Given how new publicly available GenAI systems are, there has not been legislative change specific to AI.9 There have also been no legal challenges in Canada. The lack of copyright legislation would not preclude AI services from making a fair dealing argument or using other Copyright Act exceptions, though depending on the use case it may be a challenging argument to make.1
There are a number of copyright-related legal challenges to GenAI services ongoing in the US: Getty Images v Stability AI10 (reuse of stock images), GitHub Users v. GitHub, Microsoft, and OpenAI11 (reuse of open-source code without attribution), and Anderson, McKernan, and Ortiz v. Stability AI, Midjourney, and DeviantArt12 (reuse of images scraped from the web). A more in-depth overview of the GenAI legal landscape in the United States is available through the Congressional Research Service. The outcome of the above cases or any legislative change in the US would not have a binding legal effect in Canada but they serve as a barometer for possible developments in Canada.