{"id":54449,"date":"2026-08-28T09:17:04","date_gmt":"2026-08-28T13:17:04","guid":{"rendered":"https:\/\/www.millerthomson.com\/?p=54449"},"modified":"2026-08-28T10:08:40","modified_gmt":"2026-08-28T14:08:40","slug":"canadas-ai-transparency-consultation-what-businesses-need-to-know-before-september-23","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/technology-ip-and-privacy\/canadas-ai-transparency-consultation-what-businesses-need-to-know-before-september-23\/","title":{"rendered":"Canada’s AI transparency consultation: What businesses need to know before September 23"},"content":{"rendered":"\n

Organizations that develop, procure, deploy or rely on AI in Canada have until September 23, 2026 to help shape the federal government’s approach to AI transparency, before it is shaped for them. Innovation, Science and Economic Development Canada (“ISED<\/strong>“) ‘s public consultation on Enhancing Trust in Artificial Intelligence Through Increased Transparency<\/a> covers five areas that could lead to new disclosure obligations, incident reporting requirements, and tracking mechanisms for AI agents. It follows Canada’s National Artificial Intelligence Strategy<\/a>, AI for All, released in June 2026, that we covered in this article<\/a>, and the consultation outcomes could inform future legislation, regulation, or mandatory standards.<\/p>\n\n\n\n

Why AI transparency, and why now?<\/h2>\n\n\n\n

AI is increasingly embedded in the products, services, and business processes Canadians use every day. According to Statistics Canada\u2019s analysis<\/a>, 19.2% of Canadian businesses reported using AI to produce goods or deliver services during the 12 months preceding the second quarter of 2026, compared with 12.2% one year earlier.<\/p>\n\n\n\n

As adoption increases, so too do questions about whether individuals know when AI is being used, whether AI-generated content can be identified, what information should be available about AI systems, and who should be accountable when something goes wrong.<\/p>\n\n\n\n

The government\u2019s position is that transparency can help address some of these concerns by supporting informed decision-making, accountability and public confidence. As Evan Solomon, the Minister of Artificial Intelligence and Digital Innovation, stated when announcing the consultation<\/a>: “AI adoption moves at the speed of trust.”<\/p>\n\n\n\n

This consultation is therefore significant not only for AI developers. The questions being considered may ultimately affect a much broader range of organizations that purchase, integrate, and use AI technologies in their operations.<\/p>\n\n\n\n

Five areas under consideration<\/h2>\n\n\n\n

The government’s discussion paper identifies five areas in which additional transparency measures may be appropriate.<\/p>\n\n\n\n

1. Identifying AI-generated content<\/h3>\n\n\n\n

As generative AI makes it increasingly difficult to distinguish between human-created and AI-generated text, images, audio, and video, the Government is considering how Canadians can reliably identify content that has been generated or manipulated using AI.<\/p>\n\n\n\n

Possible approaches include visible disclosures, invisible watermarks and provenance metadata. The consultation asks both when identification is most important and which technical or disclosure mechanisms would be most effective.<\/p>\n\n\n\n

2. Knowing when you are interacting with AI<\/h3>\n\n\n\n

Canadians increasingly interact directly with AI systems, including through chatbots and other automated services. The government is considering whether, and in what circumstances, individuals should be expressly informed that they are interacting with AI rather than a human.<\/p>\n\n\n\n

Importantly, the discussion paper asks whether existing market practices and legal frameworks are sufficient or whether additional measures, such as regulation, guidance, codes of conduct, technical standards, or procurement requirements, are warranted.<\/p>\n\n\n\n

3. Information about AI systems<\/h3>\n\n\n\n

Transparency may require more than simply disclosing that AI is being used. Businesses and individuals may also need information about an AI system’s capabilities, limitations, appropriate uses and, in some circumstances, how it was developed.<\/p>\n\n\n\n

The consultation therefore considers whether more consistent and understandable information should be made available about AI systems. For organizations purchasing or deploying third-party AI products, greater transparency could assist with due diligence, risk assessment, and responsible implementation. For developers and vendors, however, new disclosure expectations could create additional governance and compliance obligations.<\/p>\n\n\n\n

4. Tracking serious AI incidents<\/h3>\n\n\n\n

The government is also considering how serious incidents involving AI systems should be identified, documented and tracked.<\/p>\n\n\n\n

Incident reporting can help regulators, businesses, and researchers identify recurring risks and emerging problems. At the same time, any reporting framework raises practical questions about what constitutes a sufficiently serious “incident,” who should be responsible for reporting it, what information should be disclosed, the appropriate recipients of that disclosure.<\/p>\n\n\n\n

5. Tracking AI agents<\/h3>\n\n\n\n

Finally, the consultation addresses the rapidly developing field of AI agents, meaning AI systems capable of taking actions and completing tasks with increasing degrees of autonomy.<\/p>\n\n\n\n

As AI systems move from generating information to taking actions on behalf of users and organizations, maintaining reliable records of what an AI agent did, when it acted, and under whose authority may become increasingly important. The government is considering whether additional mechanisms are needed to track the activities and interactions of these autonomous AI systems.<\/p>\n\n\n\n

What could come next?<\/h2>\n\n\n\n

The consultation does not predetermine whether Canada will adopt new legislation or other mandatory requirements. Indeed, one of the questions the government is expressly asking is where existing market practices and legal frameworks are already sufficient and where genuine gaps remain.<\/p>\n\n\n\n

The range of potential responses is broad. Depending on the feedback received, future measures could include legislation or regulation, government guidance, voluntary codes of conduct, technical standards, research and development initiatives, AI literacy programs, or government procurement requirements.<\/p>\n\n\n\n

An opportunity to shape Canada’s approach<\/h2>\n\n\n\n

For businesses developing or using AI, the consultation provides an opportunity to engage with the government before its approach to AI transparency is settled.<\/p>\n\n\n\n

ISED is accepting feedback through an anonymous online survey or by written submission until September 23, 2026. Submissions will inform the government’s next steps, and ISED has indicated that it will publish a “What We Heard” report following the consultation.[1]<\/a><\/p>\n\n\n\n

Organizations with an interest in Canada’s developing AI regulatory landscape should review the discussion paper and consider making a submission. With the government expressly seeking input on both whether further intervention is needed and what form it should take, this is a meaningful opportunity for businesses and other stakeholders to help shape Canada’s approach to AI transparency before the next steps are determined.<\/p>\n\n\n\n

How Miller Thomson can help<\/h2>\n\n\n\n

The consultation closes September 23, 2026, and the positions taken now will shape Canada’s AI transparency framework for years. Whether you are preparing a written submission, assessing how proposed transparency measures could affect your AI products or operations, or building internal governance to get ahead of potential requirements, Miller Thomson’s AI and Innovation lawyers<\/a> can help.<\/p>\n\n\n\n

Our team advises AI developers, deployers, and enterprise users on regulatory strategy, responsible AI governance, disclosure frameworks, and public policy engagement. If you are considering a submission or want to understand what these proposals could mean for your business, contact our group.<\/p>\n\n\n\n

\n\n\n\n

[1]<\/a> See ISED, \u201cHave your say on advancing AI transparency in Canada\u201d, July 23, 2026, retrieved from Have your say on advancing AI transparency in Canada<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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