Canada to Invest $1.8 Billion in Artificial Intelligence Sector to Boost Economy and Create Jobs

Canada to Invest $1.8 Billion in Artificial Intelligence Sector to Boost Economy and Create Jobs

Canada Prime Minister Justin Trudeau has unveiled a $1.8 billion investment package aimed at strengthening Canada's artificial intelligence sector. The move comes as part of the upcoming 2024 federal budget and aims to create jobs, boost economic growth, and ensure Canada remains competitive in the AI race.

The centerpiece of the investment is a $1.5 billion allocation for computing capabilities and technological infrastructure to support the work of AI researchers, startups, and firms across the country. This strategic funding is expected to attract global AI investment, foster talent development, and enable Canadian businesses to compete effectively on the world stage.

In addition to infrastructure, the package includes $148 million to accelerate AI adoption in critical sectors such as agriculture, clean technology, healthcare, and manufacturing. The government also plans to invest $74 million in assisting small and medium-sized businesses in scaling up and increasing productivity through the development and deployment of AI solutions.

Recognizing the potential impact of AI on the workforce, the government has earmarked $37 million for skills training programs to support workers in sectors that may be disrupted by the technology. Furthermore, $37 million will be dedicated to the creation of a new Canadian AI Safety Institute, which will focus on the safe development and deployment of AI systems, particularly those with significant implications for health, safety, and human rights.

The AI sector has emerged as a significant job creator and driver of productivity, innovation, and economic growth in Canada. In 2022-23, the country witnessed a 29% increase in actively engaged AI professionals, reaching over 140,000 individuals. Canada also ranks first globally for year-over-year growth of women in AI and first in the G7 for year-over-year growth of AI talent.

Despite these impressive statistics, concerns have been raised about the need for a comprehensive regulatory framework to govern the development and use of AI. The proposed Artificial Intelligence and Data Act, introduced in Parliament in June 2022, aims to address these concerns by promoting the responsible design, development, and use of AI systems in Canada's private sector.

As Canada continues to navigate the challenges and opportunities presented by AI, the government's substantial investment package demonstrates a commitment to securing the country's competitive edge in this rapidly evolving field. By fostering innovation, supporting talent development, and prioritizing the responsible adoption of AI, Canada is well-positioned to reap the economic and social benefits of this transformative technology.

FACT SHEET: President Biden’s 2025 Budget Invests in Science and Technology to Power American Innovation, Expand Frontiers of What’s Possible | OSTP | The White House
President Biden’s Budget makes strategic investments in science and technology (S&T) to ensure that America continues to lead the world in innovation and that S&T breakthroughs benefit all of America. The Budget includes $202 billion for federal research and development (R&D) to tackle the great challenges of our time and achieve our nation’s great aspirations—promoting…

The US has been a leader in AI research and development for years, and the president's 2025 budget proposal includes a staggering $3 billion for federal research, development and use of artificial intelligence. However, the race for AI dominance is indeed global with many countries recognizing its strategic importance and investing heavily in AI.

Chris McKay is the founder and chief editor of Maginative. His thought leadership in AI literacy and strategic AI adoption has been recognized by top academic institutions, media, and global brands.

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