TORONTO, July 27, 2026 – Should Canadian users be clearly told when a photo, video or even an online customer service conversation involves artificial intelligence? As AI becomes harder to distinguish from human-created content, the federal government has begun studying new transparency rules.
Innovation, Science and Economic Development Canada launched a national public consultation on AI transparency on July 23. The consultation seeks input from residents, businesses, research institutions and civil society organizations on how to help the public better understand when they are interacting with AI, and whether online content has been generated or modified by AI. The consultation will remain open until September 23.
The discussion first focuses on the growing presence of AI-generated content. As generative AI can now create realistic images, voices and videos, it is becoming increasingly difficult for ordinary users to judge authenticity with the naked eye. The government is therefore seeking views on whether clearer identification methods are needed, including tools that help users determine whether a piece of content was generated or modified by AI.
The Canadian government has previously mentioned in its national artificial intelligence strategy that tools such as digital watermarking could help improve transparency around AI-generated content. However, there is currently no decision that all AI images or videos will be required to carry a standard label in the future. This remains a policy consultation stage.
The second issue, which is more directly connected to ordinary consumers, is whether businesses should proactively disclose when they use AI to communicate with customers.
For example, when users contact a website about refunds, insurance, banking or other services, and the response comes from an AI chatbot rather than a human representative, the government is studying whether users should be able to clearly know that fact instead of having to guess based on the conversation.
The consultation also covers disclosure about AI systems themselves. Before a user or business uses an AI product, should it be easier to understand how the system was developed, what tasks it can perform, what limitations it has, and whether traceable records should be kept when serious problems occur? These are all part of the consultation.
Another emerging issue comes from AI agents. Some AI tools can now do more than answer questions. They can also act on behalf of users. The government says that when AI begins carrying out tasks for people, it becomes important to consider how to track what actions it has taken, which systems it has interacted with, and how responsibility can be traced if something goes wrong.
However, the consultation does not mean Canada has already introduced a new mandatory AI labelling law. At this stage, the government is collecting public input. After the consultation closes, it will review the feedback and publish a summary report before deciding what steps to take next.
Residents can participate through an anonymous questionnaire or by submitting written comments. The government also reminds participants that written submissions may be published as public documents, so personal or confidential information should not be included in feedback.
For ordinary Canadian residents, this discussion ultimately raises an increasingly practical question: as AI enters shopping, customer service, social media and everyday access to information, should people at least have a basic right to know whether the content they are seeing, or the person they are communicating with, is actually AI?（LJI by Yuanyuan）
