In the IIAC’s review and analysis of the Canadian Securities Administrators (CSA) Staff Notice and Consultation 11-348, Applicability of Canadian Securities Law and the Use of Artificial Intelligence Systems in Capital Markets, the IIAC agreed with the principle that securities regulation is technology-neutral. The CSA has an extensive regulatory framework in place to address risk irrespective of the technology used. Artificial intelligence (AI) brings benefits and opportunities. We should incentivize its development and adoption to grow Canada’s competitiveness. AI is subject to widely different risks depending on where and how it is used. A risk-based approach that draws on current regulatory obligations to focus on high risk uses will encourage innovation and address investor protection concerns.

For the IIAC’s full analysis click here.