The Current State of AI Regulation in Canada

The Current State of AI Regulation in Canada

Canada is actively shaping a national framework for AI, even as no standalone federal law is yet in force. The cornerstone of this effort is the proposed Artificial Intelligence and Data Act (AIDA), part of Bill C-27, which aims to govern high-impact AI systems through a risk-based, accountability-driven approach. While the bill lapsed after the 2025 election, its policy direction remains intact, with implementation expected 2+ years after Royal Assent—potentially by 2028.

Despite the absence of binding federal legislation, Canadian businesses must already comply with foundational privacy laws. PIPEDA applies to all private-sector organizations handling personal information—including AI systems that process voice data—and mandates consent, data minimization, accountability, and security safeguards. These obligations are especially critical for AI receptionists, where voice data is collected and processed.

Key regulatory expectations include: - Data protection through encryption and secure storage
- Transparency in AI interactions (e.g., informing users they’re speaking with an AI)
- Human oversight for high-impact decisions
- Accountability frameworks for developers and deployers
- Risk assessments proportional to system impact

As reported by Richards Buell Sutton LLP (RBS), AIDA will impose distinct obligations on both developers and users of high-impact AI systems, requiring formal risk management and documentation.

A notable example of sector-specific guidance is OSFI’s Guideline E-23, which requires federally regulated financial institutions to manage AI/ML systems under their model risk management framework. This signals that even without a broad AI law, regulatory scrutiny is already materializing in high-stakes sectors.

Currently, only 40 companies have signed the Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems as of March 2025, highlighting the limited reach of soft-law approaches. Yet, these frameworks underscore a growing expectation for ethical AI use—especially in customer-facing applications like voice assistants.

This evolving landscape means Canadian businesses must prepare proactively. Answrr’s current design—featuring end-to-end encrypted call handling, secure data storage, and compliance-ready architecture—aligns with both PIPEDA and the anticipated requirements of AIDA. These features position it as a responsible solution for SMBs navigating the path toward future regulatory compliance.

With regulatory momentum building, now is the time to embed privacy and transparency into AI systems—before the law catches up.

Key Regulatory Requirements for AI-Powered Voice Assistants

Key Regulatory Requirements for AI-Powered Voice Assistants

As Canada moves toward a formal AI regulatory framework, businesses deploying AI-powered voice assistants must prepare for evolving compliance demands. While no standalone federal AI law is currently in force, the proposed Artificial Intelligence and Data Act (AIDA)—part of Bill C-27—will soon establish binding obligations for high-impact systems. These include transparency, accountability, data protection, and human oversight, all critical for voice AI used in customer service, reception, and administrative roles.

Current enforcement rests primarily on PIPEDA, Canada’s cornerstone privacy law, which applies to all private-sector organizations handling personal information—including voice data processed by AI receptionists. Organizations must ensure consent, data minimization, and robust security safeguards when using voice AI, with non-compliance risking reputational damage and regulatory scrutiny.

• Transparency in AI Use: Users must be clearly informed when interacting with an AI assistant.
• Data Minimization: Only necessary voice data should be collected and retained.
• End-to-End Encryption: Voice calls and recordings must be protected in transit and at rest.
• Accountability Frameworks: Businesses must document risk assessments and decision-making processes.
• Human Oversight: Critical decisions—especially in employment or customer service—must allow for human review.

According to Canada’s official AI policy site, organizations using AI must ensure transparency about data use and maintain meaningful notice when AI is involved in decision-making. This aligns directly with PIPEDA’s principles and will be reinforced under AIDA.

AIDA will apply only to high-impact AI systems, including those used in employment, healthcare, law enforcement, and biometric processing—areas where voice assistants may play a role. The law’s risk-based model means compliance efforts must be proportional to potential harm, requiring systematic risk assessments and ongoing monitoring.

As reported by Richards Buell Sutton LLP (RBS), developers and deployers will face distinct obligations under AIDA, including documentation of system design, performance testing, and impact assessments. This signals a shift from reactive compliance to proactive governance.

Even without a final law, Canadian businesses must act now. With 60% of organizations already using or piloting AI tools (Deloitte, 2024, cited in Reddit discussions), early adoption of compliance-ready practices is no longer optional.

Answrr’s platform is built with encrypted call handling, secure data storage, and privacy-by-design architecture, directly addressing key regulatory expectations. These features help Canadian businesses meet PIPEDA’s security safeguards and prepare for future AIDA requirements—without costly overhauls.

For example, a mid-sized medical clinic in Toronto using Answrr’s AI receptionist can ensure voice data is never exposed during processing, and patients are notified in real time that they’re speaking with an AI. This level of transparency and control aligns with both current law and emerging standards.

With AIDA expected to take effect no earlier than 2027–2028, businesses have time—but not unlimited time—to align their AI practices with regulatory intent. The next step? Embedding compliance into product design from the start.

How Answrr Supports Responsible AI Compliance

How Answrr Supports Responsible AI Compliance

Canada is shaping a robust, risk-based AI regulatory framework—though no standalone federal law is in force yet. The proposed Artificial Intelligence and Data Act (AIDA), part of Bill C-27, sets the stage for future compliance, emphasizing transparency, accountability, and human oversight. Meanwhile, PIPEDA remains the cornerstone of data protection, applying directly to AI systems that process personal information—including voice assistants.

Answrr’s existing architecture is built on principles that align with both current and emerging Canadian expectations. With end-to-end encrypted call handling and secure data storage, the platform meets PIPEDA’s security safeguards. These features are not add-ons—they’re foundational, ensuring voice data is protected from unauthorized access.

• End-to-end encryption for all voice interactions
• Secure, compliant data storage with no third-party sharing
• Privacy-by-design embedded in platform development
• Audit-ready logging for compliance tracking
• No retention of raw voice data beyond necessity

According to Richards Buell Sutton LLP, AIDA will require developers and deployers to conduct risk assessments and maintain accountability frameworks—especially for high-impact systems. Answrr’s design already supports this, with built-in safeguards that reduce compliance burden for Canadian SMBs.

A Government of Canada report confirms that organizations using AI must ensure transparency—such as informing users when they’re interacting with an AI system. Answrr enables this through clear, automated disclosures during calls, helping businesses meet both PIPEDA and future AIDA requirements.

While only 40 companies have signed the Voluntary Code of Conduct on Responsible AI as of March 2025, Answrr’s proactive stance positions it as a leader in ethical deployment. The platform’s compliance-ready architecture allows businesses to prepare for AIDA’s eventual rollout—expected no earlier than 2027–2028—without disruptive overhauls.

As Canada moves toward binding AI regulation, Answrr isn’t just keeping pace—it’s helping Canadian businesses stay ahead. The next step? Embedding risk assessment tools and automated compliance checklists directly into the platform, ensuring readiness when AIDA takes effect.