Canada is home to top universities that are producing talented graduates in the fields of technology and artificial intelligence (AI). The country maintains a strong AI ecosystem – consisting of high potential start-ups, academics, research centres, and superclusters – that has continued government support and funding.
The Canadian government launched its national AI strategy in 2017. The Pan-Canadian Artificial Intelligence (AI) Strategy is a five-year plan designed to strengthen Canada’s AI leadership to ensure the country has one of the world’s most robust national AI systems by 2030. The government announced the second phase of the initiative in 2021 and partnered with the Canadian Institute for Advanced Research (CIFAR), the Standards Council of Canada (SCC), and Canada’s Global Innovation Clusters to implement its key measures. This second phase provides $443.8 million in funding over 10 years (starting in 2021–2022) and prioritizes commercializing and adopting AI technology, increasing computing capacity and infrastructure, developing AI standards, and advancing AI for health, energy, and the environment. The Strategy also drives the research, trains the next generation of AI leaders, and fosters collaboration for innovation, commercialization, and responsible AI adoption. Three national AI institutes – Amii in Edmonton, Mila in Montréal, and the Vector Institute in Toronto – are the central hubs of Canada’s thriving AI ecosystem.
CIFAR has developed key strategic priorities and sectors where AI is advancing in Canada:
In 2023 Deloitte Canada published an impact and opportunities study in key areas to provide a snapshot of the state of Canada’s AI sector and how the Pan-Canadian AI Strategy created significant social and economic benefits for Canada. It found an increase in Canada’s AI talent pool by 38% annually over the last five years, and significant funding for AI research and development ($2.57 billion in 2022-23), leading to a 57% increase in AI patent filings by Canadian inventors. Canadian organizations are actively engaging in AI, implementing AI projects and exploratory pilots and aligning with global trends. However, the study also found a majority of Canadian companies expressing concerns about ethical risks associated with AI, particularly the potential for bias and low-quality results.
Investors also remain attracted to Canada’s dynamic AI ecosystem. While venture capital funding worldwide fell significantly in 2022-23, it continued flowing to Canadian AI companies, allowing them to continue their research, and establish and grow their businesses. Canada maintained its growth trajectory with 46 new AI companies founded in 2022-23 and matching the previous year’s numbers.
In Canada, AI development and applications fall under both federal and provincial jurisdiction. In June 2022, the Government of Canada tabled the Artificial Intelligence and Data Act (AIDA) as part of Bill C-27, the Digital Charter Implementation Act, 2022.
AIDA’s two stated proposed purposes are:
- To regulate international and interprovincial trade and commerce in AI systems by establishing common requirements, applicable across Canada, for the design, development, and use of AI systems, and
- To prohibit conduct that may result in serious harm to individuals or their interests.
AIDA represents an important milestone in implementing the Digital Charter, ensuring that Canadians can trust the digital technologies that they use every day. An AIDA companion document (released by the government last March) provides additional information about how high-impact AI systems are being used, ensuring the public understands the capabilities, limitations, and potential impacts of the systems. AIDA’s provisions will come into force no sooner than 2025.
The regulatory landscape for AI is moving very quickly and companies designing, developing, or making AI systems available for use in Canada should expect transparency and risk evaluation processes to be part of their AI risk management programs. This will ensure they’re compliant with any future regulations and can demonstrate accountability for their AI use.
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