Data Sovereignty as a Pillar of Health Equity
The recent Policy Options article, “Canada’s health data is flowing abroad while Ottawa stalls on AI rules,” highlights a critical vulnerability in our national digital infrastructure. For those of us at Newport Thomson, the message is clear: the current legislative vacuum is not just a regulatory oversight, it is a direct threat to the sovereignty of Canadian citizens and, most pointedly, Indigenous Nations.
As the former Bill C-27 (Artificial Intelligence and Data Act) remains in limbo following the 2025 federal election, we are witnessing a “digital drain.” Patient data is increasingly utilized to train foreign AI models, often without the explicit, informed consent of the communities providing that data.
The Critical Intersection: AI, Health, and Indigenous Sovereignty
The article brings to light a profound tension in Northern and rural health clinics. While AI scribes and predictive tools offer a solution to administrative burnout, they often operate on foreign-owned cloud infrastructures. This creates a specific risk for Indigenous Data Sovereignty.
The OCAP® Imperative
Newport Thomson advocates for the universal adoption of the OCAP® principles (Ownership, Control, Access, and Possession) as the gold standard for data governance. When health transcripts or wellness records are uploaded to global servers, the community loses:
- Ownership: The collective right of First Nations to their cultural and health knowledge.
- Possession: The physical stewardship of data, which is currently being outsourced to foreign jurisdictions.
Health Disparities by the Numbers
To understand why data sovereignty serves as a “litmus test” for reconciliation, we must examine the health inequities that these AI tools aim to address. According to 2024-2025 Statistics Canada data:
| Health Indicator | Total Indigenous Identity | Non-Indigenous Population |
| Perceived Mental Health (Very Good/Excellent) | 41.1% | 54.0% |
| Diabetes Prevalence | 11.3% | 8.3% |
| Household Food Insecurity | 33.3% | 19.0% |
When AI models are trained on data from these populations without local governance, we risk creating “biased wellness” models that do not account for the specific social determinants of health unique to Northern and Indigenous communities.
Newport Thomson’s Strategic Response
In the absence of federal leadership, Newport Thomson is working with health-tech developers and community associations to implement “Sovereignty-by-Design.” Our recommendations for the sector include:
- Mandatory Data Residency: We recommend that all healthcare clients require vendors to store and process data exclusively within Canada.
- Auditability as a Contract Clause: Every procurement contract must include the right to audit how data is used, preventing it from being sold to global data brokers.
- Indigenous-Led Governance: We support the call for Indigenous frameworks to be a baseline requirement for any AI tool deployed in a Northern or First Nations context.
Trust is the Only Currency
The article by Taryn Ellens reminds us that “delay is not neutral.” Every week that passes without a health-first AI framework is a week where Canadian wellness data is monetized abroad. At Newport Thomson, we believe that for Canadians to trust AI in health, they must be the stewards of their own stories.
Don’t let a legislative vacuum compromise your data sovereignty. Whether you are a health-tech developer, a community health provider, or a policy leader, the time to implement robust governance is now, not after the next election.
Let’s secure your data future. Contact Newport Thomson today for a Privacy & Sovereignty Audit to ensure your AI initiatives are built on a foundation of trust, residency, and respect.
🔗 Reach us at info@newportthomson.com or DM us to schedule a strategic consultation.
