Canada Aims for AI Policy Balance: Innovation vs. Regulation in Global AI Governance

December 20, 2025
Canada Aims for AI Policy Balance: Innovation vs. Regulation in Global AI Governance
  • Experts describe a shift toward sovereign AI and national infrastructure, framing Canada as a potential global player in AI governance while debating funding levels and the scope of AI-focused investment.

  • Regulatory thinking is influenced by U.S. political dynamics and a pivot toward AI-driven economic growth and infrastructure, rather than aggressive regulation.

  • Industry voices warn the current AI strategy task force may be weighted too heavily toward industry perspectives, which could shape policy outcomes.

  • Figures such as Paul Samson and Mark Daley portray appointing an AI minister as a clear signal that AI is a priority and a form of nation-building infrastructure for the 21st century.

  • Canada’s AI policy is aimed at a “sweet spot” between over-regulation and innovation, with Evan Solomon signaling a cautious regulatory posture and plans to reintroduce a privacy framework around AI without simply copying the full C-27 bill.

  • Observers describe the strategy as balancing commercial use with human-centric, democratic values, seeking a practical middle ground between regulation and innovation.

  • Canada signed memorandums of understanding on AI with Germany, the United Kingdom, and the European Union at the G7, signaling international coordination while pursuing a deregulatory stance.

  • Solomon’s government pursued international AI collaboration through MOUs with Germany, the UK, and the EU, maintaining a plan for a privacy-focused bill and avoiding a broad rehash of Bill C-27.

  • Canada’s AI strategy centers on attracting investment and staying globally competitive, with anticipated evolution after Solomon’s updated national AI strategy is released next year.

  • These MOUs with Germany, the UK, and the EU reflect closer alignment with Europe on AI governance while Canada maintains its distinctive approach.

Summary based on 9 sources


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