Canada Unveils Responsible AI Strategy for 2025-2027, Setting a Global Benchmark
In March 2025, the Canadian government launched its AI Strategy for the Federal Public Service 2025-2027, outlining how artificial intelligence (AI) will be used to improve public services and decision-making while ensuring responsible and ethical deployment. Building on decades of early AI application use within government—such as Immigration, Refugees and Citizenship Canada’s AI-driven case triaging and Statistics Canada’s data analysis—the strategy introduces a structured framework to advance AI adoption while maintaining public trust and accountability.
The strategy rests on four core principles:
- Human-Centred Design: This principle demands that AI systems enhance accessibility, fairness, and inclusivity while respecting human rights. For example, the Public Services and Procurement Canada’s Human Capital Management AI Virtual Assistant automates routine pay tasks, freeing advisors to tackle complex cases and improve service for employees. These tools showcase how AI can simplify interactions and prioritise user needs. To prevent bias and discrimination, the strategy mandates rigorous ethical audits and bias mitigation techniques, ensuring AI decisions—whether approving a visa or analysing health data—reflect Canada’s values of equity and trust.
- Collaborative Innovation: Canada aims to foster partnerships across government, industry, and research sectors. Increased funding for AI research will target breakthroughs in healthcare, climate science, and smart infrastructure, with initiatives like Agriculture and Agri-Food Canada’s AgPal Chat showcasing how AI can streamline access to resources.
- Readiness and Capacity: The strategy emphasises equipping the public service with the data, tools, and skills needed for secure AI deployment. Shared Services Canada’s CANChat, a secure in-house chatbot, exemplifies efforts to boost productivity while safeguarding privacy.
- Responsible Governance: The strategy also introduces new regulatory measures to protect citizens from AI-related risks, such as privacy breaches and algorithmic discrimination. Federal agencies must conduct risk assessments, disclose AI use—like Innovation, Science and Economic Development Canada’s (ISED) labeled transcription tool—and offer public feedback channels, empowering citizens to challenge decisions, such as in immigration processing. A new oversight body enforces ethical standards, while guidelines ensure responsible AI use in law enforcement and administration, fostering trust and setting a global benchmark.
According to the government, this framework positions Canada as a leader in responsible AI governance, balancing the need for innovation with the protection of citizens’ rights. By integrating AI into everything from air shipment security (Transport Canada’s PACT program) to cybersecurity (the Assemblyline tool), Canada aims to deliver world-class services while protecting its citizens.
Asia’s Diverse AI Landscape: A Contrast in Approaches
As Canada doubles down on structured governance, Asia’s AI ecosystem reveals a spectrum of strategies, reflecting regional priorities and global competition:
- Japan’s Light-Touch Regulation: Japan has recently embraced a “market-friendly” regulatory framework for AI development through its February 2025 Interim Report from the Cabinet Office AI Policy Study Group. Rather than imposing comprehensive legislation, Japan favors voluntary guidelines where businesses lead risk management efforts with strategic government guidance. According to CSIS Analysis, this approach was partly shaped by global trends, including the U.S. rollback of AI regulations under President Trump in 2025. Japan’s response to China’s DeepSeek model, which sparked national security concerns, further reinforced its preference for targeted oversight instead of sweeping restrictions. Through public-private partnerships and industry-led best practices, Japan aims to maintain ethical standards while creating an environment where technological innovation can flourish. This approach contrasts with Canada’s more structured and government-led framework.
- China’s Dual Strategy: China’s dual-pronged strategy combines massive investment with strict governmental control. In February 2025, Beijing announced an $82 billion AI fund focused on accelerating technological development, particularly in AI-driven manufacturing and infrastructure projects. This substantial financial commitment aims to secure China’s position as an AI superpower. Simultaneously, the government has tightened oversight of AI-generated content to ensure alignment with state interests and social stability. This centralised approach reflects China’s determination to achieve technological dominance while maintaining political control over how AI technologies develop and are deployed within its borders.
- Taiwan’s Industry-Driven Push: Foxconn, a Taiwanese manufacturing giant, launched FoxBrain in October 2024. This traditional Chinese large language model, trained using 120 Nvidia H100 GPUs, was specifically designed for AI-driven manufacturing applications. As an open-source initiative, FoxBrain aims to boost efficiency across factories and supply chains, potentially transforming production processes. Taiwan’s focus on practical industrial applications over regulatory frameworks highlights its strategy of leveraging AI for economic competitiveness, particularly in its manufacturing sector where companies like Foxconn maintain global significance.
As AI reshapes economies and societies, these divergent paths will shape the future of governance and competition worldwide.