The Canadian Radio-television and Telecommunications Commission (CRTC) has updated its definition of Canadian content, commonly referred to as "CanCon," stating that artificial intelligence cannot be used to qualify productions. This decision follows a public consultation that garnered feedback from over 2,000 Canadians.

The new definition retains the previous approach, which relies on a points system. Productions must now earn at least 60 percent of the available points to be certified as Canadian. The CRTC has expanded the list of key creative roles that contribute to this total, now including positions such as showrunners, special effects directors, and heads of costuming. However, the CRTC emphasizes that these roles must be filled by humans, not AI.

Scott Shortliffe, the CRTC's vice-president of broadcasting, acknowledged the potential benefits of AI as a creative tool but noted concerns regarding its use. "Today’s decision also recognizes the usefulness and potential benefits of artificial intelligence as a creative tool to assist producers and creators. But that being said, we’ve heard concerns about the use of AI," he said during a press briefing.

The updated definition also allows productions to earn bonus points for cultural elements, such as identifiable Canadian characters or stories based on Canadian publications. Shortliffe explained, "What we’re trying to do in this definition is broaden it so that more productions can be certified as Canadian. Long-term, what we hope that will do is it will spur more collaborations, more money going into Canadian productions that will lead to more better-financed, high-level, glossy Canadian productions, as well as ensuring that you continue to get small point-of-view films and documentaries and television series."

This definition applies to both traditional media and online streaming services. It was released after a two-week public hearing earlier this year. The decision is part of the CRTC's efforts to implement the Online Streaming Act, which aims to modernize broadcasting laws to include online platforms like Netflix. The new regulations will require large streaming services to disclose their broadcasting revenues and spending on Canadian content.

The CRTC noted that some online platforms have expressed concerns that data disclosure could impact their competitiveness. However, the regulator believes that the public interest outweighs any potential harm. Shortliffe stated, "Canadian companies have been required to do this for a very long time."

The Motion Picture Association-Canada, which represents major streaming services, is currently reviewing the CRTC's decision. Large foreign streamers are already contesting a previous ruling that mandates they contribute five percent of their annual Canadian revenues to funds for Canadian content production. The updated CanCon definition also introduces a minimum copyright requirement, stipulating that at least 20 percent of copyright must be held by a Canadian for a production to qualify as Canadian.

The Canadian Association of Broadcasters described the CRTC's decision as balanced and flexible, while also emphasizing the importance of Canadian ownership of intellectual property. The group expressed encouragement regarding the commission’s commitment to reducing the administrative burden on the industry.

As the CRTC continues to refine its regulations, it remains to be seen how these changes will impact the Canadian broadcasting landscape and the production of Canadian content in the future.