MPs to move on AI bill without testimony from Canadian companies: business group

Anja Karadeglija, The Canadian Press

The Canadian Chamber of Commerce says it is seriously concerned Canadian businesses weren’t able to testify on proposed federal artificial intelligence legislation.

While the House of Commons industry committee heard from Big Tech companies, the group says Canadian businesses weren’t given the opportunity to appear in front of MPs on the newer AI piece of Bill C-27.

In November, the innovation minister outlined numerous amendments the government plans to make to the AI portion of the bill, the Artificial Intelligence and Data Act.

"Without a plethora of witnesses testifying on the Minister's substantial revisions to the bill, we believe that AIDA stands to pass without proper consultation, informed discussion, or fair expectations for feedback," the group said in a brief published on the committee site Wednesday.

The chamber said that underscores "why we recommend the Committee to allow for a robust public consultation it desperately needs and which businesses across Canada deserve." 

Following Innovation Minister François-Philippe Champagne’s proposed amendments, the committee studying the bill only held five meetings, in which Canadian companies didn’t have a chance to appear, it said.

With the proposed changes, the bill has effectively become "a fundamentally new piece of legislation," the chamber argued.

It said it is "seriously concerned about the lack of Canadian companies having had the opportunity to testify, particularly (small and medium enterprises), the backbone of the Canadian economy."

The committee has now finished its study and will begin the process of amending the bill in April, without appearances from any more witnesses.

Bill C-27 would update Canada’s privacy laws and introduce Canada’s first federal legislation specifically aimed at artificial intelligence, which would introduce new obligations for "high-impact" systems. 

Ulrike Bahr-Gedalia, senior director of digital economy, technology and innovation at the Canadian Chamber of Commerce, said AI is now embedded in business processes.

"I would think the majority of companies are using AI in some kind of shape or form," she said in an interview.

Bahr-Gedalia said smaller businesses will have to comply with the law, and it would be "very troublesome" for them to have to do that without having a chance to voice potential challenges they foresee with the legislation.

Audrey Champoux, a spokesperson for Champagne, said that in recent months the government consulted with "academics, experts, civil society and the business community, including the Chamber of Commerce." 

She said in an emailed statement the committee has been studying the bill since the fall of 2023, "hearing from over 100 witnesses and receiving over 70 written submissions. We look forward to continuing our work to get this legislation across the finish line."

This report by The Canadian Press was first published March 7, 2024.

Survey finds 95% of Canadian business leaders worried about AI-related fraud

Daniel Johnson , BNN Bloomberg   Mar 7, 2024

The overwhelming majority of Canadian business leaders say they are concerned about the risks associated with AI-generated deepfake scams, according to a new survey. 

KMPG Canada surveyed 300 Canadian organizations that were victimized by fraud and found that 95 per cent of leaders surveyed said they are very concerned that deepfakes have increased risks associated with fraud at their organization. Another 91 per cent of respondents indicated they are worried that generative AI will provide criminals with increased abilities to engage in corporate misinformation and disinformation campaigns by leveraging deepfake technology. 

"Respondents overwhelmingly told us the fraud landscape is becoming more complex, with 95 per cent saying generative AI and social engineering scams make it easier for fraudsters to deceive, manipulate, misrepresent and conceal their crime. As fraudsters are becoming increasingly sophisticated in their attack methods, it's more and more challenging to deter criminals," Enzo Carlucci, national forensic leader at KPMG in Canada, said in a press release Thursday. 

The survey also found that 31 per cent of organizations that had experienced external fraud were targeted by misinformation or disinformation efforts, which included false or misleading information circulating on social media. 

“Organizations need to find new ways to strengthen their anti-fraud programs and stay one step ahead of scammers, or else they could be facing increased financial, legal, regulatory and reputational risks,” Carlucci said.

Just under half of respondents, 47 per cent, indicated their organization is actively leveraging new technologies – such as AI, automation or biometrics – to reduce the risk of fraud. 

The survey also found that fraud and crime-related occurrences cost nine in 10 Canadian companies up to five per cent of profits over the previous 12 months. 

"In the current economic environment, many companies are struggling to stay profitable, so any profits that are lost to fraud is too much," Carlucci said.