Canada Unveils C$2 Billion AI Strategy to Compete Globally and Retain Talent
Canada's government released a national artificial intelligence strategy Thursday that maps out technology adoption over the next decade, committing more than C$2 billion ($1.4 billion) to boost AI literacy and business adoption. Prime Minister Mark Carney said the technology is already reshaping how Canadians work, learn, and connect.
The strategy arrives as public opinion on AI remains divided. Polling shows 34% of Canadians view AI as beneficial for society, while 36% see it as harmful. Half regard it as a threat to humanity.
Sovereignty and Computing Infrastructure
Canada's strategy names protecting national sovereignty as a key objective, addressing concerns that Canadian companies store sensitive data in foreign jurisdictions and rely on infrastructure Ottawa does not own. Carney warned that "AI could be weaponised against us."
The government plans to build a public supercomputer for Canadian researchers and businesses, and support construction of large-scale AI data centres to serve domestic clients. The goal is significantly enhanced computing capacity by 2030.
Stopping the Brain Drain to the US
Canada has struggled to retain AI talent despite its highly educated workforce. Geoffrey Hinton, the Nobel Prize-winning researcher known as the "Godfather of AI," sold his company to Google. Ilya Sutskever co-founded OpenAI.
The strategy funds research fellowships and increases research chairs at Canadian universities focused on AI. It also offers accelerated entry and permanent residency pathways for highly skilled AI workers from abroad.
Ottawa is pledging C$500 million in investments to Canadian AI companies, positioning the government to take equity stakes. The strategy projects 250,000 jobs will be created through AI adoption across sectors but does not estimate potential job losses.
Scaling AI Across Business and Healthcare
Only 12% of Canadian businesses used AI between mid-2024 and mid-2025. The government targets 60% adoption by 2034, allocating C$500 million in financing to help businesses integrate AI tools and C$50 million for creators.
Healthcare receives particular focus. The government dedicates C$200 million to improving health outcomes through AI, including reducing administrative burden on physicians and addressing long emergency room wait times. Carney noted that nearly three-quarters of EU countries already use AI-assisted diagnostics for medical imaging and disease detection.
Building Public AI Literacy
Canada ranks low among nations on AI training and literacy. The government attributes this partly to lack of public understanding, stating: "For Canadians to benefit from AI, they must first learn to use it."
A national AI literacy initiative will offer entry-level training to all Canadians through partnerships with public libraries.
Safety Measures Lack Detail
Ottawa promised new laws to protect consumer privacy and children's safety but offered no timeline or specifics. The government also pledged to modernize online safety laws to address AI risks.
Carney acknowledged Canada must confront risks including "deepfakes, unsafe chat bots and AI-generated disinformation." The commitment follows a February mass shooting in Tumbler Ridge, British Columbia, where the suspect used ChatGPT to discuss gun violence months before the attack. OpenAI later apologized for not alerting law enforcement.
Conservative MP Melissa Lantsman criticized the vague safety provisions. "The safety and security that was promised in this is nowhere to be found in the document, certainly no details," she told reporters.
Your membership also unlocks:
