Canada has allocated $1.76 billion (2.4 billion Canadian dollars) from its federal budget to enhance its artificial intelligence (AI) sector and maintain its competitive advantage in AI. The government has introduced a range of measures to invest in AI-related startups, medium-sized businesses, and research firms in order to secure Canada’s AI advantage. Canadian Prime Minister Justin Trudeau stated that the rapid progress of generative AI will unlock significant economic potential for the country, improving productivity and reducing repetitive tasks for workers.
The investment package includes $1.47 billion for the development of computing capabilities and other AI-related infrastructure through the AI Compute Access Fund. This fund will support leading AI researchers and startups in Canada. Additionally, $147 million will be dedicated to AI startups in the agriculture, clean technology, healthcare, and manufacturing industries. Furthermore, $73.5 million will be provided to small and medium-sized AI scale-up companies to enhance productivity.
Trudeau highlighted that AI has already leveraged advancements in drug discovery, energy efficiency, and housing innovation in Canada. The fund will also address the potential impact of AI on workers, allocating up to $36.8 million under the Sectoral Workforce Solutions Program to retrain and reskill employees across various industries. According to a recent report by consultancy firm CVL Economics, employees in the film and animation industries are at the highest risk of job loss due to generative AI.
In addition, $36.8 million will be utilized to establish the Canadian AI Safety Institute, which aims to promote the safe development and deployment of AI. Canada claims to have been the first country to introduce a national AI strategy with the Pan-Canadian Artificial Intelligence Strategy in 2017, focused on driving AI adoption through research and commercialization.
Canada’s AI market is currently valued at approximately $7.4 billion, according to Statistica, while the United States market stands at around $106 billion. As part of its AI strategy, Canada has reportedly made efforts to attract emerging AI firms from the European Union.
One of the leading AI startups in Canada is Tenstorrent, which partnered with South Korean manufacturing conglomerate Samsung in October to bring the next generation of AI chiplets to the market. Prior to this partnership, Tenstorrent had closed a $100-million funding round led by Samsung and automotive manufacturer Hyundai.
In conclusion, Canada is making significant investments to boost its AI sector, aiming to maintain its competitive edge and unlock the economic potential of generative AI. The country’s commitment to AI research, infrastructure, and workforce development will position it as a key player in the global AI landscape.