NG Solution Team
Technology

Has the federal government spent over $800M on AI contracts in 3 years?

Ottawa has allocated over $800 million to artificial intelligence technology since 2023, according to federal government data. This expenditure includes a $350 million contract with Dayforce to replace the problematic Phoenix pay system and a $240 million investment in AI company Cohere. The spending also covers a wide range of entries, from small amounts for ChatGPT subscriptions to multimillion-dollar agreements with various companies. Conservative MP Jagsharan Singh Mahal requested information on AI-related contracts, subscriptions, and licenses from all government departments, agencies, and Crown corporations, though not all complied. Due to the Dayforce and Cohere deals, Public Services and Procurement Canada and Innovation Canada were the leading spenders, followed by National Defence with $83.7 million and the Canada Revenue Agency with $29.9 million. The Communications Security Establishment and the Canadian Security Intelligence Service did not provide the requested information, while the RCMP stated the information was not available in a centralized database.

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