How AI is Regulated Across FDA, Health Canada, and the EU

How AI is Regulated Across FDA, Health Canada, and the EU

April 20, 2026 By

AI is already part of your regulatory process

AI isn’t coming to life sciences—it’s already here.

It’s being used to screen ingredients, draft labels, monitor claims, summarize safety data, assemble submissions, and support regulatory decision-making across dietary supplements, Natural Health Products (NHPs), pharmaceuticals (OTC drugs), biotherapeutics, cosmetics, and food products.

The upside is obvious: faster timelines, more efficient workflows, and better use of data.

The downside is less obvious—but much more important.

AI is now influencing decisions that regulators ultimately hold companies accountable for. And in many cases, it’s being used without formal validation, governance, or traceability.

As we mentioned in our ISO/IEC 42001 article, AI governance isn’t something you apply at the end—it needs to exist across the entire lifecycle, from initial use to ongoing monitoring.

So the real question isn’t whether to use AI.

It’s how regulators are thinking about it—and where the risks actually sit.

Scope: where AI shows up in regulated workflows

This isn’t about AI as a standalone product.

This is about AI being used inside regulated processes across:

  • Dietary supplements and NHPs
  • Pharmaceuticals (OTC drugs) and biotherapeutics
  • Cosmetics and personal care
  • Food ingredients and novel foods

AI is already embedded across the full lifecycle—from planning and submission strategy through formulation, regulatory review, labeling, submission management, and post-market monitoring.

That breadth is what makes AI particularly complex from a regulatory perspective.

The frameworks governing these products were designed around human decision-making. They assume traceability, accountability, and a clear chain of responsibility. AI does not remove those expectations—it introduces new ways for them to break down if not properly controlled.

Where regulators stand right now

At a high level, there are three distinct approaches emerging globally.

The EU has taken the most structured approach, implementing a comprehensive, risk-based legal framework through the AI Act. This framework classifies AI systems based on their level of risk and applies corresponding obligations, from transparency requirements to strict controls for high-risk systems.

The United States, led by FDA, has taken a more operational and sector-specific approach. Rather than relying on a single overarching AI law, FDA is integrating AI into internal review processes while also developing targeted expectations for areas such as drug development, regulatory decision-making, and AI-enabled medical devices.

Health Canada remains principles-based and evolving while not having a principled AI framework in place. The proposed Artificial Intelligence and Data Act (AIDA) represents a move toward a formal framework, but Canada currently relies heavily on existing legislation and voluntary guidance.

Across all three, there is a clear convergence:

  • AI must be risk-based
  • Outputs must be explainable and traceable
  • Human oversight is required
  • AI systems must be continuously monitored

This reflects broader global regulatory trends, where governments are balancing innovation with safety, transparency, and accountability.

How AI is treated across the lifecycle

The differences between regions become much clearer when you look at how AI is treated across each stage of the regulatory lifecycle. While the underlying principles are starting to align globally, the way each regulator operationalizes those principles still varies.

AI across the regulatory lifecycle

Lifecycle StageFDA (U.S.)Health CanadaEUWhere AI Creates Risk
Planning & StrategyMoving toward structured, AI-supported decision frameworks tied to context of useNo formal AI framework; relies on existing regulatory expectationsRisk-based classification applied early in lifecycleChoosing the wrong regulatory pathway or building strategy on unverified outputs
Formulation & DevelopmentAI acceptable if scientifically credible and validatedFull responsibility remains with sponsorStrong emphasis on data governance and transparencyBias in training data, non-reproducible outputs, flawed assumptions
Regulatory ReviewIncreasing use of AI-assisted tools to review submissions and safety dataNo comparable public AI deploymentEMA developing internal AI capabilitiesSubmissions not structured for AI-assisted review; inconsistencies exposed
Market Authorization & ChangesExpectation for structured, consistent submissionsGoverned through existing frameworks (e.g., NPNs, DINs)Lifecycle-based oversight rather than static approvalVersion drift, undocumented AI-generated updates
Labeling & ClaimsAI used for label comparison and consistency checksGoverned under existing labeling regulationsTransparency obligations tied to AI useNon-compliant claims, fabricated or unsupported substantiation
Submission ManagementShift toward structured, machine-readable dataNo specific AI guidance; internal governance expectedStrong documentation and traceability expectationsData leakage, lack of audit trail, unclear provenance of outputs
Lifecycle / QA / Safety MonitoringAI used for adverse event summarization and signal detectionEmphasis on monitoring under existing frameworksIncreasing focus on AI-enabled pharmacovigilanceMissed safety signals, automation bias, inadequate escalation

What actually makes each region different

The EU’s approach is the most formalized. The AI Act introduces a clear, risk-based model where obligations scale based on the level of risk posed by the system. High-risk systems must meet strict requirements related to data governance, transparency, and oversight.

The FDA’s approach is more practical and iterative. Rather than waiting for a comprehensive legal framework, it is actively integrating AI into regulatory processes. This means companies are increasingly being evaluated in environments where AI plays a role in review and decision-making.

