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AI in Canada AI in Canada

A legal guide to developing and using artificial intelligence
September 10, 2025 35 MIN READ
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Tort liability

Things to know

  • Canadian tort law does not specifically address AI models or systems, but existing legal principles — particularly negligence and those that generally apply to product liability claims — apply where a model or system causes a third party to be harmed.
  • Additional torts such as defamation, misrepresentation, intentional infliction of mental distress, intrusion upon seclusion, breach of confidentiality, placing a person in a false light, and non-consensual distribution of intimate images (among others) may be relevant, particularly in the context of chatbots, generative AI content generation, predictive AI, and deep fakes.

Things to do

  • Conduct regular risk assessments of AI models or systems to monitor system performance and identify foreseeable harms to users and third parties. Ensure risk assessments take into account how a model or system may be used and the potential for malfunction or misuse.
  • Establish robust governance, human oversight and quality assurance measures, especially where AI is deployed in high-risk or safety-sensitive sectors.
  • Assess risks associated with how any applied AI makes use of proprietary or confidential data and, in particular, whether there are potential risks arising from the data sources and/or the transmission of proprietary data outside of the enterprise (including to foreign jurisdictions).
  • Document the design, testing, and deployment processes to support defence of claims made by third parties.
  • Monitor legal developments and prevailing industry standards and prepare to adapt your AI model or system use practices to align with applicable legal requirements and industry guidance.
  • Explore what AI-insurance is available to protect against claims resulting from AI models or systems not functioning as expected.

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