AI For All? Canada’s AI Strategy Overlooks Copyright and Generative AI

Key takeaways:

• Canada’s AI strategy prioritizes growth but does not address copyright and generative AI.
• Stakeholders are divided on how AI systems should use copyrighted content.
• Legal uncertainty means courts may determine the path forward.

On June 4, 2026, Prime Minister Mark Carney released AI for All, Canada's new five-year artificial intelligence strategy. Backed by more than $2 billion in funding, the plan sets ambitious targets: it aims to increase the adoption of AI among Canadian businesses from 12 percent to 60 percent by 2034, create up to 250,000 jobs, and generate nearly $200 billion in economic growth.

However, it leaves one critical issue unresolved: how does Canadian copyright law apply to generative AI?

Overview of Canada’s AI strategy

To achieve those goals, the strategy identifies health care, energy, transportation, agriculture, and manufacturing as priority sectors for AI investment. The government also plans to build a world-leading supercomputer and expand Canada’s data center capacity to reduce reliance on foreign infrastructure.

The strategy further emphasizes AI safety through initiatives such as AI-generated content watermarking and a Trusted AI Certification Program.

How does copyright law apply to generative AI?

Despite its broad scope, the strategy does not address how Canada’s copyright law should apply to generative AI. 

AI companies train their models on large volumes of text, images, music, and other content, much of which is protected by copyright. As copyright owners have the exclusive right to reproduce their works, a key unresolved question is whether using copyrighted material to train AI systems constitutes copyright infringement.

A divided debate: Creators vs. technology companies

The government has been examining the issue for years. Its most recent consultation, launched in October 2023, received submissions from 103 organizations and nearly 1,000 Canadians.

The submissions revealed a sharp divide:

• Creators argued that AI developers should obtain permission and pay for licences to train their models on copyrighted works
• Technology companies warned that such requirements would stifle innovation

Although AI Minister Evan Solomon stated in July 2025 that copyright would be addressed in the government's forthcoming AI strategy, the word “copyright” does not appear once in the strategy's 50 pages. The omission suggests the government has yet to decide how to balance the interests of creators and AI developers.

What’s next for AI and copyright in Canada?

In April 2026, a House of Commons report studying the effects of AI on Canada's creative industries recommended greater transparency around AI training data, as well as stronger consent and licensing requirements for the use of copyrighted works in AI systems.

Whether the government adopts those recommendations remains to be seen.

For now, Canadian courts are left to determine how existing copyright law applies to generative AI.