, Alphabet Inc.’s Google, Meta Platforms Inc., and Microsoft Corp. testified before the House industry committee on Wednesday as it continues its review of Bill C-27, the Digital Charter Implementation Act. Industry witnesses criticized the bill’s Artificial Intelligence and Data Act (AIDA) for its vague explanation of high-risk AI systems, saying its current scope would rope in systems that pose little to no risk and be an unnecessary burden on those who use them. “Not all risk is created equal,” said Amanda Craig, Microsoft’s senior director of public policy. The rules and requirements to be applied to high-impact AI systems should be more focused on the technology’s specific use cases rather than the technology itself, she explained. Amazon’s director of global AI and Canada public policy Nicole Foster agreed, noting that the bill considers the use of AI by police services as high-impact, even when an officer uses autocorrect to fill out a traffic ticket. The panelists recommended the government take the time to align its approach with emerging global standards and, in the meantime, amend existing legislation to address specific risks that AI poses. “It's very, very difficult to try to capture all of these very specific use cases in one piece of legislation,” said Craig. Critical of the bill for being out of step with international standards emerging from some of Canada’s largest trading partners – including the United States, the European Union, the United Kingdom, and Japan – the companies said AIDA would set a standard that does not exist anywhere else. “Going further than the EU does not mean that Canadians will be better protected from the risks of AI,” said Craig, “it means that businesses in Canada that are already using lower-risk AI systems could face a more onerous regime than anywhere in the world.” The four companies explained that although they might have the resources to comply with the regime AIDA would impose, smaller companies developing or using AI might not. Craig also pointed to AIDA’s criminal penalties, including a fine of up to five per cent of a company’s annual gross global revenues, saying they are “unlike any other jurisdiction” in the Organization for Economic Co-operation and Development. Rachel Curran, Meta’s head of Canadian public policy, also took issue with the bill’s remote access provisions, expressing privacy concerns around allowing the new AI commissioner to remotely access companies’ data. She was also critical of some of Industry Minister François-Philippe Champagne’s proposed amendments to the bill, asking the government to remove content moderation and prioritization systems from the list of high-impact systems. The tech giants proposed giving existing regulators, who are better equipped to understand the complexities and risks of their industries, more authority over the uses of AI in their respective sectors. Health Canada could be directed to regulate AI in the healthcare industry, or the Office of the Superintendent of Financial Institutions could regulate its use in the finance sector, Foster explained. Issues of non-consensual deepfakes “can be dealt with very easily” through an amendment to the Criminal Code; or a “quick amendment” to the Elections Act could address AI’s potential for election disinformation, stated Curran. The tech giants recognized the need to move quickly toward regulating AI, but encouraged the government to move deliberately, consulting with other industry sectors on the various impacts AI can have along the way. – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca.

Proposed AI law risks “chilling” innovation, out of step with global standards, Big Tech tells MPs

News | February 9, 2024

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Proposed AI law risks “chilling” innovation, out of step with global standards, Big Tech tells MPs

News | February 9, 2024

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