Accounting work runs on confidential client information. Sending it to a hosted AI model means sending it to another company's servers, often outside Canada.
PIPEDA governs how private-sector organizations handle personal information across much of Canada, alongside provincial laws in Quebec, Alberta and British Columbia. Quebec's private-sector privacy law, as amended by Law 25, requires a privacy impact assessment before personal information is communicated outside Quebec.
Federal Bill C-36, tabled on June 15, 2026 to replace PIPEDA's private-sector rules, would require a privacy impact assessment before personal information is transferred outside Canada. It is still before Parliament and may change.
Running the model on hardware the firm controls keeps the AI step out of that question entirely. This is general information, not legal advice.