Canada Artificial Intelligence Strategy and Opportunities
The proliferation of digital technologies has led to a surge in the demand for Artificial Intelligence (AI) solutions across various sectors in Canada. U.S. companies with expertise in responsible AI solutions can partner with Canadian businesses to fill this growing demand.
Canada is a world leader in the field of AI and has played a key role in the development of AI technologies since the 1970s. Canada was the first country globally to create a national strategy for AI, releasing the Pan-Canadian AI strategy in 2017. In 2022, the Government of Canada proposed the Artificial Intelligence and Data Act (AIDA) as part of Bill C-27, the Digital Charter and Implementation Act, to promote the responsible use of AI. The bill is currently in the Parliamentary process to become law. It outlines regulations and guidelines for AI development and deployment, emphasizing transparency, accountability, and ethical considerations.
Canada has established itself as a prominent global figure in promoting ethical AI practices and actively engages with its international partners, notably the G7 and the Organization for Economic Cooperation and Development (OECD), to promote cohesive and sensible AI regulations. Canada was actively involved in the launch of the Global Partnership on Artificial Intelligence (GPAI), which signifies Canada’s commitment to global cooperation on responsible AI development and deployment. U.S. companies can leverage Canada’s position in GPAI to collaborate on cutting-edge AI solutions that meet ethical and regulatory standards, gaining a competitive advantage in the global market.
Canada’s AI landscape is comprised of over 670 AI startups and 30 generative AI companies and is experiencing significant growth with the market projected to reach US$4.13 B in 2024. This is driven by government support, research initiatives, and a thriving technology sector. Leading national AI research institutions such as Amii, Mila, and the Vector Institute, alongside the Canadian Institute for Advanced Research (CIFAR), a Canadian-based global research organization, promote Canadian AI research and development. The government’s commitment to the AI sector is evident through initiatives such as the Pan-Canadian AI strategy at CIFAR, and the Global Innovation Clusters program, both launched in 2017. Significant investment has been poured into Canadian AI and generative AI enterprises, with the government investing over $2 billion since 2017 into research and development. Canada ranks third in per capita VC investments among G7 nations, fostering a dynamic environment for AI companies. In April 2024, Prime Minister Trudeau announced a $2.4 B set of initiatives from the upcoming Budget 2024 to secure Canada’s AI leadership.
Canada possesses a strong talent pool, ranking first in the G7 for growth in AI talent concentration, and is actively adopting AI across various sectors. This creates a significant demand for AI solutions, particularly in areas like healthcare, finance, and manufacturing. U.S. companies with expertise in these domains can cater to this growing need.
For more information about Canada’s AI landscape, and how the U.S. Commercial Service in Canada assists U.S. exporters, visit www.trade.gov/canada or contact Commercial Specialist Tracey.Ford@trade.gov