Canada has pledged $1.76 billion (2.4 billion Canadian dollars) from its federal budget to bolster its artificial intelligence sector and uphold the nation’s “competitive edge” in AI.
The government has introduced a comprehensive set of measures, including investments in AI-related startups, medium-sized enterprises, and research firms, aimed at securing Canada’s leadership in AI.
In an April 7 statement, Prime Minister Justin Trudeau emphasised the potential of generative AI to unlock substantial economic opportunities for Canada, enhancing productivity and reducing the time spent on repetitive tasks by workers.
In Montreal, PM Justin Trudeau announces a $2.4-billion package from the upcoming federal budget to build capacity in artificial intelligence.#cdnpoli pic.twitter.com/AbNlOrX2kd
— CPAC (@CPAC_TV) April 7, 2024
The initiative involves investing $1.47 billion in enhancing computing capabilities and other AI-related infrastructure through the establishment of Canada’s new AI Compute Access Fund. This fund will support leading AI researchers and startups in the country.
Additionally, $147 million will be allocated to AI startups in key sectors such as agriculture, clean technology, healthcare, and manufacturing. Another $73.5 million will be directed to small and medium-sized AI scale-up companies to bolster productivity.
Trudeau highlighted the transformative impact of AI in various domains such as drug discovery, energy efficiency, and housing innovation, underscoring its role in driving economic growth and innovation.
To address potential job displacement caused by AI advancements, up to $36.8 million will be allocated to Canada’s Sectoral Workforce Solutions Program, aimed at retraining and upskilling workers across different industries.
According to a recent report from consultancy firm CVL Economics, employees in the film and animation industries face the highest risk of job displacement due to generative AI.
Furthermore, $36.8 million will be utilised to establish the Canadian AI Safety Institute, aimed at promoting the safe development and deployment of AI technologies.
Canada has been proactive in its AI strategy, introducing the Pan-Canadian Artificial Intelligence Strategy in 2017 to drive AI adoption through research and commercialization.
Currently valued at approximately $7.4 billion, Canada’s AI market is significantly smaller than the United States’ $106 billion market. As part of its AI strategy, Canada has reportedly sought to attract emerging AI firms from the European Union.
Tenstorrent, one of Canada’s leading AI startups, has collaborated with South Korean conglomerate Samsung to advance AI chiplet technology. The company recently secured a $100 million funding round led by Samsung and Hyundai.