Ottawa to Spend $2.3 Billion on AI Strategy

Why It Matters

The strategy could reshape Canada’s tech landscape, driving significant job growth and boosting global competitiveness, provided regulatory clarity keeps pace with rapid AI development.

Key Takeaways

• Ottawa pledges $2.3 bn to accelerate AI adoption and job creation
• Goal: 90,000 AI‑related jobs, 250,000 additional roles by 2031
• Raise AI use in firms from 12% to 60% by 2034
• Plan includes a world‑leading supercomputer and data‑sovereignty safeguards
• Experts warn implementation speed and regulatory clarity remain critical

Summary

The Canadian government unveiled a $2.3 billion AI strategy aimed at positioning the country as a global leader in artificial intelligence. The plan promises to create 90,000 AI‑related positions and generate an additional 250,000 jobs through broader AI adoption by 2031, while targeting a jump in AI usage among businesses from the current 12% to 60% by 2034. A centerpiece of the initiative is the construction of a world‑class supercomputer to bolster sovereign digital infrastructure, alongside measures to protect data sovereignty and improve AI literacy across the economy. Key data points show AI adoption in Canada rising roughly 6.5% annually, with recent surveys indicating usage has already climbed to 19%—far above the outdated 12% figure cited earlier. The government’s aggressive targets reflect a belief that AI can drive productivity gains and offset historical job‑displacement fears associated with new technologies. However, experts caution that the promised job creation hinges on effective training programs and smooth transitions for workers whose roles may be automated. Associate Director Rosalie Wunch of the C.D. Howe Institute praised the strategy’s focus on financing gaps for SMEs and privacy safeguards, but warned that “the devil will be in the details.” She highlighted the urgency of clear, adaptable regulations to prevent businesses from hesitating due to regulatory uncertainty, especially concerning youth data protection and evolving AI risks. If executed swiftly, the plan could narrow Canada’s lag behind peer economies, attract private investment, and cement a competitive edge in the emerging AI market. Conversely, delays or vague policy guidance could stall adoption, limiting the economic upside and leaving Canadian firms vulnerable to faster‑moving rivals.

Original Description

Rosalie Wyonch, associate director of research at C.D. Howe Institute, joins BNN Bloomberg to discuss how AI affects Canada's labour market.

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