Canada’s AI Policy Hits the Ledger: Taxes, Trade, Competition

Canada’s federal AI policy is arriving through budgets, tax credits, competition law, and export rules, not only through a new act. Here is how AIDA, SR&ED, deceptive marketing rules, and trade controls will shape Canadian AI businesses in 2025 and beyond.

In Ottawa, the story of artificial intelligence policy is not only about safety frameworks and principles. It is also about accountants, customs declarations, ad claims, and market power. Canada’s federal AI regime is being sketched through a blend of a new law, proposed regulations, and a familiar set of economic instruments. If you build or deploy AI in Canada, the practical effects will be felt first in your tax files, your sales copy, your vendor contracts, and, in some cases, your export permits. Here is the who, what, when, where, why, and how. The federal government’s centrepiece law, the Artificial Intelligence and Data Act, commonly called AIDA and packaged within Bill C-27, is moving through Parliament. The government has also published a voluntary code of conduct for advanced AI systems and announced funding to support compute access and adoption in recent budgets. Around that core, older statutes are being applied to new models and tools. The Competition Act is tightening around deceptive uses and claims. The Export and Import Permits Act is shaping where cutting edge chips and certain software can travel. The tax code, especially the SR&ED programme, is deciding which