Policy  ·  Submission

Submission to Canada’s AI Transparency Consultation

Filed with Innovation, Science and Economic Development Canada  ·  August 2, 2026

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In July, Ottawa asked how AI systems should be made more transparent. I submitted my response on August 2. The consultation closed on September 23, and the government’s summary of what it heard is expected in the coming months.

Many of the published responses come from universities or law firms. My view comes from the field. I advise the vendors selling AI into the Canadian mid-market, the channel partners deploying it, and the organizations deciding whether to buy. That table is where transparency policy actually succeeds or fails.

The submission offers thirteen recommendations. Five practical realities sit behind them.

Rules should follow consequences, not the tool.

We need to target what a system does, not just whether AI is under the hood. A deepfake video is dangerous because it is false. A proposal drafted with AI and checked by an expert is just ordinary work. If we force companies to flag every use of AI, we add cost without adding safety, and we teach the market that using AI is something to apologize for.

The real gap is on the buyer’s side.

About one in five Canadian businesses used AI in the second quarter of 2026. Almost none have a Chief AI Officer or a data science team. General managers are making these calls based on vendor slide decks. Giving them dense technical documentation does not help. They need clear tools to figure out if their own company is actually ready to deploy these systems safely.

Most companies do not buy AI from the developer.

They buy from resellers, integrators, and managed service providers. A rulebook written only for developers and end users targets two groups who rarely speak to each other. Obligations have to travel down the commercial chain.

Transparency matters most at the moment of decision.

Information is only useful if it arrives before a mistake is made. If an AI system makes a claim, the user needs to see the source material right then and there. Knowing a system uses AI does not stop it from inventing fake legal citations, but showing the underlying source would.

We have tried this before.

Safe Harbor, Privacy Shield, and TRUSTe all failed in well-documented ways. As Canada designs its Trusted AI Certification program, we need to build it on independent verification, not self-attestation. And it cannot be so expensive that it locks out smaller Canadian innovators.

  • Consultation: Enhancing trust in artificial intelligence through increased transparency
  • Department: Innovation, Science and Economic Development Canada
  • Filed: August 2, 2026  ·  12 pages, 13 recommendations
Read the full submission (PDF)

Kapil Raval

Managing Principal of Raval Consulting Inc., a Toronto-based technology advisory practice. He works with technology startups and scaleups on go-to-market strategy, partner programs, sales and BD playbooks, and commercial execution.