Canada’s AI Policy Shifts to Copyright and Contracts

Canadian federal AI policy is moving beyond ethics into the mechanics of copyright, contracts, and tax credits. Here is how copyright rules, private indemnities, and SR&ED reforms are shaping AI regulations in Canada, and what developers and publishers should watch next.

Canada’s federal AI policy conversation is widening. While Parliament continues to debate the Artificial Intelligence and Data Act, the centre of gravity this season is shifting to the economic plumbing that will decide who gets paid, who carries risk, and where the next wave of AI projects is built. Copyright rules for training data, contract clauses in private deals, and tax treatment for compute are becoming the real levers of Canadian AI regulations. What is happening: Ottawa’s proposed AI law remains a framework in progress, still moving through the legislative process as of late 2024. At the same time, Canadian Heritage has been consulting on generative AI and copyright, and industry lawyers are baking new warranties and indemnities into commercial contracts. Why it matters: these choices set cashflows and liabilities long before fines or audits arrive. Where it lands will affect publishers, startups, and every Canadian business that relies on AI tools at work. Copyright and text mining move to the front Canada does not have a standalone text and data mining exception in its Copyright Act. Companies building or deploying models have mostly relied on licences or on fair dealin