Canada to invest $300M to boost AI ecosystem and support SMEs

The Canadian government has announced the launch of two programs to grow Canada’s AI ecosystem by supporting the development of new generative AI applications and enabling AI adoption among SMEs to increase productivity. These programs are part of a $2.4 billion package of AI-focused initiatives announced in Budget 2024 to accelerate job growth, boost productivity and ensure AI is used responsibly. The announcement was made by the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, on behalf of the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry.

According to a press statement from Innovation, Science and Economic Development Canada, first, the Regional Artificial Intelligence Initiative (RAII) will invest $200 million to help bring new AI technologies to market and help accelerate AI adoption by SMEs and sectors across the country. This program will be delivered through Canada’s regional development agencies over the next five years. Second, the AI Assist Program is investing $100 million to help innovative Canadian SMEs that are building or actively incorporating generative AI and deep learning solutions into their core products and services.

On behalf of Minister Champagne, Deputy Prime Minister Freeland thanked all the businesses, researchers and AI innovators who responded to the public consultation on artificial intelligence computing infrastructure, which closed in September. The consultations engaged more than 1,000 Canadians and Canadian businesses both online and in person through surveys, roundtables and meetings. This feedback is informing the design and implementation of two initiatives: the new AI Compute Access Fund and the Canadian AI Sovereign Compute Strategy.

“Small and medium-sized businesses are the backbone of Canada’s AI ecosystem. The investments announced today are designed to serve as a catalyst for quicker AI adoption by this vital section of the economy, be a source of significant Canadian innovation, and enhance productivity and exports. The government will build on this with Canada’s first sovereign compute strategy that will reflect the voices of Canadians from coast to coast to coast,” said the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry.