With AIDA dead, there is no in-force federal AI law in Canada — here is what actually governs business AI use in 2026.
dgm is an independent osFoundry integration partner — not affiliated with osFoundry’s maker (OS LLC), and dgm has no completed client integrations yet.
If you are wondering whether AI is regulated in Canada, the 2026 answer surprises many people: there is no in-force comprehensive federal AI law. Here is what actually governs business AI use.
| Item | Detail |
|---|---|
| Federal AI law | None in force — AIDA (Bill C-27) died on prorogation Jan 2025 |
| Privacy | PIPEDA (federal), Law 25 (Quebec), Alberta/BC PIPA |
| Quebec language | Bill 96 (French-by-default) |
| Voluntary | Federal voluntary code of conduct on generative AI |
No federal AI statute
The Artificial Intelligence and Data Act (AIDA), part of Bill C-27, died when Parliament was prorogued in January 2025 and has not been reintroduced. As of 2026 there is no in-force comprehensive federal AI law in Canada. The 2026 ‘AI for All’ national strategy is a policy framework, not binding AI regulation.
What does govern AI
Business AI use is governed by existing privacy law — PIPEDA federally, Quebec’s Law 25 (with its automated-decision and PIA rules), and Alberta/BC PIPA — plus Quebec’s Bill 96 French-language rules, a federal voluntary code on generative AI, and the Treasury Board Directive on Automated Decision-Making (which binds the federal government’s own use, not private business).
What this means for you
Design around privacy and, in Quebec, language law — not a non-existent AI statute. A self-hostable, auditable, region-controllable setup helps satisfy privacy and transfer duties. osFoundry’s managed cloud pins data to US, EU or Japan — it does not currently offer a Canadian managed region. For data that must stay in Canada, the honest path is self-hosting osFoundry (BYO Cloud) inside a Canadian cloud region such as AWS Canada (Montréal/Calgary), Azure (Toronto/Quebec City) or Google Cloud (Montréal), or running models locally on-device.
Where dgm fits
dgm is an independent integration partner that helps Canadian businesses adopt osFoundry — scoping a first use case, handling the build, and connecting AI to the systems you already run. dgm is independent of osFoundry’s maker (OS LLC) and has no completed client integrations yet, so everything described here is a service offered, not a past result. If you want to scope a practical first project, dgm can help you map it out.