Monday, 11 December 2023 06:58

Data Governance for AI under Canada's Proposed AI and Data Act (AIDA Amendments Part IV)

Written by  Teresa Scassa
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The federal government’s proposed Artificial Intelligence and Data Act (AIDA) (Part III of Bill C-27) - contained some data governance requirements for anonymized data used in AI in its original version. These were meant to dovetail with changes to PIPEDA reflected in the Consumer Privacy Protection Act (CPPA) (Part I of Bill C-27). The CPPA provides in s. 6(5) that “this Act does not apply in respect of personal information that has been anonymized.” Although no such provision is found in PIPEDA, this is, to all practical effects, the state of the law under PIPEDA. PIPEDA applies to “personal information”, which is defined as “information about an identifiable individual”. If someone is not identifiable, then it is not personal information, and the law does not apply. This was the conclusion reached, for example, in the 2020 Cadillac Fairview joint finding of the federal Privacy Commissioner and his counterparts from BC and Alberta. PIPEDA does apply to pseudonymized information because such information ultimately permits reidentification.

The standard for identifiability under PIPEDA had been set by the courts as a “’serious possibility’ that an individual could be identified through the use of that information, alone or in combination with other available information.” (Cadillac Fairview at para 143). It is not an absolute standard (although the proposed definition for anonymized data in C-27 currently seems closer to absolute). In any event, the original version of AIDA was meant to offer comfort to those concerned with the flat-out exclusion of anonymized data from the scope of the CPPA. Section 6 of AIDA provided that:

6. A person who carries out any regulated activity and who processes or makes available anonymized data in the course of that activity must, in accordance with the regulations, establish measures with respect to

(a) the manner in which data is anonymized; and

(b) the use or management of anonymized data.

Problematically, however, AIDA only provided for data governance with respect to this particular subset of data. It contained no governance requirements for personal, pseudonymized, or non-personal data. Artificial intelligence systems will be only as good as the data on which they are trained. Data governance is a fundamental element of proper AI regulation – and it must address more than anonymized personal data.

This is an area where the amendments to AIDA proposed by the Minister of Industry demonstrate clear improvements over the original version. To begin with, the old s. 6 is removed from AIDA. Instead of specific governance obligations for anonymized data, we see some new obligations introduced regarding data more generally. For example, as part of the set of obligations relating to general-purpose AI systems, there is a requirement to ensure that “measures respecting the data used in developing the system have been established in accordance with the regulations” (s. 7(1)a)). There is also an obligation to maintain records “relating to the data and processes used in developing the general-purpose system and in assessing the system’s capabilities and limitations” (s. 7(2)(b)). There are similar obligations the case of machine learning models that are intended to be incorporated into high-impact systems (s. 9(1)(a) and 9(2)(a)). Of course, whether this is an actual improvement will depend on the content of the regulations. But at least there is a clear signal that data governance obligations are expanded under the proposed amendments to AIDA.

Broader data governance requirements in AIDA are a good thing. They will apply to data generally including personal and anonymized data. Personal data used in AI will also continue to be governed under privacy legislation and privacy commissioners will still have a say about whether data have been properly anonymized. In the case of PIPEDA (or the CPPA if and when it is eventually enacted), the set of principles for the development and use of generative AI issued by federal, provincial, and territorial privacy commissioners on December 8, 2023 make it clear that the commissioners understand their enabling legislation to provide them with the authority to govern a considerable number of issues relating to the use of personal data in AI, whether in the public or private sector. This set of principles send a strong signal to federal and provincial governments alike that privacy laws and privacy regulators have a clear role to play in relation to emerging and evolving AI technologies and that the commissioners are fully engaged. It is also an encouraging example of federal, provincial and territorial co-operation among regulators to provide a coherent common position on key issues in relation to AI governance.

 

Teresa Scassa

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