Canada Aims for AI Policy Balance: Innovation vs. Regulation in Global AI Governance
December 20, 2025
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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Sources

CityNews Toronto • Dec 20, 2025
Carney has sketched the broad strokes of an AI policy, but details remain vague
CityNews Halifax • Dec 20, 2025
Carney has sketched the broad strokes of an AI policy, but details remain vague
CHAT News Today • Dec 20, 2025
Carney has sketched the broad strokes of an AI policy, but details remain vague
SaskToday.ca • Dec 20, 2025
Carney has sketched the broad strokes of an AI policy, but details remain vague