Canada Boosts AI Sector with US$1.8 Billion Funding
Canada’s artificial intelligence (AI) sector is set to receive a significant boost with a funding package worth C$2.4 billion (approximately US$1.8 billion) unveiled by Prime Minister Justin Trudeau in Montreal during a pre-budget tour. The majority of the package, totaling C$2 billion, will focus on enhancing computational power and technology infrastructure to expedite the work of AI researchers, start-ups, and businesses. The upcoming budget, scheduled for April 16, will allocate additional funding to accelerate the integration of AI into sectors such as agriculture and healthcare.
Trudeau emphasized that the funds would unleash AI’s full potential, creating employment opportunities for Canadians, particularly the youth, while fostering productivity and strengthening the economy. The government plans to engage with businesses to establish an AI Compute Access Fund and a strategic plan to foster the sector’s growth in Canada. Additionally, $200 million will be designated to drive the adoption of AI in key industries like agriculture, healthcare, and clean technology.
To address potential risks associated with AI, the government will allocate $50 million towards establishing an AI safety institute and $5.1 million to the office of the AI and Data Commissioner for implementing the Artificial Intelligence and Data Act. The proposed legislation, Bill C-27, aims to amend privacy regulations and impose added responsibilities on high-impact AI systems.
While Canada’s investment in its AI sector is substantial, other governments are also intensifying efforts to bolster their AI economies. The United States plans to allocate over $3.3 billion to expand AI development across federal agencies and address regulatory frameworks concerning AI technology. Meanwhile, Saudi Arabia has expressed intentions to invest $40 billion in AI, potentially positioning the country as the largest AI investor globally.
With strategic funding initiatives and comprehensive regulations, Canada is poised to further cement its position in the competitive global AI landscape, driving innovation, economic growth, and societal advancement.
