Ottawa AI firm tackles regulatory compliance gap for small businesses
Paradigm Forge builds vertical AI to help SMEs navigate Canada's complex rulebook—where standard chatbots fail.
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An Ottawa startup is solving a problem small businesses face every day: artificial intelligence is supposed to help them get ahead, but when it comes to regulatory compliance, AI tends to hallucinate.
Paradigm Forge, founded by CEO Thomas Conway, built what it calls a "vertical" AI system designed specifically for Canadian regulatory standards. Unlike horizontal AI models (the kind most businesses use), this system can't hallucinate, Conway said. Every response ties back to an actual regulation, paragraph, or citation.
"Most chatbots will make errors when helping businesses understand complex regulations," Conway explained. "We've found that hallucinations often happen in the regulatory space. AI is not accurate."
The company created systems for compliance across several regulated industries: environment, food safety, natural health products, medical devices, chemicals, and trade. For small and medium-sized enterprises with lean budgets, the tool addresses a real squeeze. "The big guys can afford to hire a team from a Big Four consulting firm," Conway said. "But SMEs in Canada often struggle with the regulatory..."
Sonia Parmar, vice-president of regulatory affairs at the Canadian Health Food Association (which represents 1,400 members in a highly regulated sector), said regulatory interpretation is the biggest headache for companies. "It's very difficult for companies to keep up with that kind of flux," she said.