Canada launches AI strategy to create 250,000 jobs and boost GDP
Canada’s AI for All strategy commits C$1 billion to technology growth and SME adoption, aiming to create 250,000 jobs and lift GDP by 3% by 2031.
- The "AI for All" strategy aims to create 250,000 jobs by 2031 and increase Canada's GDP by approximately 3% by accelerating AI adoption across the economy.
- A new C$500 million Canadian Tech Growth Fund will be established to help domestic AI companies scale up and compete with major US technology firms.
- An additional C$500 million will be provided through the Business Development Bank of Canada to help small and medium-sized enterprises (SMEs) adopt AI tools and improve competitiveness.
- The government estimates the strategy will unlock nearly C$200 billion in long-term economic value by improving labour efficiency and supporting commercial development.
Canada has launched a new artificial intelligence strategy, “AI for All”, aimed at turning AI into a key driver of economic growth, job creation and productivity.
The plan is expected to help create 250,000 jobs by 2031 and increase Canada’s gross domestic product by around 3%, as Ottawa seeks to accelerate the use of AI across major sectors of the economy.
Prime Minister Mark Carney unveiled the strategy in Toronto on Thursday (June 4), as global competition in artificial intelligence intensifies and major businesses pour investment into tools designed to process information faster and improve workforce productivity.
Canada has struggled with low productivity growth in recent years, making AI adoption a central part of the government’s effort to strengthen the country’s economic competitiveness.
The government estimates that wider use of AI in key sectors could improve labour efficiency, support commercial development and unlock nearly C$200 billion in long-term economic value.
Canada’s digital economy currently employs about 800,000 people and contributes more than C$140 billion to GDP each year. Of that workforce, around 150,000 jobs are directly linked to the AI industry.
A central measure under the new strategy is the creation of the C$500 million Canadian Tech Growth Fund, designed to help domestic AI companies compete more effectively with major US technology firms.
The fund is intended to address a shortage of scale-up capital among Canadian start-ups and technology companies. It will also allow the federal government to take equity stakes in promising AI firms, helping keep important technology, talent and intellectual property anchored in Canada.
Ottawa will also provide another C$500 million through the Business Development Bank of Canada to help small and medium-sized enterprises access and adopt AI tools. The government views this as essential to improving business competitiveness.
Many SMEs still face barriers such as high costs, limited technical expertise and uneven access to AI technology. The new support is intended to spread the benefits of AI more widely across the economy.
On regulation, the government reaffirmed plans to introduce new consumer privacy legislation aimed at strengthening digital safety standards. The proposed law would focus on protecting children’s personal information and online activity, tackling AI-generated deepfakes, and giving consumers greater control over their personal data.
Ottawa will also invest an additional C$50 million to monitor emerging risks linked to AI development and carry out transparent assessments of the performance and safety of AI models.
However, the government has not yet set out a clear timetable for implementing the proposed legislation and regulatory measures, leaving businesses and investors waiting for further details.
Analysts view the “AI for All” strategy as part of Canada’s broader effort to preserve its position in the global technology race, as competition from the United States, China and Europe accelerates. The plan also signals Ottawa’s ambition to make AI one of the main engines of economic growth over the next decade.
