Analysis

Canada’s New Artificial Intelligence Strategy

The government plans to establish a national artificial intelligence literacy program.
While the strategy focuses heavily on AI investment, it does not provide clear assessments regarding potential job losses.
One of the strategy’s most significant weaknesses concerns security and regulatory frameworks.

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The new National Artificial Intelligence Strategy announced by the Government of Canada presents a comprehensive roadmap outlining how the country intends to develop and utilize artificial intelligence technologies over the next decade. Announced by Prime Minister Mark Carney, the strategy aims not only to accelerate technological advancement but also to strengthen Canada’s economic competitiveness, retain highly skilled talent within the country, and achieve a more independent position in the field of artificial intelligence. Nevertheless, the strategy has also generated debate due to uncertainties surrounding critical issues such as AI safety, job displacement, and regulatory frameworks.[i]

One of the most notable aspects of the strategy is its emphasis on the concept of “technological sovereignty.” In recent years, political tensions with the United States of America and Canada’s dependence on foreign companies for critical digital infrastructure have made Ottawa increasingly aware of its technological vulnerabilities. The strategy document explicitly acknowledges that a significant portion of Canada’s sensitive data is stored abroad and that some critical AI infrastructures are not under Canadian ownership. Consequently, the government views the enhancement of national capabilities not only as an economic objective but also as a matter of strategic security.

Within this context, the Government of Canada plans to establish a large-scale public supercomputer that will be accessible to researchers and businesses. In addition, the strategy aims to support AI data centers operating within the country and significantly expand national computing capacity by 2030. This approach reflects a broader international trend in which governments increasingly regard digital infrastructure as an integral component of national security. Since the data-processing capacity required for advanced AI systems is largely controlled by a small number of global technology firms, many middle powers are seeking alternative models to strengthen their technological autonomy.

One of Canada’s most significant challenges in the field of artificial intelligence is its inability to retain highly qualified talent. Although the country is recognized as one of the world’s leading centers for AI research, a substantial portion of the experts it trains ultimately pursue their careers in the United States. The fact that many internationally renowned AI researchers work for American technology companies or sell their startups to U.S.-based firms highlights a long-standing “brain drain” issue within Canada.

To address this challenge, the strategy proposes expanding research scholarships, creating new academic chairs at universities, and developing accelerated residency pathways for highly skilled foreign professionals. Canada’s approach seeks not only to retain domestic talent but also to attract international experts amid intensifying global competition in artificial intelligence. In particular, recent uncertainties surrounding immigration policies in the United States may create significant opportunities for Canada to attract global talent.

The economic dimension of the strategy is equally noteworthy. The government plans to establish a CAD 500 million investment fund dedicated to Canadian AI companies.[ii] This model would also allow the state to acquire equity stakes in selected firms. As a result, the government aims to benefit directly from the economic returns generated by innovative enterprises supported through public funding. This approach illustrates the renewed prominence of state-supported development models within the technology sector.

The impact of artificial intelligence on the labor market emerges as one of the most controversial aspects of the strategy. According to the document, AI investments are expected to create approximately 250,000 new jobs.[iii]However, it does not provide estimates regarding the potential employment losses that automation and generative AI applications may cause across different sectors. This omission has prompted criticism that the government emphasizes the economic opportunities associated with AI while downplaying its potential costs.

Indeed, international studies suggest that artificial intelligence may have transformative effects on occupations involving routine and repetitive tasks. Workers employed in accounting, customer service, data processing, and certain administrative functions may be particularly vulnerable to automation. Conversely, new employment opportunities are expected to emerge in areas such as software development, data science, and advanced technology engineering. Therefore, evaluating AI’s overall impact on employment requires consideration not only of the jobs created but also of occupations displaced and industries transformed.

Another major objective of the strategy is to promote the broader adoption of artificial intelligence in everyday life. According to government data, only 12 percent of Canadian businesses utilized AI technologies during the 2024–2025 period. The Ottawa administration aims to increase this figure to 60 percent by 2034. To support this objective, financing programs have been developed for businesses, while dedicated funds have been established to encourage the use of AI tools within creative industries.[iv]

The healthcare sector has been identified as one of the strategy’s priority areas. Long waiting times and physician shortages have remained persistent challenges within Canada’s healthcare system. The government believes that artificial intelligence can reduce administrative burdens on healthcare professionals and accelerate diagnostic processes. To this end, CAD 200 million has been allocated to enhance the use of AI in healthcare services.[v]

At the same time, public attitudes toward artificial intelligence remain highly complex. Public opinion research cited in the strategy indicates that a significant proportion of Canadians are concerned about AI. Approximately half of the population views artificial intelligence as a potential threat to humanity, highlighting that technological transformation is not merely an economic issue but also a societal one. Accordingly, the government plans to establish a national AI literacy program. This initiative, which is expected to be implemented through libraries and educational institutions, aims to enable citizens to engage with artificial intelligence in a more informed and responsible manner.

However, one of the strategy’s most significant weaknesses lies in the areas of security and regulation. The government has announced plans to introduce new legislation aimed at strengthening child protection, consumer privacy, and online safety.[vi] Nevertheless, the strategy provides few details regarding the scope, implementation mechanisms, or timeline of these regulations. More comprehensive regulatory frameworks appear particularly necessary in addressing deepfakes, AI-enabled disinformation campaigns, and chatbot systems that may pose security risks.

In conclusion, Canada’s new Artificial Intelligence Strategy reflects the country’s ambition to secure a stronger position in the global technological race. The strategy presents comprehensive objectives related to technological sovereignty, economic growth, and talent retention. However, uncertainties regarding AI’s potential negative effects on employment, as well as unresolved issues surrounding security and regulation, are likely to constitute some of the most significant challenges facing the strategy in the future. The Canadian case demonstrates that in the age of artificial intelligence, governments are responsible not only for building technological capacity but also for managing the economic and societal consequences of this transformation.


[i] Yousif, Nadine. “What to Know About Canada’s New AI Strategy”, BBC News, https://www.bbc.com/news/articles/c4g7gv8l0xlo, (Access Date: 14.06.2026).

[ii] Ibid.

[iii] Ibid.

[iv] Ibid.

[v] Ibid.

[vi] Ibid.

Ali Caner İNCESU
Ali Caner İNCESU
Ali Caner İncesu graduated from Anadolu University Faculty of Business Administration in 2012. He continued his education with Cappadocia University Tourist Guidance associate degree program and graduated in 2017. In 2022, he successfully completed his master's degrees in International Relations at Hoca Ahmet Yesevi University and in Travel Management and Tourism Guidance at Ankara Hacı Bayram Veli University. In 2024, he graduated from the United States University of Maryland Global Campus (UMGC) Political Science undergraduate program. As of 2023, he continues his doctoral studies at Cappadocia University, Department of Political Science and International Relations. In 2022, Mr. İncesu worked as a special advisor at the Embassy of the Republic of Paraguay in Ankara. He is fluent in Spanish and English and is a sworn translator in English and Spanish. His research interests include Latin America, International Law and Tourism.

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