AI unleashed: The explosive growth and hidden risks

AI is no longer a futuristic concept — it’s here, moving faster than regulations can keep up

Ready or not, AI is here: It’s reshaping industries, transforming decision making, and embedding itself into our daily lives, often without us even knowing. It’s been a fast evolution, one that comes with unprecedented risks.

By 2026, AI will generate new use cases by the minute, influencing everything from mortgage approvals to university admissions, insurance payouts, and hiring decisions. Yet, while AI promises to help you streamline processes and improve efficiency, its impact gives way to concerns.

Already, fraudsters are leveraging AI to launch sophisticated cyber-attacks, deepfake scams, and ransomware campaigns. Overreliance on AI-enabled decision-making raises concerns about transparency, security, and ethical responsibility. Biases within these systems are already well established. Given that many of these biases originate in how AI models are trained, they are not always easy to spot or correct once the issue is identified.

How do Canadians feel about it?

Canadian businesses, workers, and policymakers are engaging AI with optimism and caution. Consider the following:

• A survey by the Peninsula Group found that only 10 percent of small and medium-sized businesses regularly use generative AI platforms like ChatGPT or Gemini. Barriers include data privacy issues, response quality, and legal exposure.
• 51 percent of Canadians worry about AI’s potential to spread misinformation and deepfake content, according to a poll by the Canadian Internet Registration Authority.
• In November 2024, Canada launched the Canadian Artificial Intelligence Safety Institute (CAISI) with a $50 million budget to address AI risks and advocate for responsible development.

Risks to watch

Bias and discrimination: AI systems can perpetuate biases, leading to unfair treatment in decision-making, such as hiring, lending, and insurance.

Privacy violations: AI-powered tools can collect and analyze vast amounts of individual and corporate data, raising serious privacy concerns.

Cyber security threats: Deepfake scams and AI-driven malware are already being used by cybercriminals to threaten businesses and individuals.

Job displacement: While AI creates efficiencies, it also automates roles, which can lead to workforce disruptions, skill gaps, and potential societal inequity.

Lack of understanding: Many AI models are complex and even developers have said they don’t fully understand how or why they work. Users should, therefore, remain skeptical about how decisions are made and how much to trust AI.

AI weaponization: Autonomous AI-driven weapons and cyberwarfare tools pose global security threats due to risks of misuse or accidental escalation.

Regulatory uncertainty: Inconsistent or changing AI regulations may create challenges for businesses, leading to compliance risks or stifled innovation. Governments may struggle to stay ahead of the innovation and use of AI, and therefore any regulation enforced could be outdated before it is even approved.

Over-reliance on AI: Allowing AI to make important decisions without human oversight can lead to major failures if the system malfunctions or provides an inaccurate output. If human safety could be impacted, it could have dire consequences.

Intellectual property issues: Questions about the ownership of AI-generated content or innovations, as well as the use of copyrighted data in AI training, may result in legal or ethical challenges.

Ethical concerns and public backlash: If your organization misuses AI for unethical reasons — like mass surveillance, deepfake misinformation, or AI-driven disinformation — it could lead to reputation harm and public opposition to AI platforms.