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Artificial intelligence technologies are having a significant impact on the Canadian economy and are being used in a variety of applications, such as health, food production, and reducing energy consumption. Canadian researchers and businesses have played a key role in shaping the field of artificial intelligence.
The proposed Artificial Intelligence and Data Act (AIDA), as part of the Digital Constitution Implementation Act of 2022, aims to ensure that AI systems used in Canada are safe and non-discriminatory, and to hold companies accountable for the impact of their AI technology on the lives of citizens. AIDA will introduce a series of new requirements designed to ensure the safety and fairness of high-impact AI systems at every stage:
During the design phase, companies must identify and correct potential risks associated with harm and bias, while also maintaining relevant records.
During the development phase, companies must assess the intended applications and limitations of their AI systems and ensure that these aspects are clearly understood by users.
During the deployment phase, enterprises must implement appropriate risk mitigation strategies and ensure continuous monitoring of the system.
This approach aims to establish a flexible policy framework that tailors safety obligations to the specific characteristics and risk levels of AI systems; the greater the risks associated with AI systems, the more corresponding obligations will be imposed on companies.
The government participates in international discussions on AI regulation and works with global partners to ensure responsible AI development and use. Canada is investing in AI adoption through initiatives such as the Pan-Canadian AI Strategy, which focuses on commercialization, standards development, talent and research, bringing together partners across the country to advance AI technologies. The strategy includes the establishment of national AI institutes in Edmonton, Montreal and Toronto to help translate AI research into commercial applications. In addition, Canada’s Global Innovation Clusters promote the adoption of Canadian AI technologies in key industries.
The Standards Council of Canada supports the development of standards related to artificial intelligence. In addition, the Canadian Institute for Advanced Research (CIFAR) strengthens academic research talent and maintains research centers. Compute, promoted by the Canadian Digital Research Alliance, provides dedicated computing power to artificial intelligence researchers across the country.
Canada’s approach to AI development not only fosters innovation, but also ensures that AI systems used in the country prioritize the best interests of citizens.
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Canada got a head start on AI investments in 2017 as one of the first countries to establish a national AI strategy.
The Canadian government has been a major catalyst for investment in AI and has made R&D a key focus of its strategy by attracting and developing the best global talent.
To this end, the Pan-Canada Artificial Intelligence Strategy (PCAIS) launched its first phase in 2017. The strategy is a $125 million investment implemented through CIFAR, with the primary goal of establishing a research, innovation and training centre at the National Institute for Artificial Intelligence.
The second phase of PCAIS was announced in 2021, with a further investment of $443 million. In 2023, the R3AI initiative was announced through Canada’s first Research Excellence Fund (CFREF), which aims to implement new responsible AI design and adoption strategies in areas of importance to Canada.
With regard to private investment, the PCAIS lays the foundation for leveraging government initiatives to spur private sector growth. While Canada may not be a leader in absolute numbers, it provides an example of how strategic government investments in emerging technologies such as artificial intelligence can accelerate private sector activity and boost economic growth.
As of 2021, Canada has more than 1,200 AI startups, which generated $1.5 billion in venture capital funding that year. Toronto has the densest cluster of AI startups in the world, with 273 AI companies headquartered in the city in 2019.
The government is also encouraging public-private partnerships through business-led superclusters such as Scale AI in Quebec, which is using artificial intelligence to improve supply chains.
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