How Bill C-34 Will Change Our Relationships with AI
AI laptop
Deniz Demirci, Unsplash.

It will regulate the content of our conversations, but also the bonds we forge

Among the many dangers we often hear about in coverage of AI, some of the most concerning involve cases where a chatbot encourages a person to commit suicide or aids in the commission of a violent offence. Other, less extreme cases of harm involve people developing unhealthy psychological relationships with chatbots, relying on them for erroneous medical or legal advice.

Bill C-34, Canada’s new Safe Social Media Act , tabled last week, imposes a new set of duties on the AI companies behind ChatGPT, Claude, and Gemini that may push them to do more to prevent these various harms. While most of the coverage of the bill has so far focused on the social media ban for those under 16, another important aspect is that it represents Canada’s first attempt to regulate the behaviour of conversational AI systems themselves.

The bill will seek to minimize harmful outputs, but more broadly, it will regulate the kinds of relationships these systems are allowed to form with users.

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Will Canadians now have to prove their age to use social media?

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A first look at Bill C-34 , Canada’s new Safe Social Media Act, and how the under-16 ban might work

The federal government introduced Bill C-34 yesterday, its third attempt at online harms legislation after the failure to pass Bill C-63 last year.

Most of the media coverage has focused on the ban on social media accounts for children under 16, giving rise to the question of how this will work in practice. Will we all now need to provide platforms with proof that we’re over 16? And what will this entail?

It’s not entirely clear yet. One of the main takeaways of the bill is that details around how the ban will work, along with many duties and obligations the bill imposes, are left to regulations to be passed in the future — or to self-regulation — leaving many things unclear. But the general thrust of where we’re headed is coming into view.

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Will Canada’s new AI strategy make a difference in practical terms?

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Light on specifics, “AI for All” points to a future of limited state impact on the course of AI in Canada — which may be a good thing

Coverage of Prime Minister Carney’s unveiling yesterday of Canada’s long-awaited national AI strategy, “AI for All,” is dominating this morning’s news cycle. You’ve probably already heard the details by now — aiming to build trust in AI, foster literacy, uptake, sovereign compute, and so on.

The document itself , some 50 pages, offers a vivid snapshot of where Canada is at with AI: who’s using it, building it, resisting it, where, when, and how. Well worth reading if you’re curious. In a sentence, Canada is committing to spending $2.3 billion over the next five years, hoping to dramatically increase industry adoption, create a quarter-million new jobs, boost AI development in the private sector, and bolster our domestic infrastructure for AI.

The three critical responses I’ve heard so far are that it’s light on specifics needed to assess whether many of its goals are achievable, such as increasing transparency in AI. It fails to address job-loss risk . And it fails to read the room , urging that we charge ahead with AI adoption with minimal regulation when “an overwhelming majority, 68 per cent, want AI to be regulated heavily, even if it slows down adoption of the technology.” (Even Anthropic this morning is calling , once again, for a slowdown so that “society” can catch up.)

Reading “AI for All,” I made two observations.

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Could Canada’s new AI data centres be obsolete by the time they’re built?

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Why the shift toward on-device AI puts Ottawa’s $925M data centre bet in question

In my last post, I looked at the case for Canada’s AI data centre build-out. The main argument is that we need to build these centres to remain competitive in an economy transforming around AI and to keep our data sovereign. If the government doesn’t intervene to subsidize them, Canadians will lack “access to the compute they need,” and the centres would be built and controlled by US companies.

In this post, I want to set aside the data sovereignty issue and outline an argument that isn’t receiving much airplay at the moment in debates about the need for new data centres. It goes to the heart of whether we need to build new centres to enjoy the full benefits of AI.

The counter-argument is that access to the compute we need to enjoy many if not most of the benefits of AI is rapidly becoming much less expensive and will soon be accessible at a far lower cost economically and environmentally.

The future of AI, the argument goes, is not one in which the models we interface with most often are situated in the cloud and reliant upon large, energy-hungry data centres. Instead, it’s one in which most of the processing is done on board our personal devices, like our phones or laptops, on a company’s local server, or a rack of servers at a university or an internet service provider.

And this isn’t a matter of pure speculation. The evidence pointing in this direction is mounting. Though, to be clear, we will still need larger models and data centres for some things. The question is how many.

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The Case for Canada’s AI Data Centres Is Thinner Than It Looks

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The economic benefits are modest, the environmental claims are unverified, and the strain on grids and water is real

On Sunday, hundreds of people marched through the streets of Vancouver to protest two new AI data centres Telus is building in the city — which has just announced water restrictions with more expected in June.

Ottawa has pledged some $925 million over five years to build “sovereign AI data centres” across the country, and this month it named Telus as the first builder, to expand one facility in Kamloops and develop the two new ones in Vancouver. The case for a build-out rests on a belief that Canada needs more domestic compute or it will stay dependent on foreign infrastructure for something vital. But the case is weaker than it looks, and rests in part on an assumption about the future of AI that may turn out to be false.

AI Minister Evan Solomon says the goal is to ensure that “Canadian innovators, researchers and businesses have access to the compute they need,” while keeping “Canadian data… on Canadian soil.” We need far more domestic processing capacity to stay competitive as AI transforms the economy, and if we fail to build it ourselves, Canadians will become more dependent on foreign entities for some of our most critical infrastructure.

There are reasons to question whether the current rush to subsidize and build these centres is good policy. The economic benefits seem limited once the centres are built. They place a further strain on electricity and water systems that are already stressed. And many of the environmental claims the companies make can’t be easily verified.

More crucially, the push to build a network of large, power-hungry AI data centres assumes that most of the AI we will be using in the years to come will still rely for the most part on large models we access in the cloud. I’ll offer reasons to be sceptical of this in my next post. This one lays out the build-out itself, and how much about it is still unsettled.

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