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Economy

Federal Government Launches Consultations on $2 Billion AI Investment

The federal government has announced consultations to determine how to spend the $2 billion in artificial intelligence (AI) investments outlined in April’s budget. This significant investment aims to scale up Canadian-owned infrastructure for researchers and AI developers, addressing the need for large computing power required by this technology.

The Need for Domestic Computing Capacity

A statement from the government highlighted the importance of domestic computing capacity, stating that "insufficient domestic computing capacity exposes Canadian researchers and firms to fragile international supply chains for AI computing power, posing challenges in terms of cost, security of access, and the privacy and security of Canadian data." Many inputs required for AI are scarce and expensive, leading many AI startups to rely on cloud services provided by large tech giants such as Alphabet Inc., Microsoft Corp., and Amazon.com Inc.

Consultations and Partnerships

The consultations will take place from June 26 to September 6 and will include researchers and businesses within the field. The Ministry of Innovation, Science and Economic Development will reach out to key partners, including:

  • Canadian Institute for Advanced Research
  • Vector Institute
  • Alberta Machine Intelligence Institute
  • Québec Artificial Intelligence Institute
  • Digital Research Alliance of Canada

When the consultations are completed, the ministry will publish a What We Heard Report that will inform how to best implement the funding. This consultation aims to harness Canadian leadership and ensure the country maintains its advantage in AI.

Canada’s AI Strategy

In 2017, Canada became one of the first countries to launch a national AI strategy. Despite this, the country lags behind other G7 countries in computing power. Canadian businesses also lag in AI adoption, with only one in 10 businesses currently using or planning to use generative AI.

Research and Innovation

Canada is home to 10% of the world’s top-tier AI researchers, according to the Organization for Economic Co-operation and Development. The number of AI patents filed by Canadian inventors increased by 57% in 2022-23 compared to the previous year.

Conclusion

The federal government’s consultations on $2 billion in AI investments aim to strengthen and secure Canada’s AI advantage and domestic access to computing power. By engaging with researchers, businesses, and key partners, the ministry seeks to ensure that Canada continues to lead in AI innovation and adoption.

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