Waterloo, Ontario, now has its first set of rules for how artificial intelligence can be used in city hall. City Council approved the Artificial Intelligence Governance Framework Policy at its meeting on June 8, 2026, setting up principles, oversight, and accountability for any future AI tools that might help deliver services or manage operations.
The policy does not approve any specific AI projects. Instead, it creates the guardrails needed to ensure any future use of AI is responsible, transparent, secure, and fair. Council heard that the framework gives the city a way to explore AI’s potential while making sure it follows current and future legal requirements.
City staff acknowledged concerns about the environmental impact of AI, particularly its energy use. They committed to reviewing those impacts and including sustainability principles the next time the policy is updated.
The move comes as more Canadian cities look at AI. A recent report found 23 percent of municipalities already use AI, but 32 percent have no formal policies for it. Ontario has led the way with a provincial directive for responsible AI use in the public sector, which took effect in late 2024. In January 2026, the province’s Information and Privacy Commissioner and the Ontario Human Rights Commission jointly released six principles for responsible AI: accountability, transparency, fairness, privacy by design, human oversight, and redress.
According to the City of Waterloo, the new framework puts a cautious and thoughtful approach in place. It means any future city use of AI would need to explain how decisions are made, check for bias, protect personal information, and let people challenge decisions that affect them.
