Canada is set to enhance its artificial intelligence (AI) sector with a significant financial injection, as announced by Prime Minister Justin Trudeau.

The government has unveiled a comprehensive C$2.4 billion ($1.8 billion) package aimed at advancing AI capabilities within the country. The bulk of this investment, C$2 billion, is earmarked for "computing capabilities and technological infrastructure" to support AI researchers, startups, and firms in accelerating their work. This initiative is part of a broader strategy to leverage AI for economic growth and job creation, particularly for the youth.

Trudeau emphasized the potential of AI to increase productivity and foster economic expansion, stating that the funds "will help harness the full potential of AI so Canadians, and especially young Canadians, can get good-paying jobs while raising our productivity, and growing our economy."

The announcement was made in Montreal, a city recognized as an AI hub due to its expertise in fundamental research and the presence of notable AI researcher Yoshua Bengio.

Despite these advancements, Canada has not yet implemented a law specifically regulating AI. The Artificial Intelligence and Data Act, introduced in 2022, is still under parliamentary review. This legislative gap highlights the ongoing efforts to balance innovation with ethical and security considerations in the rapidly evolving AI landscape.

The AI sector in Canada is vibrant, with over 140,000 professionals active in the field as of last year. AI-related ventures accounted for almost 30% of all venture capital activity in Canada in 2022, amounting to approximately C$8.6 billion. This underscores the sector's significant contribution to the country's innovation ecosystem and economic vitality.

In response to the growing importance of AI and other key technology sectors, Industry Minister Francois-Philippe Champagne announced that the government will soon require non-Canadian firms to provide advance notice of investments in these areas. This measure aims to allow the government to assess the national security implications of such investments, particularly in light of concerns over foreign, notably Chinese, influence in Canadian technology enterprises.

"The funds will help harness the full potential of AI so Canadians, and especially young Canadians, can get good-paying jobs while raising our productivity, and growing our economy, "Justin Trudeau, Prime Minister of Canada said