ARTICLE
11 April 2025

Beyond Fear: Law, AI And The Digital Transition

BB
BCF Business Law

Contributor

With more than 520 employees, including 270 professionals, BCF Business Law is the go-to firm for business leaders, growing companies, and well-established global enterprises that have chosen Québec and Canada as a stepping stone to growth and success. BCF is the firm that allows you to see further and act with confidence, turning vision into action.
Economic uncertainty is omnipresent. The latest Québec budget is a clear reminder that the province's economic resilience requires targeted measures and investments.
Canada Technology

Economic uncertainty is omnipresent. The latest Québec budget is a clear reminder that the province's economic resilience requires targeted measures and investments. This budget emphasizes tax measures for technology investments, including artificial intelligence (AI), and rightly so.

The Québec Budget and AI

The modernization of the tax credit for the development of e-business sends a clear signal: tax incentives will now require essential AI integration and may even include activities such as data processing and hosting.

Too often, the conversation on AI overindexes the associated risks, particularly from a legal standpoint. The Conseil de l'innovation du Québec's report Prêt pour l'IA, published in January 2024, notes that "current legal standards are not always easy to apply in the field of AI and [that] existing law has certain shortcomings in the face of technological developments."

While some legal issues do indeed remain unresolved, the law still provides a framework that is clear enough for the adoption of AI tools in the vast majority of cases. The latest budget sends a clear message to executives: overcome the challenges and embrace AI, or risk losing important tax credits. The legal hurdles are surmountable if you have experience deploying this type of technology.

The Legal Risks of AI

Adopting AI is an organizational transformation that also requires the evolution of our traditional legal reflexes. Embracing AI is like developing a new muscle, as is our ability to proactively assess, mitigate and manage AI-related legal risks. So what is to be done if the perceived risks are exaggerated because of fear of the unfamiliar?
Adopting AI is the solution; not "all-out," without nuance or without regard to the legal framework, but step by step, within the bounds of the law and intentionally.

Adopting AI: an Organizational Transformation

For companies that want to see ROI on AI, it is imperative to define the corporate culture, not only when it comes to AI but also when integrating relevant and measured legal thinking. What's more, organizations must work as a team, with all stakeholders, and rely on legal expertise adapted to and aware of the issues at stake regarding AI. Legal risks do exist, but they can be managed by establishing long-term initiatives.
The AI-related challenges mentioned by the Conseil de l'innovation du Québec are a call to action, not a reason to sit this moment out. This is an opportunity to shape a corporate culture that understands and proactively manages the legal (and other) risks around AI. Our specialized legal advisors have been tackling the challenges associated with this sector for many years, and their practice has continued to evolve since the arrival of ChatGPT. The growing importance of the AI issue represents an exciting opportunity for curious and ambitious managers and lawyers to mitigate the risks of AI and take advantage of its business opportunities.

What Advice Do We Have for Companies Worried About the AI Shift Imposed by the Latest Budget?

  • Fear of AI doesn't guarantee success. You need to hone your AI expertise, including on the legal side. The risks are real, especially if you start out unprepared. Don't let the fear of a marathon stop you from starting with a healthy walk and then a jog.
  • Curiosity is the key, both in legal and technical terms. Solutions do exist. AI risks are managed contractually and technologically.
  • Context is everything. Think of your company's data. Vigilance and understanding of contracts are essential; however, treating every piece of data in the same way, legally speaking, can deprive your organization of important benefits and, above all, agility. AI is not a monolith; the use case, having humans in the loop, the way AI is deployed, and the data and tools chosen all have significant impacts on the level of risk. It's essential to understand how to use these different levers to align deployments with the company's risk tolerance.

We're a resolutely pragmatic and entrepreneurial law firm, so it's only natural for us to promote artificial intelligence as a key economic driver for Québec. As executives, leaders and economic players in the province, you're being asked by Budget 2025 to embrace AI beyond research and experimentation. We're part of a growing cross-functional community of people who have successfully contributed to multiple AI deployments and found creative solutions to manage all types of risk. We have the means to tackle complex issues and get things done. Join us—the possibilities are endless!

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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