Canadian Heritage

The House of Commons Standing Committee on Canadian Heritage met to study the impact of artificial intelligence on Canada's creative industries. Appearing as witnesses were Eric Chan, a digital generative artist; Warren Sonoda and Samuel Bischoff from the Directors Guild of Canada; and Paul Fogolin from the Entertainment Software Association of Canada.

Eric Chan, a digital generative artist, argued that AI is a transformative tool akin to the printing press or photography, democratizing creativity and enabling new forms of expression. He stated that copyright law already accommodates transformative use and that AI does not constitute theft but rather accelerates existing creative practices. Chan recommended against heavy regulation, warning it could stifle innovation, and suggested exploring blockchain technology to compensate artists for AI-generated derivative works.

Warren Sonoda, national president of the Directors Guild of Canada, described AI as an existential crisis for the screen sector, emphasizing that human authorship must remain central to copyright protection. He warned that AI could replace human storytelling and undermine Canadian and Indigenous narrative sovereignty. Sonoda urged the government to act immediately by establishing clear rules, including mandatory transparency and labelling of AI-generated content, and ensuring public funds do not support entirely AI-generated stories.

Samuel Bischoff, director of policy for the Directors Guild of Canada, called for an opt-in licensing regime requiring creators' consent, acknowledgement, and compensation before their works are used to train AI. He argued that the current copyright framework is sufficient and that no exception for text and data mining should be introduced. Bischoff recommended that Canadian Heritage set guidelines on AI governance, including labelling requirements and restrictions on public funding for synthetic content, to build trust and attract ethical investment.

Paul Fogolin, president and CEO of the Entertainment Software Association of Canada, described AI as a valuable tool that enhances production efficiency and creativity in the video game industry, which contributes $5.1 billion annually to GDP. He stated that AI is used for tasks like generating environments and moderating online play, but that human creators remain central to storytelling and intellectual property. Fogolin opposed legislative changes to the Copyright Act at this time, arguing it is technology-agnostic, and cautioned against being a first mover in AI regulation, as it could harm Canada's global competitiveness.

During questions, Chan and Sonoda disagreed on the scale of threat, with Sonoda arguing AI's capacity to replace human authorship is unprecedented, while Chan maintained it is a natural evolution of creative tools. Bischoff and Fogolin diverged on the need for an opt-in versus opt-out licensing model, with Bischoff favouring opt-in and Fogolin suggesting the current legal framework is adequate. The committee did not debate procedural motions or votes.