No source in this build identifies a Canadian law banning any specific AI tool — the real Canadian action against generative AI has been an open regulatory investigation, not a ban.
Short answer
Not by force of law, as far as any Canadian source on record shows. No federal or provincial statute bans a named AI product. Some employers and institutions restrict which tools staff can use on internal policy grounds, which is different from a legal ban. The most concrete Canadian regulatory action taken against a generative AI service is an ongoing joint investigation by privacy commissioners — not a prohibition, and the regulators involved have deliberately not named the service publicly.
“Banned” has a specific meaning: a law or regulator prohibiting use. A workplace deciding staff shouldn't paste client files into a public chatbot is a policy choice, not a ban with legal force behind it — and it's a sensible one under ordinary privacy obligations regardless of which specific tool is involved. Nothing in Canadian federal or provincial law singles out one AI product by name and prohibits its use, and no source consulted for this page identifies one.
The closest thing to formal Canadian regulatory action against a specific generative AI product is described in the joint privacy-principles document from Canada's federal, provincial and territorial commissioners: “The Office of the Privacy Commissioner of Canada (OPC) and its counterparts in British Columbia, Quebec and Alberta also have an open investigation relating to a particular generative AI service.” The regulators involved — the OPC and its counterparts in British Columbia, Quebec and Alberta — deliberately did not name the service in their own published wording, and this page does the same rather than attaching a name the regulators themselves haven't. An open investigation is a fact-finding and enforcement process, not a prohibition; it can end in findings, recommendations or an order, but the tool remains legal to use while it proceeds.
Several Canadian courts require lawyers and litigants to disclose when they've used an AI tool in preparing a document — the Federal Court, the Ontario Superior Court of Justice, and courts in Manitoba and Yukon all have some version of this rule. None of them ban a tool; they require declaring its use so the human filing the document remains accountable for its accuracy. Alberta's tri-court notice goes the other direction and doesn't even require disclosure, which is itself a useful data point against the idea of a national restriction: Canadian courts don't agree with each other on disclosure, let alone on banning anything.
For who actually investigates when AI use goes wrong in Canada, see which regulator enforces what. And this companion answer covers the legal backdrop for using generative AI tools in Canadian business more broadly.
See what a diligence review actually checks before adoption.