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ARTICLE · 10 DECEMBER 2025

Data Sovereignty: Looking To The Past As Canada Decides How To Move Forward

Osler, Hoskin & Harcourt LLP
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We expect 2026 to be the year in which the Government of Canada reveals its strategy in response to vocal calls for digital and artificial intelligence (AI) policies that prioritize data sovereignty.

CanadaPrivacy
Michael Fekete
Michael Fekete
John Salloum
John Salloum
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Key Takeaways

  • In 2026, the Government of Canada plans to reveal its new national AI strategy.
  • If Canada's AI strategy prioritizes data sovereignty, there will be significant implications for public sector organizations and private sector businesses.
  • Canada's AI strategy should adopt a risk-based approach to data sovereignty, accounting for all applicable security, economic and technological factors and without imposing blanket restrictions.

We expect 2026 to be the year in which the Government of Canada reveals its strategy in response to vocal calls for digital and artificial intelligence (AI) policies that prioritize data sovereignty. "Data sovereignty" refers to the need to ensure that Canadian courts have exclusive authority over data that is collected, stored or processed within Canada's borders. In particular, industry experts have recommended that Canada take measures to ensure data remains in Canada and is insulated from search warrants or

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