PIA (privacy impact assessment)
Privacy & complianceA documented assessment of how a new technology, system, or process interacts with personal information.
A PIA documents what personal information an AI tool accesses, how it uses that information, where it stores it, what third parties receive it, and what controls protect it. Requirements vary by province. BC requires municipalities to conduct PIAs (FOIPPA s. 69(5.3)). Ontario's MFIPPA requires a written assessment before collecting personal information from January 1, 2027. In Alberta, POPA's regulation requires some public bodies to have policies for using personal information in AI systems as part of their privacy management program. Elsewhere, a PIA is recommended practice. A PIA is not a one-time exercise; it should be updated when a system changes significantly.
PII (personally identifiable information)
Privacy & complianceAny information that can identify a specific individual, on its own or combined with other data.
PII includes obvious identifiers like name, address, and email, but also case notes, health and housing details, donor records, and combinations of data points that together single someone out. Canadian privacy statutes use the broader term “personal information”. It is the category of information that privacy legislation protects and that should almost never be entered into a public AI tool without a governing policy and safeguards. Knowing what counts as personal information is the starting point for using AI safely in any organization that holds information about residents, clients, or donors.
PIPEDA (Personal Information Protection and Electronic Documents Act)
Privacy & complianceCanada's federal privacy law for personal information collected in the course of commercial activity.
PIPEDA governs how private-sector organizations handle personal information in the course of commercial activity. It applies to many small businesses, and to non-profits only when they engage in commercial activity, such as selling, bartering or leasing donor or membership lists. In Alberta and BC, most private-sector activity within the province falls under the provincial Personal Information Protection Act (PIPA) instead, and Quebec has its own private-sector law; PIPEDA still applies to personal information that crosses provincial or national borders. These laws set expectations for consent, purpose limitation, safeguarding, and accountability, which apply when customer data is fed into an AI tool. SMC helps organizations identify which regime applies and use AI within it.
POPA (Protection of Privacy Act, Alberta)
Privacy & complianceAlberta's legislation governing how public bodies, including municipalities, handle personal information.
POPA works alongside ATIA, which covers access to records. The key AI-era requirement: every Alberta public body must have a privacy management program (s. 25), with a deadline of June 11, 2026. POPA also requires a public body to tell people if it intends to input their information into an automated system (s. 5(2)(d)), and to notify affected individuals, the Commissioner and the Minister of a breach that creates a real risk of significant harm (s. 10(2)). Personal information includes ratepayer records, staff data, applicant files, and bylaw complaint records, all of which municipal staff may enter into AI tools without realizing the risk.
Privacy management program (PMP)
Privacy & complianceA formal, documented set of policies, procedures, and controls governing how an organization handles personal information, required of Alberta public bodies under POPA and of BC public bodies under FOIPPA.
A PMP covers how personal information is collected, used, disclosed, retained, and disposed of. In Alberta it includes a designated privacy officer, staff training, procedures for privacy incidents, and policies for automated systems and, for some public bodies, AI systems. The POPA deadline for Alberta municipalities to have a PMP in place was June 11, 2026. An IT acceptable use policy is not a substitute for a PMP, even if it mentions AI or data.
Private LLM
AI & visibilityA large language model deployed entirely within an organization's own infrastructure rather than on a public cloud.
A private LLM can process municipal data without sending it to a third-party AI service, so citizen information, council documents, ratepayer correspondence, and financial data stay within systems the municipality controls. It can reduce the exposure created by staff entering sensitive information into public AI tools. SMC can explore private AI options with municipalities as a custom project.
Prompt engineering
AI & visibilityThe practice of designing AI inputs (prompts) that consistently produce accurate, useful outputs for a specific task or role.
Most AI tools are used at a fraction of their potential because staff rely on generic prompts and accept whatever output is produced. Prompt engineering teaches staff how to frame requests, provide context, specify constraints, and evaluate AI output critically, so the tool is genuinely useful rather than a source of risk. SMC delivers prompt engineering training for both municipal staff (focused on safe, compliant AI use with citizen data) and small business teams (focused on productivity and content quality).
Prompt injection
AI & visibilityA security attack that hides malicious instructions inside content an AI reads, tricking it into ignoring its rules or leaking data.
When an AI tool processes a web page, document, or email, an attacker can embed hidden text instructing the AI to disregard its guidelines, exfiltrate information, or take unintended actions. As organizations connect AI to their own data and tools, prompt injection becomes a real operational risk, not a theoretical one. Defenses include treating any AI that handles external content as untrusted, limiting what connected AI can access, and keeping a human in the loop on actions that send data or make changes.