Outwitting The Algorithmic Tide: Governance Risks And Director Responsibilities For AI Slop (Video)

A phrase that seems to be popping up everywhere in 2025, and which literally did not exist a couple of years ago, is "AI slop." More than a technical nuisance, AI slop (defined as low-effort, poor-quality, or factually inaccurate content mass-produced by generative artificial intelligence models) is a problem for nearly everyone, including in corporate governance. The rapid adoption of generative AI presents Canadian corporate boards with a new challenge: managing the risks associated with AI slop. It can expose organizations to heightened legal scrutiny, reputational damage, and a potential breach of a director's core statutory duties.

As AI becomes increasingly material to business operations, a board's failure to address its attendant risks, including the proliferation of slop, will make it increasingly difficult to demonstrate the requisite care and diligence of a "reasonably prudent person" under the Canada Business Corporations Act (CBCA) and its