Canada unveils new AI strategy, targets 250,000 jobs and 3% GDP boost by 2031

Canada unveiled a new artificial intelligence strategy on Thursday, outlining plans to create 250,000 jobs by 2031 and launch a new C$500 million technology fund to support homegrown AI companies.

The strategy, dubbed "AI for All", was announced by Prime Minister Mark Carney in Toronto. It comes as Canadian companies increasingly invest in AI technologies that can process information more efficiently and help address the country's long-standing productivity challenges.

Key Takeaways from Canada's New AI Strategy

The government expects the initiative to boost Canada's gross domestic product by 3 percent, unlocking nearly C$200 billion in economic value as the commercialisation and adoption of AI across key sectors improve labour productivity.

Canada's digital sector currently employs around 800,000 workers and contributes more than C$140 billion to the country's GDP. Of these, approximately 150,000 jobs are directly linked to artificial intelligence.

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To strengthen the domestic AI ecosystem and narrow the funding gap between Canadian AI firms and larger U.S. competitors, the government will establish a C$500 million Canadian Tech Growth Fund. The fund will provide capital to promising AI companies and allow the federal government to take equity stakes in select firms.

In addition, a separate C$500 million programme will be deployed through the Business Development Bank of Canada (BDC) to help small and medium-sized enterprises gain access to AI tools and technologies, supporting broader adoption of AI across the economy.

On the regulatory front, Canada has reaffirmed its commitment to introducing new consumer privacy legislation aimed at better protecting children's online information and activities, curbing the spread of deepfakes, and giving consumers greater control over their personal data.

The government also plans to invest C$50 million in monitoring emerging AI-related risks and conducting transparent evaluations of AI models. However, officials have not yet provided a timeline for implementing these proposed regulations.

To build public trust in artificial intelligence, the Canadian government plans to modernise its legislative and regulatory frameworks for the digital age, with a strong emphasis on safety, transparency, and accountability. The strategy includes strengthening protections for Canadians' personal information and addressing emerging risks such as deepfakes, surveillance-based pricing practices, and other forms of AI-enabled harm.

In addition, the government aims to improve transparency around AI systems, ensuring Canadians are better equipped to use the technology safely and responsibly. Beyond domestic measures, Canada plans to deepen cooperation with trusted international partners in key areas such as AI research, talent development, computing infrastructure, and public-sector procurement. Through the newly established Sovereign Technology Alliance, the government also hopes to attract greater foreign investment, promote Canadian expertise on the global stage, and help domestic technology firms access new international markets.