Canada has introduced a new artificial intelligence (AI) strategy aimed at increasing its gross domestic product (GDP) amid a broader technology push and rising inflation.
Canadian Prime Minister Mark Carney announced the strategy on Thursday, projecting the creation of 250,000 jobs by 2031. He also unveiled a new C$500 million ($360.05 million) tech fund designed to support domestic AI companies.
Dubbed “AI for All,” the initiative signifies investments by the country’s largest companies in developing tools designed to quickly analyze information and boost Canada’s historically low productivity.
The government expects this approach to raise the national GDP by 3 percent—roughly C$200 billion—as AI commercialization and adoption in vital sectors enhance overall labor efficiency.
To execute this, Canada will establish the C$500 million Canadian Tech Growth Fund to address the capital disparity between domestic AI firms and U.S. tech giants. The initiative includes the possibility that the federal government may acquire equity stakes in these emerging companies.
Currently, Canada’s digital sector employs approximately 800,000 people and contributes over C$140 billion to the GDP, with 150,000 of those jobs directly linked to the AI sector.
Additionally, the government reiterated plans to introduce new consumer privacy laws to protect children’s data, combat deepfakes, and give citizens more control over their personal information.
Authorities will also allocate C$50 million to monitor emerging AI risks and carry out transparent assessments of new AI models. However, no specific timeline for implementing these regulations has been provided yet.