Health Canada’s approach is more flexible—but also more ambiguous. There is currently no comprehensive AI-specific regulatory framework. While AIDA proposes requirements around identifying and mitigating risks of harm and bias, much of its implementation remains pending. Within different product categories, there are also different levels of controls around regulation of AI. Health Canada has more concrete AI/ML guidance in the medical device space, including ML-enabled medical device guidance and joint GMLP / transparency / PCCP principles with FDA and MHRA

This creates a unique dynamic:

AI is not always explicitly regulated—but its outputs are still fully regulated.

The real risk: AI inside decisions

Across all regions, the biggest issue isn’t AI itself.

It’s how AI is being used inside regulated decisions.

AI systems can generate outputs that appear credible but are factually incorrect. They can introduce bias through skewed datasets. They can summarize complex data in ways that omit critical context. And they can create a false sense of confidence in outputs that haven’t been properly validated.

These risks are not theoretical.

Research shows that AI-enabled systems in therapeutics can accelerate development and regulatory processes, but also introduce risks related to hallucinations, bias, and lack of transparency—each of which can directly impact safety, efficacy, and compliance.

Where the regulatory challenges are

There are several consistent challenges across jurisdictions that companies need to account for when integrating AI into regulated workflows.

  • Lack of a global standard
    There is no single harmonized framework for AI governance in life sciences. Each region is developing its own approach, which creates complexity for companies operating across multiple markets and increases the burden of ensuring compliance across jurisdictions.
  • Pace of innovation vs. regulation
    AI technologies are evolving significantly faster than regulatory guidance. This creates grey areas where companies are required to make internal, risk-based decisions without clear or consistent regulatory direction.
  • Data governance and quality
    AI systems rely heavily on the quality, completeness, and representativeness of underlying data. Weak data governance practices can introduce bias, reduce reliability, and ultimately compromise regulatory defensibility.
  • Explainability and transparency
    Regulators expect to understand how decisions are made, particularly when they impact safety, efficacy, or compliance. However, many AI systems—especially generative models—lack transparency, making it difficult to clearly explain how outputs were generated.
  • Accountability remains unchanged
    The use of AI does not shift regulatory responsibility. Regardless of how outputs are generated, companies remain fully accountable for ensuring that decisions, submissions, and claims meet regulatory requirements.

What this means for industry

For companies operating in regulated life sciences environments, the implications are clear.

AI is becoming embedded in regulatory workflows, but it does not reduce regulatory burden—it changes it.

Organizations must now manage not only submissions and compliance outputs, but also the systems that generate those outputs. That includes ensuring data integrity, validating outputs, maintaining traceability, and implementing governance frameworks.

Companies that treat AI as a simple efficiency tool are more likely to introduce risk. Those that integrate it into their regulatory and quality systems are more likely to create long-term value.

How to be prepared

The most effective approach is to treat AI as part of the regulatory and quality system.

That includes:

  • Defining where AI is used and for what purpose
  • Assessing risk based on context of use
  • Validating outputs within regulatory context
  • Maintaining documentation and audit trails
  • Ensuring human oversight at critical decision points
  • Monitoring performance over time

As highlighted in our ISO/IEC 42001 article, governance frameworks are critical—not just for compliance, but for maintaining control as AI systems evolve.

Conclusion

AI is already embedded in how regulatory work is performed across life sciences. From early-stage planning through labeling and post-market monitoring, it is influencing decisions that directly impact compliance, safety, and market access.

What differs across jurisdictions is not the direction—but the level of maturity. The European Union has taken a more structured and prescriptive approach through a formal risk-based framework. The FDA is advancing more operationally, integrating AI into its internal processes and expectations. Health Canada continues to evolve, relying on existing regulatory structures while broader AI-specific legislation develops.

Despite these differences, a consistent expectation is emerging. Regulators are not restricting the use of AI—but they are reinforcing the need for control, transparency, and accountability in how it is used.

For companies, this means AI cannot be treated as a standalone tool or a simple efficiency gain. It must be integrated into regulatory and quality systems in a way that ensures outputs are traceable, validated, and defensible.

Ultimately, the risk is not the adoption of AI itself, but the lack of governance around it. Organizations that recognize this—and build appropriate controls into their processes—will be better positioned to leverage AI while maintaining compliance across global markets.

How dicentra can help

At dicentra, we work at the intersection of regulatory affairs, quality systems, and clinical strategy—where the impact of AI is already being felt across the product lifecycle.

As AI becomes more embedded in regulatory workflows, the challenge is no longer whether to use it, but how to ensure it is implemented in a way that remains compliant, defensible, and aligned with evolving regulatory expectations.

We support companies by:

  • Assessing where AI is currently being used across regulatory and quality processes
  • Identifying potential compliance risks tied to AI-generated outputs
  • Aligning internal workflows with expectations from FDA, EMA, and Health Canada
  • Implementing governance frameworks informed by standards such as ISO/IEC 42001
  • Ensuring submissions, labeling, and safety processes remain traceable and audit-ready

Our role is to help organizations adopt AI in a way that strengthens—not compromises—their regulatory position.

Contact dicentra for support with artificial intelligence in regulatory affairs.