Data Protection & Privacy

AI & Data Protection in Canada: How Bill C-27 and Global Trends Are Reshaping Data Protection

  • avtarBarrister & Solicitor Muddasir Zaib

  •  May 26, 2025

  • 6 mins read

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  • As artificial intelligence (AI) continues to revolutionize industries, it simultaneously raises urgent questions about how personal data is collected, used, and protected. In Canada, the legislative response to these questions is emerging through Bill C-27, a comprehensive reform package aimed at updating federal privacy laws and introducing Canada's first regulatory framework for AI.
  • This article explores the key elements of Bill C-27, its impact on businesses of all sizes, and how Canadian companies can align themselves with global privacy trends while managing the legal and operational risks associated with AI with guidance from a qualified business lawyer.

  • Understanding Bill C-27: A New Era in Privacy and AI Regulation

  • Introduced in June 2022, Bill C-27 seeks to modernize Canada's outdated privacy laws through three key components:
  • The Consumer Privacy Protection Act (CPPA): Replacing PIPEDA, this act grants individuals stronger rights over their personal data and imposes stricter obligations on businesses, including enhanced consent requirements and the right to data deletion.
  • The Personal Information and Data Protection Tribunal Act: Establishes a specialized tribunal to hear appeals and impose penalties for non-compliance.
  • The Artificial Intelligence and Data Act (AIDA): A novel legal framework that regulates "high-impact" AI systems to ensure their design, development, and deployment are done responsibly.
  • For any business affected by these reforms, seeking advice from a business lawyer is essential to ensure compliance and minimize risk.

  • What Businesses Need to Know

  • Businesses operating in AI, SaaS, fintech, healthtech, e-commerce, and other data-intensive sectors will face new compliance demands under Bill C-27. Here are several key areas of impact:
  • Data Governance: Organizations will need to implement robust internal privacy frameworks, documenting how personal data is collected, processed, and shared.
  • Algorithmic Accountability: If your business uses predictive models or recommendation engines, AIDA may require you to conduct risk assessments, ensure explainability, and maintain oversight procedures.
  • Consumer Rights: CPPA strengthens consumer control through rights to access, deletion, and correction of data. Companies must build systems that support these rights or face significant fines.
  • Penalties: The legislation includes some of the stiffest penalties in Canadian privacy law history up to 5% of global revenue or $25 million for the most serious breaches.
  • A skilled business lawyer can help identify which of these obligations apply to your operations and how to implement the necessary changes efficiently.

  • Comparing Global Trends: EU, U.S., and Beyond

  • Canada is not alone in rethinking how AI and privacy intersect:
  • The EU's Artificial Intelligence Act categorizes AI systems by risk and imposes transparency and data governance obligations on high-risk systems.
  • The U.S. is considering the American Privacy Rights Act (APRA), which also includes AI-specific disclosure obligations and consumer rights.
  • In Asia, jurisdictions like Singapore and South Korea are adopting similar AI transparency and personal data protections.
  • Businesses eyeing international growth must anticipate these frameworks and align their internal policies accordingly. A business lawyer with international compliance knowledge can provide guidance tailored to these evolving standards.

  • Practical Steps for Businesses to Stay Ahead

  • To prepare for Bill C-27 and similar global legislation, businesses should consider the following steps:
  • Conduct a Data Audit: Identify what personal data you collect, where it is stored, and how it flows through your systems.
  • Implement a Privacy Management Program: Designate a privacy officer, create policies, and train employees.
  • Build AI Governance Tools: Ensure AI systems are explainable, fair, and monitored regularly.
  • Review Consent Mechanisms: Make sure users are giving meaningful, informed consent.
  • Engage a Business Lawyer: Work with a professional who can help you interpret obligations and structure compliance programs.

  • Why Legal Guidance Matters

  • At Muddasir Law Professional Corporation, we understand that navigating evolving privacy and AI regulations can be overwhelming for any business. Whether you're launching a new venture or expanding across borders, our legal team helps you:
  • Evaluate your privacy and AI exposure
  • Draft compliant policies and terms
  • Incorporate federally or in Ontario with documents and internal policies that reflect your data privacy and AI compliance obligations
  • Respond to consumer rights requests and regulatory inquiries
  • By working with an experienced business lawyer, you ensure that your organization is protected, proactive, and positioned for sustainable growth.
  • We don't just provide legal advice, we provide business-focused legal solutions.

  • Final Thoughts

  • If you're seeking advice from a qualified business lawyer, visit our dedicated page for business legal services: Business Lawyer – Muddasir Law.
  • AI is here to stay, but its use must be ethical, transparent, and privacy-conscious. Bill C-27 marks a significant shift in how Canada approaches both personal data and intelligent technologies. Businesses that prepare today—guided by a knowledgeable business lawyer, will not only reduce their legal risks but also build customer trust and long-term business value.
  • This article is for informational purposes only and does not constitute legal advice.