Navigating AI + Privacy Law in 2025: What Creators Need to Know
TORONTO, ON –
The creator economy runs on innovation.
From AI-powered editing suites and script-writing assistants to sophisticated analytics tools, you use cutting-edge technology every day to build your brand and engage your audience. But as these tools become more powerful, the legal landscape in Canada is struggling to keep pace, creating a complex and uncertain environment for creators.
With major federal legislation like Bill C-27 on pause and provinces like Quebec forging ahead with stringent new rules, understanding this maze is critical, and foresight is your greatest asset.
Let’s break down what’s happening and what it means for you.
Agenic AI
/eɪˈdʒɛn.tɪk/ (n.)
Advanced AI tools and systems designed to independently act reason, and adapt to achieve complex, long-term goals with limited or no human supervision.The conversation around artificial intelligence and data privacy is no longer just for tech giants and policymakers. It directly impacts your content, your contracts, and the long-term security of your creative business.
The Big Picture: The Federal Government's Plan On Pause
Until recently, the federal government’s flagship effort to modernize Canada’s privacy laws was Bill C-27. Though it didn’t pass before Parliament was dissolved in 2024, it remains a vital benchmark for where Canadian regulation may be headed.
The bill was composed of two key parts relevant to content creators:
Consumer Privacy Protection Act (CPPA): This was designed to modernize Canada’s existing privacy laws. For creators, its most important feature was the introduction of new rights around automated decision-making.
For example, if a brand used an AI to screen creator applications or an algorithm made a decision that impacted you, the CPPA would have given you the right to an explanation of how that decision was made.
Artificial Intelligence and Data Act (AIDA): This was Canada’s first attempt to regulate AI systems directly. It aimed to establish rules for “high-impact” AI — systems that could significantly affect someone’s rights, safety, or opportunities (e.g., in hiring or finance). AIDA would have required companies to assess and mitigate risks, be transparent about how their AI works, and report serious incidents.
While this bill is currently on hold, its principles are guiding how many organizations are preparing for the future of AI governance.
The Core Debate:
AI Regulation.
The pause of Bill C-27 highlights a fierce debate among legal experts: is privacy law the right tool to regulate AI?1. One perspective argues that privacy laws and AI laws are trying to solve different problems:
Privacy law, like Canada’s current Personal Information Protection and Electronic Documents Act (PIPEDA), is focused on giving individuals control over their personal data.
In contrast, AI regulation needs to be focused on harms and outcomes, e.g., who gets denied a loan or whether a system is discriminatory.
Trying to use data-centric privacy laws to govern outcome-centric AI might not make the most sense.
2. Another perspective suggests that it may be premature to regulate AI altogether because the technology is still in its early stages. The argument is that many of the potential harms of AI (such as discrimination, copyright infringement, or misuse of personal data) are already addressed by existing laws, including charters of rights, criminal codes, and robust data protection legislation.
The Quebec Model: A Stricter Future?
While the federal government deliberates, Quebec has surged ahead with its own provincial legislation. Law 25 is now arguably the most stringent privacy law in Canada, imposing significant obligations on any business that handles the personal information of Quebec residents.
For creators, this is crucial.
If you have followers in Quebec, work with Quebec-based brands or agencies, or process data from the province, Law 25 applies to you.
Law 25 is notable for several reasons:
Clarity and Scope: It provides clear rights to individuals and clear duties to organizations. Unlike federal law, it also applies to employee personal information, making it more comprehensive.
Heavy Penalties: Non-compliance can result in fines of up to $25 million or 4% of global revenue.
Focus on Biometrics: Quebec has also updated its laws around biometrics, which are highly relevant in an age of AR filters and facial recognition. Using biometrics to identify or authenticate someone requires explicit consent and disclosure to the Quebec Data Protection Authority.
One flawed aspect of Law 25, however, is that it lacks the clear distinction between “data controllers” and “data processors” found in Europe's GDPR, which could create confusion and hold some service providers to an unfairly high standard.
Impacts of Law 25 for Creators
These legal shifts may seem abstract, but they have real-world consequences for your work.
Automated Decision-Making in Brand Deals: Imagine a brand uses an AI to vet hundreds of creator applications. Bill C-27’s proposed rules defined automated decision-making very broadly, including any technology that “assists” human judgment. Even an Excel spreadsheet used to score resumes could theoretically have been included. If future laws adopt this approach, brands will have transparency obligations, and you may have a right to know why an AI screened you out.
Biometrics and Your Content: Are you using an AR filter that maps a user’s face? Are you creating content for a brand’s virtual try-on tool? Under Quebec's rules, this involves biometrics. This means the brands you work with (and potentially you, as a contractor) have strict compliance obligations regarding consent and disclosure.
Agentic AI and Liability: We are entering the era of “agentic AI” — tools that can act independently on your behalf. For example, an AI could scan your Spotify, find a concert for a band you like, access your credit card, buy tickets, and add it to your calendar, all without direct oversight. When these agents interact with brands or platforms on your behalf, it raises complex legal questions: Who is giving consent? Who is liable if something goes wrong?
Your contracts will need to evolve to address this new reality.
3 Steps to Take Today
In a landscape of legal uncertainty, waiting for perfect clarity is not a strategy. The best approach is to be proactive.
Here are three practical steps you can take now:
Build Your AI Risk Framework: Start by defining what your brand is comfortable with. Classify the AI tools you use based on risk level. For example, using a private AI model within your own secure environment (like Microsoft Co-pilot) carries a very different risk than inputting sensitive brand information into a public AI tool that may use your data for training.
Audit Your AI Toolkit: Get a clear picture of what AI is being used in your business right now; both with and without your knowledge. Are team members using public AI tools for work? Where does AI touch high-risk situations, like making claims about a product or handling personal data?
Review Your Contracts and Privacy Notices: Your contracts, especially with vendors and brands, need to reflect this new reality. Are they silent on AI? If not, do they strike the right balance, allowing for efficiency gains while prohibiting high-risk uses without your permission? Your privacy notice also likely needs an update to disclose how you or your vendors use AI in connection with personal information.
* * *
The future of AI regulation in Canada is still being written.
By understanding the core issues and taking strategic, proactive steps, you can protect your business, build a sustainable career, and continue to innovate with confidence.
Need help understanding the intricate contracts that govern your creative work, or want to build a strategy for IP protection? Diverge Legal is here to help.
If you’re ready for representation that understands the difference between a data point and your dream, contact Diverge today.
You may also like…
More about DIVERGE
Diverge is not just a legal service provider. We’re your partner in building a legally sound and sustainable content creation business. We understand the unique challenges creators face and offer tailored solutions to protect your intellectual property, ensure regulatory compliance, and minimize legal risks.
Whether you’re an established influencer or an emerging creator, Diverge is here to help you focus on what you do best, while we take care of the legal complexities.
Reach out to Diverge today to learn more about how we can support your content creation journey.
Follow @diverge.legal on social media or subscribe to our newsletter below for more tips on protecting your creative rights and thriving in the creator economy.
Important Notice: The information in this article is provided for general informational purposes only and is not intended as legal advice. Reading this content does not create a lawyer-client relationship. Always seek professional legal counsel tailored to your specific situation. No part of this article may be reproduced or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in any retrieval system of any nature, without the express written permission of Diverge Legal.cording or otherwise, or stored in any retrieval system of any nature, without the express written permission of Diverge Legal.
