UPDATE — JULY 2025: Canada’s $2.4 billion AI investment plan, first announced in April 2024, continues to serve as the foundation for the country’s AI strategy. No new major federal AI budget commitments or legislative announcements have been made since. While Canada remains a global leader in AI research, officials acknowledge the country’s slower pace in cross-sector adoption.
The Artificial Intelligence and Data Act (AIDA) is still undergoing regulatory development, with key implementation provisions expected to take effect on August 2, 2025. A General-Purpose AI Code of Practice is also forthcoming. Meanwhile, the Canadian government is advancing its AI Strategy for the Federal Public Service (2025–2027), which emphasizes ethical, transparent, and human-centered use of AI in government operations.
In short, Canada’s current AI policy landscape is defined more by regulatory follow-through and internal strategy execution than by new funding announcements. The $2.4 billion investment package and broader initiatives introduced in 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 with a bold $2.4 billion investment plan aimed at strengthening the nation’s AI sector and creating 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 substantial investment underscores the government’s commitment to fostering a robust AI ecosystem that attracts global investment, nurtures top talent, and enables Canadian businesses to compete on the international stage.
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, $5.1 million will be allocated to strengthen enforcement of the proposed Artificial Intelligence and Data Act, aimed at guiding responsible AI innovation in the private sector while protecting citizens from potential AI risks.
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.
