UPDATE — JULY 2025: Canada’s $2.4 billion AI investment plan, first announced in April 2024, still anchors the country’s AI strategy. Since then, the federal government has not announced major new AI budget commitments or legislation. Canada remains a global leader in AI research, but officials admit the country has been slower to adopt AI across different industries.
Regulators are still developing the Artificial Intelligence and Data Act (AIDA), with key provisions scheduled to take effect on August 2, 2025. Officials will also release a General-Purpose AI Code of Practice. At the same time, the government is advancing its AI Strategy for the Federal Public Service (2025–2027). That plan emphasizes ethical, transparent, and human-centered use of AI in government.
In short, Canada’s AI policy today reflects steady follow-through and strategy execution rather than new funding. The $2.4 billion package and related initiatives from 2024 continue to shape national AI governance.
ORIGINAL NEWS STORY:
Canada Unveils Investment Plan to Bolster AI Sector and Create Jobs
Canada is doubling down on its commitment to AI innovation. The $2.4 billion plan aims to strengthen the nation’s AI sector and create high-paying jobs. On April 7, Prime Minister Justin Trudeau announced the comprehensive package, part of the upcoming Budget 2024, which underscores Canada’s determination to maintain its leadership in AI technology.
Recognizing the transformative potential of AI to revolutionize the economy and improve citizens’ lives, especially younger Canadians, the government is keen on harnessing every opportunity in the AI-driven future. With Canada already at the forefront of AI advancements, the investment plan seeks to ensure that the nation remains a global leader in innovation and technology.
Upgrading Canada’s Technological Infrastructure
The cornerstone of the investment is a $2 billion allocation to build and provide access to cutting-edge computing capabilities and technological infrastructure for Canada’s renowned AI researchers, start-ups, and scale-ups. This investment underscores the government’s commitment to building a robust AI ecosystem. It aims to attract global investment, nurture top talent, and help Canadian businesses compete internationally.
Additionally, the government is earmarking $200 million in support through Canada’s Regional Development Agencies to accelerate AI adoption in critical sectors such as agriculture, clean technology, healthcare, and manufacturing. This funding aims to bolster AI start-ups, facilitate the development of innovative AI applications, and drive economic growth across various industries.
Recognizing the potential disruption AI may bring to certain sectors, the government is allocating $100 million to the NRC IRAP AI Assist Program. This initiative will aid small and medium-sized businesses in scaling up and increasing productivity by adopting new AI solutions, thus positioning them to thrive in the AI-driven economy.
Supporting Workers and Citizens
Moreover, the government is taking proactive steps to support workers who may be affected by AI disruption by allocating $50 million to the Sectoral Workforce Solutions Program. This funding will enable the implementation of skills training initiatives to prepare workers in potentially impacted sectors for the changes brought about by AI technology.
In line with its commitment to responsible AI development, Canada is establishing a new Canadian AI Safety Institute with a $50 million funding injection. This institute will play a crucial role in advancing the safe development and deployment of AI systems, mitigating risks posed by advanced AI technologies, and safeguarding the interests of Canadians.
Furthermore, the government will allocate $5.1 million to strengthen enforcement of the proposed Artificial Intelligence and Data Act.
Conclusion
The government’s comprehensive investment plan underscores Canada’s strong foundation in AI, its commitment to responsible AI development, and its determination to capitalize on AI’s potential to drive economic growth and create high-quality jobs for Canadians across the country. With these measures in place, Canada is poised to maintain its position as a global leader in AI innovation and governance, ensuring that AI benefits all Canadians and future generations.
Need Help?
If you’re wondering how Canada’s investments, or any other government’s investments, regulations or bills around the world, could impact you, don’t hesitate to reach out to BABL AI. Their Audit Experts are ready to provide valuable assistance while answering your questions and concerns.
